Business

SVL expects over $2b more from new game, more draws

...and sports betting

Wednesday, June 04, 2014    

Print this page Email A Friend!


Supreme Ventures Limited (SVL) expects to generate up to $2.6 billion in additional revenue this year led by increased draws, a new game and increased sports betting driven by the FIFA World Cup.

That would equate to single-digit growth on the $35 billion in revenues earned last year.

"We expect growth from all our initiatives to see an increase in the region of $1.5 to $2.6 billion ," said Brian George chief executive officer and president of SVL, in his address to shareholders at the Knutsford Court Hotel in Kingston yesterday.

A large chunk of the proposed revenue rise between $434 to $869 million will come from the addition of an early morning game draw. That is based on a 30-week sales projection, according to George's powerpoint presentation. That draw will be broadcast at 8:30 am.

The company will also announce a new game called Top Draw.

But George avoided revealing specifics, opting to wait for its launch later this year.

"There is a reason it is called Top Draw," he said, pointing to the game's logo which illustrates stacked cabinet drawers.

SVL expects to grow its sports revenues substantially, valuing the long-term market size at up to $10 billion. Its sport betting brand JustBet earned revenues of $266 million last year, despite regulatory delays.

"That's peanuts compared to when we say the business is worth anywhere between $8 to 10 billion," said George on sports betting.

However, SVL sports betting revenues grew from $75 to $95 million in the March quarter 2014 year on year. SVL operates 28 company-owned sports betting locations across the island compared with over 1,100 lotto agents .

The recent parliamentary approval given to amendments to the Betting Gaming and Lotteries Act will allow for the expansion of third party contracted sports betting terminals. It's expected to catapult the sports betting market.

"Our target is to have 400 terminals by the 12th of June, the beginning of the World Cup. We are well on our way to achieving that goal," he said.

The regulator, Betting, Gaming and Lottery Commission, still has to give the company the final go-ahead to flip the switch on the new machines.

The move aims to capture the anticipated increased betting activity surrounding the FIFA World Cup.

"In terms of long-term outlook, the Jamaican lottery business is valued at $50 -60 billion including the illegal lottery business," he said. "Local sports betting represents a high growth area."

ADVERTISEMENT

POST A COMMENT

HOUSE RULES

 

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper – email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT
ADVERTISEMENT

Poll

Do you think the current Enquiry will bring any benefit to residents of Tivoli Gardens?
Yes
No


View Results »


ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT