Part 3 : Channelisation and the offshore market
Chart 15 : Estimated % of monies gambled per type of operator 80 70 60 50 40 30 20 10 0
Onshore Source : Eurogroup Consulting ’ s market research study
Offshore
Chart 16 : Most likely reasons why gamblers choose offshore over onshore ( 1-4 in order order of importance )
3.5 3 2.5 2 1.5 1 0.5 0
Better odds Better service Higher payout Better bonuses Source : Eurogroup Consulting ’ s market research study
• The number of respondents who use both onshore and offshore operators amounts to 30 % of the total registered respondents ;
• 24 % of the funds gambled by onshore / offshore respondents are placed with onshore operators ;
• 75.5 % of respondents gambled on one segment ( 91.5 % on sports betting , 8.2 % poker and 0.3 % casino games ) and 24.5 % of them gamble on one-plus segments ( with 25 % gambling on all three segments ); and
• The overall funds gambled per week on each segment are as follows : € 1m on sports betting , € 80k on poker , and € 21k on casinos .
The report then estimates that these gamblers spend an estimated € 14.4m per quarter , of which 39 % is gambled with onshore operators . The authors note that this is turnover , not GGR .
The report admits it is hamstrung by the lack of data on onshore turnover . Nevertheless , it does make an estimate on the rate of GGR that goes to offshore operators . Taking the estimate from the market research of 61 %, it then suggests there is a gap between the channelling rate for turnover and GGR of between 15 % and 20 %.
Its estimates for the potential offshore market can be seen in Table 6 .
Using the same higher and lower band of channelling rates ( 55 % and 60 % in the onshore market ), we give figures in Table 7 for 2017 and the past three quarters .
As can be seen , the estimates for the offshore market in 2017 would be quite sizeable – just over € 100m in low channelling estimates .
We would add some caveats to these channelling estimates .
Sports betting skew obscures gaming behaviours A major one revolves around the heavy sports betting skew of the respondents . By the third quarter of 2017 , 44 % of the market was gaming . Arguably , gaming players might well exhibit very different behaviour to sports betters when it comes to offshore offerings . The Eurogroup report fails to address the lack of casino and gaming customers in its report .
High roller status of the respondents Similarly , the relatively highspending and high-frequency nature of the respondents means they are likely not representative of
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