Bookmakers risk losing tens of millions pounds of a month during sport coronavirus shutdown

Betting companies risk losing tens of millions of pounds a month if the outbreak of coronavirus forces sport to stay in a state of lockdown throughout the summer.

All over the world sport has ground to a halt due to coronavirus, with football fixtures in England postponed until at least April 3.

In Europe the major leagues of France, Germany, Italy and Spain have been suspended indefinitely, while this summer’s European Championships have also been deferred a year.

Cricket, golf, tennis, US sports such as basketball, baseball and hockey have all fallen by the wayside too and this week horse racing was the latest causality as it was suspended in Great Britain until the end of April.

The mass cancellation of sport is being felt by the players and clubs of it, but also by bookmakers - who are being hurt by the simple fact punters have next to nothing to bet on.

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It is now being predicted that some betting companies will be forced to take a monthly hit in the tens of millions pounds due to the sporting blackout, with the banning of horse racing in Great Britain a particular blow as it is one of the most lucrative markets.

“It is a very difficult time for wider society and all industries are going to be affected by this,” an industry insider told Standard Sport.

“Obviously the betting industry is going to be particularly affected in that those sporting events that people like to bet on, if they’re not available, if the racings aren’t being run for a number of months, if football is not on, it is going to have a severe impact.

“Horse racing and football are the two big markets. You have certain special sports that would peak in this period too, like the Masters. That’s a big event in terms of betting. But the two main staples - from a UK and Ireland point of view - would be horse racing and football.”

Betting companies are still calculating the full fallout from the lack of sport, but an indication of the extent of it was given by Flutter Entertainment earlier this week.

The company, who own the likes of Betfair and Paddy Power, revealed they are estimating that in a scenario where restrictions remain in place until the end of August (including the full suspension of Australian sports and the cancellation of Euro 2020), their earnings for this year would be reduced by approximately £90 to £110m.

They added too that should horse racing be cancelled in Australia, Ireland and the UK and, their UK and Irish betting shops were closed, that figure would incrementally further reduce their earnings for the year by approximately £30m per month.

“The challenge currently facing our business and the industry more widely is unprecedented in modern times,” said Peter Jackson, Flutter Entertainment’s chief executive.

“Our focus, first and foremost, is on protecting the welfare of our employees and our customers and we will leave nothing to chance in this regard.”

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Flutter Entertainment are one of the larger betting companies and are expected to be able to ride out the storm, but the concern is others will not be able to cope.

“It is so fragile. The whole eco-system is so fragile in terms of a pandemic like this. It just goes to show how all companies are susceptible,” an industry insider added.

“I don’t think it is too far a reach to say if this continues too much longer there is going to be a global recession off the back of it. I don’t think that is too far a reach.”

There is still some sport currently ongoing, which is providing small solace for bookmakers, with horse racing in Ireland taking place behind closed doors. Greyhound racing is also currently still going ahead, albeit with no fans present.

The Government also yesterday unveiled plans of financial measures to help companies during the outbreak of coronavirus, pledging to invest £330billion to shore up the economy.

Punters’ bets meanwhile, on markets such as Liverpool winning the Premier League, will remain open until a resolution as to how the season ends is found.

Bookmakers will hope that can be done in a straight-forward manner, with the action returning in the coming months and bringing an end to an otherwise uncertain time for all in sport.

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