One of the biggest betting companies in Russia was close to increasing its revenue two fold all thanks to the World Cup the country hosted last year.
The data was released by Interfax, a Russian news agency on Wednesday. The figures showed that the total revenue accrued by Russia’s biggest bookmakers hit the sum of RUB110b which is approximately 1.7b US dollars in 2018 alone. This figure increased about 86% more than the sum the 5 companies earned in 2017. The data is courtesy of SPARK Interfax system which is used to gather details on companies based in Russia.
Liga Stavok, a market leading firm was reported to have earned RUB36.1b which is 3 times its revenue, while net profit increased to RUB620.1m, which is 30 times its revenue. As noted by Interfax, some of the profit and revenue assessments are not completely attributed to an increase in activities i.e. market factors playing a major role in its growth and also corporate restructuring.
Fonbet’s, a runner up saw its revenue increase two fold to RUB24.1b, while net profit rose to a five fold increase. In third place is Bingo Boom, with a revenue growth of RUB20.2b a 3 time increase than the regular increase. Unfortunately, their net profit fell to RUB380.6m.
Betcity is in 4th place and was the only company in the top five operators that experienced a dip in revenue last year. Their earnings fell to about 4.2%, a sum of RUB17.3b. On the other hand, the company’s profit rose to RUB458.4m a 9 fold increase.
Just sitting outside the top 5 is Baltbet, with a modest revenue of RUB12.2b a 12.5% increase. Somehow, they were able to bag a net profit of RUB252m even though they lost RUB78.3m in 2017.
JUNE TRAFFIC RUSH FOR 1XBET
1xBet’s stats in 2018 were not good enough to earn them a spot in the top 5. The firm’s website which is licensed in Russia was the undisputed leader in traffic in June 2019. Data from SimilarWeb gathered by Betting Business Russia revealed 1xStavka.ru gathered 10.7 million visits in the month of June alone. This figure is the number of total visits in the previous month and well ahead of Fonbet standing at 8.8 million and Liga Stavok 3.1 million both runner-ups.
It is not clear if all unlicensed online video ads of the international 1xBet domains have affected the local site. It is also tempting to acknowledge 1xBet’s traffic spike to the newly simplified account registration process in Russia, but that did not come into effect until the 14th of July this year.
ADDITIONAL PAYMENT PROBLEMS ON THE HORIZON?
Although, it’s now easy to open an account, payment processing on the other hand may get harder. This is because of a new bill sponsored by Russian legislators that might make MasterCard and Visa stop all their operations in Russia.
A law was drafted in response to the United States government as a way of retaliating to new sanctions imposed on some Russian owned banks. This would force international payment processors to process transactions from Russia irrespective of any fresh sanctions.
Mastercard and Visa’s subsidiaries in Russia in times past, have stopped servicing bank cards in Crimea after military forces from Russia annexed Crimea from Ukraine. Russia plans not to let that happen again in other parts of the country.
Russian media last month cited inside sources saying Mastercard and Visa would likely stop all operations in the country rather than risk punishment in the United States for violating sanctions.
However, a spokesperson from Visa told Ria Novosti that Russia was a:
“Strategically important market” and the company was “committed to ensuring the smooth operation of non-cash payments for all participants in the payment ecosystem.”
MasterCard recently began processing payments for licensed bookmakers in Russia, so gamblers are hoping this return is not short-lived. Legislators in Russia are currently on a summer break but will return to Duma on the 10th of September where they’ll resume debate on the planned legislation.