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EU Sports Forum 2008: Open online gaming and betting markets beneficial to sport funding, Independent study shows
The European Gaming and Betting Association (EGBA), attending today the EU sports forum 2008 in Biarritz (France), publishes a major study into the contribution of the gaming industry to the funding of sport. The study, undertaken by leading independent UK consultancy, 'Sportsbusiness', compares the sports funding models of the UK, where a Lottery monopoly (National Lottery) coexists with a competitive and regulated online gaming and betting market with that of France, where both the lottery and sports betting are under the monopoly of Française des Jeux (FDJ).
Contrary to pre-conceived ideas, the study shows that a competitive and regulated betting market proves in fact beneficial to sports funding, including for grass-roots sports.
Sportsbusiness found that:
· Overall analysis indicates that UK sports have benefited from a broader funding model:
o ‘Bottom Up’ Analysis shows that the average annual budget per UK National Governing Bodies (NGBs) was €80.1m compared to €46.4m in France. Of this, commercial funding represented the most important income source at 67.4% of revenue in France, and 65.4% in the UK; with lottery funding accounting for 10.2% of revenue in France, as opposed to 7.9% in the UK
· Levels of grass-roots sport funding were not reduced in an open and regulated market:
o Top Down’ Analysis shows an average of €4.8m per annum in lottery funding was received by each of the French Federations analysed, with 33.3% of this sum allocated for grass-roots sport and 66.7% on performance. In the UK, NGB benefited by a higher amount at €6.4m each - with 56.3% allocated to grass-roots, and 43.7% on performance
· Lottery performance and contributions to sports were not compromised in an open and regulated market:
o During the period 2004 to 2007, 4.5% of UK National Lottery sales were allocated to sport. La Francaise des Jeux’s contribution to sport over the same time period was 3.8%.
The objective of the EGBA in this study was to provide hard data to the hugely important debate on sports funding, to identify the genuine issues and drivers and hence facilitate informed decisions.
According to Sigrid Ligné, Secretary General of the EGBA: “These findings confirm that allowing a fair market access to EU-regulated online gaming and betting operators, does not represent any threat to existing sport revenue and funding streams. On the contrary, it creates additional funding opportunities in jurisdictions where commercial partnerships originating from EU private gaming and betting operators are currently prohibited. We are convinced that a fair and regulated opening of the online gaming and betting sector will rapidly lead to a diversification of funding sources for sports”.
The EGBA welcomes constructive dialogue around sports funding with the objective of developing a long term sustainable model for funding sport.
David Henwood, Sportsbusiness director commented, “This study was rigorous in its data collection and analysis and highlights the complexity of the sports funding issue. A fact-based assessment is really the only method to draw accurate conclusions about the role of gambling industry contributions to the funding of sport. Our findings indicate that differing gambling models can coexist without having a detrimental effect on sports financing and indeed a broader funding model can be beneficial for sport as a whole”
Please see link to the executive summary.
Please see link to the full study.
- ENDS -
For further information or comment please contact:
Sigrid Ligné:
0032/2/256.75.27 or sigrid.ligne@egba.eu
David Henwood:
+44 (0)7958 712764 or david@davidhenwood.com
About EGBA:
The EGBA is an association of the leading European online gaming and betting operators Bet-at-home.com, bwin, Digibet, Carmen Media Group, Expekt, Interwetten, PartyGaming and Unibet. EGBA is a Brussels-based non-profit making association. It promotes the right of private gaming and betting operators that are regulated and licensed in one Member State to a fair market access throughout the European Union. Online gaming and betting is a fast growing market, but will remain for the next decades a relatively small part of the overall European gaming market in which the traditional land based offer is expected to grow from € 80 Billion GGR in 2007 to € 95 Billion GGR in 2012, thus keeping the lion’s share with 90,6% of the market. Source: Global Betting and Gaming Consultants, May 2008
http://www.responsiblegamingday.eu/
About Sportsbusiness:
Sportsbusiness is a leading independent sports consultancy based in the UK. With experience from professional and Olympic sport, the company provides expert, macro level commercial advice for sports bodies, investors and analysts across all aspects of the European sport market. Established since 1999, it has in recent years - through an associate relationship with a former partner of Global Betting and Gaming Consultants and now Director of new company, H2 Gambling Capital - developed a unique expertise in the supply of gambling and its inter-relationship with the funding of sport across the European Union (EU).
