-
Casinos for you
STS Betting Group Thrives Despite Global Gambling Decline
By Shane Addinall Aug 21, 2020 IndustryPolish STS Betting Group strengthens their position as a market leader despite all the challenges faced during the novel Coronavirus pandemic. The key to their success offers insights into what we can expect from the market in the future.The novel Coronavirus pandemic has been tough on most gambling markets with many land-based casinos unable to reopen after being shuttered for many months.
In the latest tax report released by the Polish government, the Ministry of Finance revealed that gambling industry tax revenues (betting and lottery) declined by 10% to PLN 343 million (€75m) in the first half of 2020.
Bookmaker Barricades
Bookmakers, in particular, suffered due to the cancellation of many live matches and reported a decline of around 27% with registered tax revenues of PLN 139 million (€31m) dropping from the usual PLN 189 million (€42m) according to an estimate issued by gambling association ‘Graj Legalnie’.
Warsaw-based STS Betting Group was an exception to this rule though and took around 50% of the total regulated Polish sports betting marketplace revenues. In fact, the top 3 spots were all taken by well-established incumbents:
- 1st place: STS Betting Group
- 2nd place: Fortuna Entertainment
- 3rd place: Forebet
In a recent interview, Mateusz Juroszek who is the owner and CEO of STS attributed their success to the fact that they are lightyears ahead of their competitors when it comes to virtual sports.
Who is the STS Betting Group?
According to the STS Betting Group website, the company offers many services to customers.
“STS Gaming Group is a leading company in the gaming industry in CEE, providing betting services to over 1 million customers in Europe. The portfolio of the Group includes sportsbook, virtual sports, casino and live casino, a wide range of esports betting is run as well.”
The group has around 1,500 employees and operates more than 440 betting shops in Poland and has 4 offices located in Katowice, Warsaw, Prague and Malta.
Juroszek commented on the business as it is currently running, saying:
“STS currently caters to several European markets, of which the UK is its fastest growing. We are providing betting services to over 1 million customers in Europe. We are not only the first domestic company in this industry that operates outside the local market but the first Polish bookmaking business to secure a gaming licence in the UK regulated market. Obtaining the license is part of STS’s broader international long-term growth strategy. We boast an enviable portfolio that includes sportsbook, virtual games, online casinos, as well as a wide range of esports.”
When asked the question about what key factors and dynamics the sector has to tackle in order to help its recovery? Juroszek answered that a “significant chunk” of the domestic market is taken up by non-licensed operators. He continued that these operators don’t pay tax or follow rules set down by the Polish government.
“We have to carry on speaking to the Finance Ministry by expressing to them that we are dealing with a challenging situation, not only because of COVID but because the tax is extremely high – a 12% tax on turnover is more than 50% on GGR.”
STS plans to obtain its own licences in other markets – outside of Poland and the UK once the pandemic restrictions have been lifted, with a view of continued growth in licensed markets internationally.
You might also like