Italy FY 2020: turnover, top 10 operators, product | Annual results 2020
In a year defined by the novel coronavirus pandemic (Covid-19) and the resulting lockdowns, the Italian video game market grew by 43.2% as store closures accelerated the shift to betting and online games.
According to figures provided by Ficom Leisure to iGB, revenues from all online verticals have increased (see interactive charts 1 and 2 below).
This includes online sports betting, which held up in the first half of the year despite the suspension of almost all world sports from mid-March to June, before growing 74% year-on-year in H2 (graph 5). As a result, total online betting revenues fell to just under â¬ 1 billion (graph 6).
Online games, meanwhile, saw their turnover soar by 47.1% to 1.48 billion euros.
Within this segment, casinos and slots were the main driver of revenue, generating 82.4%, or 1.22 billion euros, of the total. This represents an improvement of 46.5% compared to the figures for 2019 (charts 3 and 4).
Meanwhile, the global foreclosure online poker boom was reflected in a strong year for the vertical in Italy.
Cash games and poker tournaments generated GGR of â¬ 124.3 million and â¬ 82.7 million respectively. The vertical’s revenue for the year was â¬ 207.0 million, representing a 50.2% year-on-year growth and reversing the downward trend of the GGR. Bingo GGR represents 3.9% of the total online gaming market, at â¬ 58.2 million (charts 2 and 3).
The changes in the market have resulted in some change in the market share among the major online casino providers in the market. However, the top four – from Pokerstars, Sisal, Lottomatica and Snai – all stayed in place. Pokerstars, already the country’s largest online operator, was perhaps the biggest winner, increasing its market share to 12.2%.
Looking at the rankings, however, there has been a change as 888 overtook Eurobet as its market share rose to 6.8%, while SKS365’s PlanetWin365 saw its share drop from 4.8% to 5. 3% and Goldbet entered the top 10, with William Hill falling (Chart 7).
In online betting, Bet365 remained in the lead but its market share increased from 15.7% to 14.0%. The online betting giant lost its top spot in the November and December rankings as the country returned to containment. This has seen retail operators climb the charts as their customers migrate online.
Snai, previously in third place, moved closer to second place with 13.2% while Planetwin365 slipped to third place. Eurobet and Sisal’s market shares also exceeded 11%, closing the gap with Planetwin365 (graph 8).
“The Italian land and online betting and gambling market is experiencing an acceleration in the consolidation of operators through mergers and acquisitions,” said Ficom founder Christian Tirabassi. âThe main operators of online and mobile betting and games are companies offering an omnichannel offer (online marketing and acquisition of land-based players). “
This consolidation means that the top eight online betting operators now have a combined market share of 78.5%. The value of omnichannel products can also be seen, with six of those eight having some form of retail presence.
Looking at the combined online and retail sports betting market, operators focused on online sales were unsurprisingly the biggest winners. Lottomatica’s market share increased by 3.6 percentage points and that of Bet365 by 1.7 points. However, Snai remains in the lead with a market share of 1.51% (graph 9).
As the online poker market grew significantly, the dominance of Pokerstars continued. While its share of tournament GGR declined slightly to 58.2%, it increased its share of cash game revenue to 46.8%. Snai was far behind in terms of tournament revenue, while Sisal held that spot for gambling (Charts 10 and 11).
“In the future, we expect pure online operators to acquire Italian terrestrial networks (terrestrial stores or subsidiaries) so that they can compete in one of the largest regulated online markets in Europe,” Tirabassi added. .
Scroll down the infographic to follow how the market has grown since 2016, as well as how revenue share has changed over the years.