|11/03/2008||Sports Stock Suffers
In the world of online gambling, sports betting is a section constant and available. Even in areas where online casinos are taboo, gambling on the outcome of the world’s sports may be seen not only as acceptable, but in fact the exception to the rule.
For this reason, you want your teams to do well. AC Milan is one of the most successful club soccer teams in the world. This quality is what led BWIN Interactive Entertainment AG, also known as BETandWIN.com Interactive Entertainment to sponsor AC Milan. A decision they are now second guessing.
BETandWIN’s principal endeavors provide online gambling to an international audience in terms of world’s sports. They’ve announced recently that their sponsorship with AC Milan, (formally Associazione Calcio Milan) has resulted in a loss of funds, and their revenue numbers are down for the quarter.
The net loss has been recorded as 5.1 euros in the 3rd quarter, and the gross gaming revenue has lowered itself to 86.2 euros, an 11% drop.
In an attempt to recover from the loss, they’ve pulled out of Turkey and United States markets, and intend to minimize their participation in the Vienna district by 44%. In Vienna, shares fell a sharp 2.88 euros, a tell-tale sign of their tentative position.
The loss of revenue has come as a surprise to some. As a seemingly perfect match, the backing of AC Milan by BWIN has some scratching their heads at the drops. A chief investment officer at Meinl Bank in Vienna, an expert in BWIN stock was quoted as saying, “BWIN has not made the profit that some people were waiting for.”
The causes are yet unknown, and probably will remain so, though some speculate that the online casino turmoil developing in Germany may have backfired on apparently innocent sportsbetting. As a precaution, BWIN has also ended its sponsorship of German soccer clubs, such as Werder Bremen.
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