UK bookmakers beat England fans in 2018 World Cup

Paddy Power Betfair shares find ground throughout World Cup

Apart from a minor dip following England’s historic penalty-win over Colombia, Paddy Power Betfair shares managed to rise throughout the tournament. Having opened at £835.25 on the day of England’s first game (it is worth noting that the bookmaker also announced the completion of the merger of its US business with FanDuel on this day, although that had been first revealed in May), Paddy Power Betfair shares reached an intraday high of £852.75 on the day after England’s departure. However, shares have since dived.

William Hill shares rise after Croatia knocks out England

Although William Hill shares rose in the wake of England’s exit from the tournament, the bookmaker is now trading lower than it was before the start of the tournament. Having opened at 307.8p on the day of England’s first game, William Hill shares hit a high of 301.35p the following day. Shares have since risen further, reaching as high as 303.45p.

UK bookmakers aggressively advertise to push in-play betting

UK bookmakers have already been heavily criticised for their approach to marketing and, although the industry has taken voluntary steps to help with the likes of problem of gambling (for example), they have still been condemned by some for their overwhelming promotion of betting during the World Cup – with up to three games being televised daily at one point (although the BBC also had its share of matches).

About one-fifth of all adverts broadcast during the World Cup coverage by ITV, which saw its bet on England progressing through the tournament pay-off, is thought to have been gambling related. The rise of in-play betting, which allows punters to place bets during a live game, has meant bookmakers are encouraged to advertise not only in the run-up to a match, but also during it (with the half-time slot being prime). Some estimates suggest that four out of every five bets placed in the UK during the tournament this year were made while the match was in-play, with up to £4000 being wagered per second at its peak.

Learn more about the challenges that WPP and the wider advertising industry are facing

The growth of in-play betting has been assisted by the rise of online and mobile betting, which has been very beneficial to bookmakers by allowing them to streamline processes while also collecting data that could be used to personalise marketing efforts for individual customers. This practice has also been heavily criticised however, with a report from Bournemouth University released earlier this year stating ‘there is only a fine line between the legitimate marketing and personalisation of content and offers on the one hand, and exploitation and manipulation on the other’.

Interestingly, UK bookmakers may have a new audience to attract. The Times reported that about three in every ten bets made during this World Cup was made by a woman, compared to just one in every ten bets made during the 2014 World Cup. Whether that comes down to the sector’s approach to advertising, World Cup fever, or a genuine trend can be debated, but it will be welcomed by industry regardless.

The growing popularity of in-play betting and potential new customer bases to chase could play an important role in helping bookmakers cushion the blow that will come from the crackdown on fixed-odd betting terminals (FOBTs), which had been at the forefront of their business until the government took drastic action earlier this year by reducing the maximum stakes of the machines from £100 to just £2.

Read more about the high stakes for UK bookmakers amid crackdown on betting shop FOBTs

England could look to host World Cup with faith restored in team

England lost out on its bid to host the 2018 World Cup, but talk that the country could launch a fresh bid to host the tournament in the not-so-distant future has begun to circulate. UEFA said it would support an individual bid by England or a collective one from all the members of the UK in June 2017, and deputy leader of Labour, Tom Watson, has said his party would back any attempt to bring the World Cup to England for its centenary year in 2030.

The economic benefits of hosting any well-organised international sporting event are well-known. Media start-up The Bell, which covers Russian business news, reported the World Cup was expected to generate around 300 billion roubles (£3.6 billion) in revenue for Russian bookmakers on the basis that the volumes of bets would be about 1.5 times higher than usual. But that sum could be considerably higher after follow-up reports suggested bet volumes with Russian bookmakers were actually 5 times higher. Online searches for Russian bookmakers between May and July were reported to be over three times higher than usual, outpacing the growth in searches for the likes of stadiums and parking.

Put simply, England hosting a World Cup would be a boon for bookmakers. Still, regardless of where future tournaments will be held, UK bookmakers are set to benefit from the revived belief that England can win the cup sooner rather than later, stirring up our emotions and encouraging us to put our money where our mouth is. This new and improved England team, led by the Marks & Spencer-waistcoat wearing Southgate, has reinstalled the country’s belief in football: and that is good news for everyone – the public, politicians and business.

As we England fans like to point out: we didn’t say when football was coming home.