|Australian casino company Jupiters Ltd. has reported strong initial interest in its Centrebet sports betting business, leading to speculation that the online sports book will be sold outright rather than separately listed on the stock market. |
Despite initial suggestions that it would be hard to find a buyer, more than 80 expressions of interest in the business have been lodged, and a sale looks likely to be achieved in mid-June, an inside source said Monday.
However, Centrebet is heavily reliant on the Scandinavian market, and a recent report states that potential changes to Denmark's online gambling legislation may lead to a tightening by other countries in Scandinavia.
But this regulatory issue, raised in a research report from broking house JB Were and reported Monday in the Australian Financial Review, has been downplayed as hurting potential competitors possibly more than Centrebet itself.
Another threat to Centrebet is the emergence of betting exchanges, which allow gamblers to bet directly against each other for a commission fee.
Betting exchanges tend to be used by high rollers, including bookmakers laying off their own bets, and have been a factor in slowing turnover growth at Centrebet.
The evolving regulatory and competition environment are just some of the factors making it difficult for analysts to value Centrebet.