2022 was a very successful one for STS but now comes the job of doing well in 2023. With an uncertain economy that’s not going to be an easy task. The decision has therefore been made to concentrate on the Polish market so their online business can continue to be successful.
That partly explains why the company has decided to end their activity in the UK and Estonian markets. Another reason for the decision to leave the UK gambling market is the threat of stricter regulation that may well hit profits according to a casino offers comparison site British Gambler spokesperson.
Let’s firstly take a look at the success that STS has enjoyed in the past year. The total amount that was staked with the company in 2022 increased by 4.2% to PLN4.68bn (£868.4m). There were also increases in both gross and net gaming revenue.
The final quarter of 2022 produced a record net gaming revenue, mainly due to the fact the World Cup was held. Total bets on their sportsbook went up by 13% when compared to the previous year. There was also a 40% increase in active players and 32% rise in new registrations.
All very impressive but still the decision has been taken to withdraw from the UK and Estonia. It was in 2020 that STS launched their online sportsbook and casino in the UK. Launching in other territories is a big step to take and it appears that it hasn’t worked out as well as expected in the UK
That’s not a massive surprise considering how tough the UK market is to break into. It is a highly competitive and over-saturated market and dominated by companies such as bet365, Coral, Ladbrokes and Paddy Power. To gain a good market share of the online betting market is not a simple task for any overseas company.
When you run a business, it’s important to look at the past, present and particularly the future. Having struggled to make a dent into the UK market, the hope would have been to somehow grow their share of the market.
However, one major reason why STS have made the decision to leave the UK market is the growing risk of stricter regulation. The past year has already seen signs of that happening. The UK Gambling Commission (UKGC) has been making life increasingly uncomfortable for the betting companies they have issued licenses to.
New rules have been set out for license holders to follow. When it comes to social responsibility and anti-money laundering procedures, the UKGC have issued millions of pounds in fines for breaches they have uncovered.
March has seen them issue fines of £7.2 million to the Kindred Group. Although no one is saying that a fine might have been issued to STS in the future, it is not a pleasant situation for the online site to be facing.
There is likely to be stricter regulation imposed on the UK gambling market. The UK Government has promised to reform the gambling industry. A White Paper setting out the measures that will be taken is due to be released soon.
It’s believed that it will include a number of strict measures that will be taken against online casinos who are not included in the last Gambling Act passed 18 years ago.
With stricter affordability checks, stake limits on casino games reduced and new rules on sponsorship a possibility, you can see what an uncertain situation the UK gambling market faces at present. How could a company such as STS plan for the future when they don’t know how strict the new measures will be?
As 2023 began, it was clear to STS that they should withdraw from the UK market. Far better to concentrate on the markets that were doing well for them and that means strengthening even further their position in their home Polish market.
Last month saw the company withdraw from the UK market. What therefore does 2023 hold for STS? The president of STS Holding’s management board is Mateusz Juroszek explained just why this new year will see them concentrating on the Polish market.
It was operating data for 2022 that made their future actions clear. Mr Juroszek said that the information “clearly shows that the domestic market is in a growth phase.” That’s impressive considering the “difficult macroeconomic environment.”
To achieve success despite Ukraine being at war, the inflation rate being high and economic stagnation, shows how successful STS are at present to achieve such good figures.
2023 therefore will, according to Juroszek see STS “focusing our activity exclusively on Poland.” This will include a new agreement with the Polish Football Association who they have been working with since 2014.
With more focus on the Polish market the future looks bright for STS. The decision not to be part of the UK and Estonian markets will go some way towards ensuring that 2023 will again be successful for the company.