PokerStars parent TSG had its best-ever Q1. But the results will fuel concerns about the rise in online gaming during coronavirus lockdown and its impact on problem gamblers. (Image: PokerStars)<\/figcaption><\/figure>\r\nRevenues for the three months to March 31 increased 27 percent to $735 million when compared with the same period last year, the group said.<\/p>\r\n
TSG is less exposed to the sports betting drought than many of its competitors. The majority of its revenues (62 percent in 2019) come from its flagship PokerStars brand and online casino operations, despite its acquisition of UK online betting giant SkyBet in the summer of 2018.<\/p>\r\n
The company told investors in March that its lower reliance on sports betting would put it in a good position to absorb the shock of the crisis.<\/p>\r\n
Online Poker, Slots Up 44 Percent<\/strong><\/h2>\r\nSure enough, TSG confirmed that it saw increased activity across its online poker and casino verticals from the beginning of March. This was when the community spread of the coronavirus was confirmed in Europe, and when social distancing measures began to be rolled out.<\/p>\r\n
International revenue growth for the two verticals was around 44 percent in March, year on year, TSG said, which \u201cmore than mitigated the disruption from the cancellation or postponement of sporting events during that time.\u201d<\/p>\r\n
\r\nWith these encouraging trends, a well-diversified and cash-generative business, and our strong balance sheet, we believe that we remain well-positioned to navigate further headwinds related to the COVID-19 pandemic in 2020,\u201d said TSG CEO Rafi Ashkenazi.<\/p>\r\n<\/blockquote>\r\n
TSG\u2019s results will fan fears that social distancing measures have created a \u201cperfect storm\u201d that could increase problem gambling, as housebound and sports-starved gamblers turn to riskier products, such as online slots.<\/p>\r\n