XLMedia expects slow start to 2023 in US

The affiliate at its annual general meeting said that it saw a “strong” start to Q1 with the launch of sports betting in Ohio. However, in other markets is said results will be lower than last year due to the launch of online sports betting in New York in 2022 and later in Massachusetts.

XLMedia also noted that the level of acquisition spend by operators has also fallen, with “less generous promotions available to attract new customers”. This, it said, reflected its understanding that growth in the US will not be “linear”, with significant spikes generated by periodic state launches.

The company said it does expect the US market to pick back up again in the second half of the year with new products launching in the sector ahead of the new NFL season.

“Looking longer term, we can expect to see many more US states legalise online sports betting and online casino,” XLMedia said. “23 states are yet to legalise online sports betting, including California, Georgia and Texas, three states are legal but not yet operational, including Florida, and 43 states are yet to legalise online casino.”

It also acknowledged performance in Europe is in line with management expectations. XLMedia added that it will issue a trading update for the first half of the year in July.