Bethel Finance: Toto betting revenue down 3% in 2011

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The Israel Sports Betting Board's (Toto) revenue totaled NIS 1.52 billion in 2011, 3% less than the all-time high of NIS 1.57 billion in 2010, according to documents released by Toto at a press conference in Tel Aviv today. The lower revenue was due to lack of major football events last summer, such as the World Cup or UEFA Championship, which are important sources of bets during the off season for European leagues.

The main beneficiaries of Toto's proceeds are the bettors: NIS 908.1 million was paid back to bettors, 59.5% of total revenue. Toto's operating profit was NIS 316 million in 2011.

How much of the proceeds go to athletes, sports organizations, and associations? In 2011, Toto disbursed NIS 217.1 million to sports through support for various sporting bodies. Football, which is also the main source of Toto's revenue (over 80% of bets are on football matches), was in first place, receiving NIS 97.3 million, 45% of Toto's investments. Basketball (the Israeli Basketball Super League Administration Ltd.) received NIS 37.4 million; followed by volleyball, with NIS 9 million, the Olympic Committee of Israel, with NIS 7.7 million, the Israel Handball Association, with NIS 7 million, and the Israel Tennis Association, with NIS 6 million.

Sailing is the biggest beneficiary of Toto money on a per-athlete basis: NIS 7,222 per athlete (NIS 2.87 million for 403 active athletes). Football is in third place, with NIS 4,413 per athlete. Altogether, 76,647 active competitive athletes in all sports are eligible for Toto stipends, with an average stipend of NIS 2,833 in 2011.

Despite the decline in revenue, in 2011, Toto approved a record NIS 444.6 million for future investments in infrastructures, up from NIS 119.1 million in 2010. 58% of the total (NIS 257 million) was allocated for youth programs. The largest single allocation - NIS 63 million - was for one of the stadiums that will be built for the UEFA Under 21 Championship, which Israel will host in 2013.

The Israel Sports Betting Board expects NIS 1.8 billion revenue in 2012. Chairman Zach Fishbein said, "We have set ourselves high targets to double the Sports Betting Board's revenue to NIS 3 billion a year within three years."

Despite the optimism, Toto's ability to boost its revenue in years without major summer sports events is uncertain. Its annual revenue is about the same as three years ago, even though games' schedules and betting options have expanded since then.

The main growth engines that Toto has marked include a platform for betting via cellphone, expanding the Winner betting program, expanding betting to new sports, and bringing horse racing to Israel - a plan that Toto has been talking about for over 15 years.

The Israel Sports Betting Board also plans to clamp down on illegal gambling in Israel, which it says totals NIS 15 billion a year.