Amaya’s online casino getting fat off poker cannibalization

Online poker remains the top earner of Canada’s Amaya Gaming but its influence is being undercut by significant growth in Amaya’s casino and sports betting verticals.

Figures released Wednesday show Amaya’s revenue rising nearly 6% to US$310.4m in the three months ending December 31, 2016, while adjusted earnings rose 17.8% to $147.6m. For the year as a whole, Amaya reported revenue rising 7.8% to a record $1.15b.

Real-money online poker revenue from the company’s flagship PokerStars brand fell 5% to $217.2m in Q4, despite quarterly active unique player ranks rising 5%. Poker accounted for 70% of Q4’s overall revenue, down from 78% in the same period in 2015.

Amaya blamed increased cannibalization from its casino vertical, unfavorable currency fluctuations and a $6.8m adjustment in its player loyalty scheme in Q4 2015 for much of its Q4 poker decline.