Waterhouse bets on making a profit
It now appears he has fresh incentive to carry through on that pledge.
Waterhouse may be forced to curb his marketing arsenal due to a more recent vow - to make a profit.
This follows the sale of his business in August to British bookie William Hill for a modest $30 million up front, with a further $70 million dependent on the company turning a significant profit by the end of 2015.
Massive marketing spend by Waterhouse to date means the business is expected to lose more than $3 million this year on a customer base of 75,000, according to William Hill.
It could have been worse.
British rival, Bet365, might be rethinking its spend after losing more than $36 million in its first year of operations here, which included a marketing campaign featuring Hollywood star Samuel L. Jackson.
Bet365 gained 40,000 customers and revenue of just $7.7 million.
For Waterhouse to receive some, or all, of the $70 million rump payment, the business needs to generate an operating profit on a sliding scale between $10million and $30 million for the year ending December 31, 2015.
Waterhouse said it was still important for the company to market aggressively and get a "share of voice" as it looks to entice punters away from TAB outlets to its online betting shop. While he said he would continue to use TV to advertise: "I don't know if we will necessarily go as much on TV."
The early signs of retreat are already there to be seen.
The Waterhouse brand will no longer be plastered all over Nine's NRL coverage from next year, with Sportsbet - owned by Irish betting shop Paddy Power - paying a reported $40 million to replace him as Nine's official partner.
Sportsbet would not confirm the deal but said sanity was returning to pricing for sport broadcast sponsorships.
"The prices that were being paid were crazy," said Sportsbet executive Barni Evans.
"Some of the price inflation was driven by hyper competition for a small number of premium assets in the marketplace and Tom Waterhouse was at the centre of that."
Frequently Asked Questions about this Article…
Tom Waterhouse is reducing his television presence following controversy over his promotion of live odds during popular sports broadcasts. Additionally, he has a new focus on making his business profitable, which may require curbing his marketing efforts.
Tom Waterhouse is reducing his television presence following controversy over his promotion of live odds during popular sports broadcasts. Additionally, he has a new incentive to focus on profitability after selling his business to William Hill.
Tom Waterhouse sold his business to British bookmaker William Hill for $30 million upfront, with an additional $70 million contingent on the business achieving significant profitability by the end of 2015.
Tom Waterhouse sold his business to William Hill for $30 million upfront, with an additional $70 million contingent on the business achieving significant profitability by the end of 2015.
Due to substantial marketing expenses, Tom Waterhouse's business is expected to lose over $3 million this year, despite having a customer base of 75,000.
Due to substantial marketing expenses, Waterhouse's business is expected to incur a loss of over $3 million this year, despite having a customer base of 75,000.
To receive the additional $70 million, Tom Waterhouse's business must generate an operating profit between $10 million and $30 million by the end of 2015.
Bet365 is facing challenges in the Australian market, having lost over $36 million in its first year of operations, despite gaining 40,000 customers and generating $7.7 million in revenue.
Tom Waterhouse plans to continue aggressive marketing to gain a 'share of voice' and entice punters away from traditional TAB outlets to his online betting shop, although he may reduce television advertising.
To receive the additional $70 million, Waterhouse's business must generate an operating profit between $10 million and $30 million by the end of 2015.
The Waterhouse brand will no longer be featured in Nine's NRL coverage, as Sportsbet, owned by Paddy Power, has reportedly paid $40 million to become Nine's official partner.
Waterhouse plans to continue aggressive marketing to gain a 'share of voice' and entice punters away from traditional TAB outlets to his online betting platform, although he may reduce TV advertising.
According to Sportsbet executive Barni Evans, sanity is returning to the pricing of sports broadcast sponsorships, which had previously been inflated due to hyper-competition for premium assets.
The Waterhouse brand will no longer be featured in Nine's NRL coverage from next year, as Sportsbet, owned by Paddy Power, has reportedly paid $40 million to become Nine's official partner.
Bet365 lost over $36 million in its first year of operations in Australia, despite gaining 40,000 customers and generating $7.7 million in revenue.
According to Sportsbet executive Barni Evans, sanity is returning to pricing for sports broadcast sponsorships, as previous prices were inflated due to hyper-competition for premium assets.
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