Some of the largest firms in the UK gambling industry have responded to the new UK government white paper, which details additional ways that the online gambling industry will be regulated in the new digital age.
There has been a strong response from gambling firms to the Department for Culture, Media and Sport new white paper as the government has stated that they expect these new reforms to cost the online gambling industry up to £812 million. This includes between £125 million and £185 million for lower stake limits on slots of between £2 and £15 and between £380 million and £710 million for new affordability checks.
The Response from Flutter Entertainment
Flutter Entertainment, which owns Sky Bet, tombola and Paddy Power, has responded to the white paper stating that they expect these new gambling reforms to cost the company up to £100 million a year. They also added that they had already taken extra measures to promote responsible gambling by capping online slot machine stakes at £10, rather than the £2 – £15 that is being proposed by the white paper. The new measures already implemented by Flutter have cost the company revenue around £150 million per year.
The new measures, which could cost the company an additional £100 million each year, will see the total impact of new government gambling legislation costing them anywhere between £200 million and £250 each year.
Flutter Entertainment has stated that they will ‘constructively engage with the Government and Gambling Commission’ and will be pushing more to provide support for those who have a gambling problem so that those who simply enjoy the entertainment of online gambling and slot playing can continue to do so unaffected. They have also stated that it is important to get this new legislation right from the beginning so gambling firms can plan for future UK investment.
The Response from Entain
Entain, the owner of popular gambling brands Ladbrokes and Foxy Bingo, has said that it welcomes the clarity that the new legislation will provide and that it looks forward to working with the UK government to implement these new proposals. They also reiterated, similar to the line of Flutter Entertainment, that it is important for new legislation to protect all players but preserve the market for the majority of players who enjoy betting for entertainment.
Entain predicts that the new legislation will cost the company around £30 million.
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