Industry Poised for Change Under New U.K. Government
The U.K. dominated headlines last week after ushering in a Labour government for the first time in 14 years. The general election shook up the industry and raised questions around how the party would navigate future gambling regulation.
But prior to the Labour party’s landslide win, UK-based industry lawyer Dan Waugh noted a Labour government “looked reasonably comforting from a gambling perspective.”
Waugh suggested the change of government was no real concern, but he warned against “the organs of state” working within the government that have expressed somewhat of an anti-gambling agenda in the last few years, which he said had viewed gambling as the new tobacco.
All Change as Labour Implements New Gambling Ministers
In the week following the election, Prime Minister Keir Starmer selected MP Lisa Nandy as secretary of state for culture, media and sport, with gambling falling within her remit.
Her junior counterpart, under-secretary of state for sport, gambling and civil society and minister for equalities was given to former shadow gambling minister Stephanie Peacock.
Gamblers Against U.K. Affordability Checks
A huge majority (77.6 percent) of surveyed bettors argued against operators assessing gambling affordability for customers, in a survey carried out by the GB Gambling Commission in May.
However, the data was only revealed after a Freedom of Information request by Regulus Partners was shared with The Racing Post.
There was a broad consensus among bettors in favor of operator intervention when a player appears to be at-risk; 75 percent of respondents said action should be taken to help such customers.
Finland Eyes Liberalised Online Gambling
Finland is planning to ban affiliates, bonusing and influencer marketing, according to a draft online gambling proposal released by Finland’s ministry of the interior on July 3.
The 417-page document will likely be presented to parliament in its 2025 spring session, with an aim to open the market to licensed operators in 2027.
Industry lawyers told iGB the strict marketing rules could hinder the industry and the government’s plans for high channelisation, as marketing is crucial to operators entering a newly competitive market.
Flutter Reflects on Co-Founder’s Legacy
Irish-born Flutter mourned the passing of its co-founder David Power this week. Power had a rich family history in betting dating back to 1895. He ran the family betting shop business for a number of years before partnering with Stewart Kenny and Vincent O’Reilly to establish the Paddy Power brand.
Paddy Power grew extensively throughout the 1990s, with Power serving as CEO from 1988 to 2002. The firm diversified into online in the 2000s and today, as Flutter, maintains the biggest share of the U.K.’s online market.
Betfred Doubles Online Turnover in 2023
British betting brand Betfred saw its online turnover double during its 2023 financial year, thanks in part to its 51 percent stake in South African online operator LottoStar. The acquisition was made in 2022 for £184m and contributed up to £134m in revenue and £41m of net profit during 2023.
But the firm’s results hinted that its US business had been less profitable than expected, as Betfred established a precautionary £40m provision to support it. Future profitability for its overseas business was “uncertain” the Companies House filing said.
In-Play Betting Innovations Under Fire
Micro-betting and other in-play betting innovations have presented “all kinds of challengers for regulators”, GB Gambling Commission deputy CEO Sarah Gardner told the KPMG Gibraltar eSummit last week.
She noted the offerings had caused an increase in disputes from consumers where “already higher-margin, multiple-selection bets now have elements which could be read differently.”
“Many have commented on the growth of bet builders and in-play markets in recent years, but what we see now are new challenges for consumers as they can engage with much more subjective micro-markets,” she said.
