The $2.9 billion purchase of William Hill to Caesars Entertainment seemed like a done deal until two U.S. hedge funds said no, objecting to a decision by the board to recommend approval to investors, according to the Financial Mail.
GWM Asset Management and HBK Capital Management said shareholders did not have enough details to make an informed judgment. The funds own 11 percent of William Hill.
In related news, revenue for William Hill in 2020 fell only 16 percent to £1.32 billion (US$1.8 billion) despite the coronavirus pandemic. Other companies did even better during a year in which casinos, betting shops and sports events closed for portions of the year. Flutter’s Paddy Power Betfair and Sky Betting and Gaming divisions enjoyed sports revenue increases of 5 percent and 26 percent.
The online sports betting handle from March to December exceeded £2.01 billion, according to iGaming Business. The financial results owe in part to a strong fourth quarter. Online gamblers wagered £319.6 million in December.
Gambling statistics for January and February showed a major decline in activity compared to December 2020. Gross gambling yield declined to £495.4 million in February, down 19 percent from December. The number of active accounts fell 4 percent to around 10.2 million, while total wagers tumbled 6 percent to 6.2 billion.
Real-event betting yield declined to £234.5 million in February, or 16 percent from December 2020. In January and February, virtual event betting and esports betting were £6.7 million and £1.6 million, respectively.
Slot machine yield dropped to about £176.9 million, off 1 percent from December. The total number of spins slid 6 percent to 5.50 billion. From December to February, the number of online slots sessions over an hour rose 4 percent. The number of sessions reached 2.6 million in January, but inched down 1 percent in February. The average length of a session was 21.5 minutes, according to Gambling News.
A decline in profits can be attributed to lockdowns in the U.K. The number of cases rose following the holiday season which triggered tighter restrictions.
Betting shops were expected to reopen April 12, with casinos coming back May 17—so long as there is no surge in infections.
Meantime storm clouds could be gathering as 2021 as the industry faces a revamp of the 2005 Gambling Act to accommodate the 21st century digital age. The review began in December by the Department for Digital, Culture, Media and Sport.
Gambling industry opponents like the Gambling Related Harm All-Party Parliamentary Group argued the laws are outdated. The criticism also came at a time when online betting gained momentum, including in-game bets.
Will Prochaska, chief executive of problem gambling charity Gambling with Lives, says in-game bets pose a greater risk because of the speed of games.
“We know that the types of gambling products which create the most harm are those that are immersive and have high speeds of play,” Prochaska said. “In terms of sports betting, these specific products offer multiple opportunities to bet in a short space of time.”
Still, when the DCMS asked for evidence, in-play bets did not seem to be an issue. Instead, the focus seemed to be on VIP schemes, deposit limits and marketing, all of which could hurt betting revenue.
“We welcome the government’s gambling review, which will examine the financial relationship between sports and betting operators,” Betting and Gaming Council chair Brigid Simmonds said.
The sports betting industry hopes to avoid major limitations. “The industry’s importance to popular national pastimes such as football, rugby league, horseracing, snooker and darts shows why it’s vital that the Government gets the balance right, and does not drive punters towards the illegal, online black market, who have no interest in supporting sport either at a grassroots or national level,” Simmonds says.
Prochaska doesn’t buy it.
“I think the argument that you shouldn’t over-regulate regulated sites because people will move to the black market, suggests a race to the bottom,” he said.
Back in November, the Gambling Commission looked at a series of proposals that would alter interactions with customers at risk of problem gaming. The list includes a proposed £100 on deposits until they pass an affordability check.
“I think affordability checks could be a key tool in limiting harm,” Prochaska said. “We believe that anything more than £100 would not be as effective as a soft cap limit. That figure’s really about the upper limit and there has been research from the Social Market Foundation that suggests that that’s the case.”
However, Sonny Cott, operations manager for affordability solutions provider beBettor, said the concern is overblown.
“One misconception is that an affordability check must require a customer to share highly sensitive financial information to an operator even at low levels of spend and disrupt the customer’s play,” he said.
Any changes to sports betting will likely be secondary to online casino changes. Online casino games remain a top priority for gambling opponents because of the level of harm. Many changes proposed to limit harm from online slots such as spin speed, or stake limits, won’t affect sports betting directly.
Another major concerns deals with sponsorship, which could lead to huge losses for leagues like the English Football League if banned.
No matter. Prochaska wants gambling sponsorship to end. “It just seems wholly unnecessary to see that level of gambling exposure, especially to young people and people who may be in recovery,” he said.
Simmonds disagrees.
“Sponsorship from betting and gaming operators is worth more than £10 million a year to darts and snooker, while English Football League clubs receive around £40 million a year from the industry,” she said.
Simmonds told the House of Lords’ Select Committee on the Social and Economic Impact of the Gambling Industry, that as an industry they would consider a voluntary ban.
