Bookmaker William Hill posted a healthy annual profit thanks to favorable results at the end of the year. However, the company said further regulatory changes in the U.K. could have a negative impact on the current year results, Reuters said.
Last month, the government banned the use of credit cards to place bets. The ban comes on the heels of moves to slash maximum stakes on popular high-speed slot machines, steps designed to combat gambling addiction.
British regulators are also thinking of limits on the amount consumers are allowed to bet online as part of a spate of measures to overhaul online casinos.
William Hill, which takes around 5 percent of its online U.K. deposits through credit cards, expects the credit card ban to hit adjusted operating profit by another £5 million to £10 million (US$6.5 to $12.99 million).
The changes, and a more general shift towards online betting, led William Hill to close 713 high street stores last year and pivot towards the United States.
The company signed an online deal with CBS Sports earlier this month and is close to launching in another eight states, adding to the nine states where it operates. Chief Executive Officer Ulrik Bengtsson said he expected to break even in the country in 2020.
“We move into 2020 in a stronger position,” Bengtsson said. “Almost a quarter of revenue is now generated outside the U.K. compared to 15 percent in 2018.”
The company’s adjusted operating profit fell 37 percent to 147 million pounds.
“But with its chips heavily staked on the American market, William Hill will be crossing fingers and toes that there aren’t any regulatory setbacks here. The U.S. presidential election in November is a possible risk factor to watch,” AJ Bell investment director Russ Mould said.
William Hill said U.S. net revenue increased 38 percent for the year ended December 31.
