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(Alliance News) - Flutter Entertainment PLC said a long-awaited gambling act review in the UK is "important and necessary" for the industry, which has come under greater regulatory scrutiny.
The Paddy Power owner said it wants to take a "leadership role in responsible betting and gaming". It said it has already made pre-emptive changes that have removed GBP150 million worth of revenue from its UK business.
Proposed measures announced in the UK government's white paper could present an incremental revenue hit between GBP50 million and GBP100 million.
"This would result in the total cumulative revenue impact of changes already introduced and those announced today of between GBP200 million-GBP250 million of annual UK revenue. We estimate that there will be no incremental impact in 2023, with changes occurring from some point in 2024," Flutter said.
Gambling companies in the UK are to be forced to step up checks on punters "to better protect even those unable to afford small losses" under plans to tackle addiction in the biggest shake-up of the industry's regulations in 15 years.
Plans also include maximum stakes for online slot machines of between GBP2 and GBP15 for all customers subject to consultation and a new statutory levy which will see gambling companies required to fund more groundbreaking research, education and treatment, UK Culture Secretary Lucy Frazer said.
Frazer said in a statement to the Commons: "We need a new approach that reflects that a flutter is one thing, unchecked addiction is another.
"So today we are bringing our pre-smartphone regulations into the present day with a gambling white paper for the digital age."
Flutter said it has enforced a maximum slot limit of GBP10 per spin since 2021. It said it has also committed contributing 1% of its yearly revenue to gambling research, education and treatment.
"A consultation will take place on implementing industry standard frictionless ESCs, applying where players lose more than GBP1,000 in a single day or over GBP2,000 in 90 days. These thresholds are halved for players under the age of 25. The consultation will also include the implementation of FVCs where players lose more than GBP125 in a month or GBP500 in a year. Flutter already has a well-developed and extensive player protection framework that identifies various at-risk player behaviours through a range of markers of risk, and expects the customer information obtained through ESC's and FVC's to be assessed within this existing framework," Flutter added.
Earlier Thursday, Entain PLC said it will provide a detailed response "as soon as is practical". However, it noted that the review contains proposals that align with actions the company already has implemented.
Flutter shares were 2.0% lower at 15,725.00 pence each in London on Thursday. Entain was down 1.0% at 1,430.00p.
By Eric Cunha, Alliance News news editor
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