(Sharecast News) - Paddy Power owner Flutter Entertainment said on Thursday that the gambling reforms proposed by the government earlier could cost the company up to £100m a year from 2024.
The government announced earlier that plans include a mandatory 1% levy on all industry revenues, stricter affordability checks to stop punters racking up massive losses, a £2-12 bet cap on online slot machines and curbing "free" spins.
Flutter pointed out that since 2021, it has enforced a maximum slot limit of £10 per spin. In addition, it has already committed to contributing 1% of annual revenue to RET (Research, Education and Treatment), and has already made voluntary charitable contributions of more than £18m this year as part of its 1% (£20m) annual commitment.
Flutter said that its pre-emptive changes have already removed £150m in annual revenue from the business.
"The group's current best view is that the gross incremental revenue impact from the proposed measures announced today could be between £50m - £100m," it said.
"This would result in the total cumulative revenue impact of changes already introduced and those announced today of between £200m-£250m of annual UK revenue. We estimate that there will be no incremental impact in 2023, with changes occurring from some point in 2024."
Ladbrokes owner Entain welcomed the proposals, many of which it said align with actions it has already taken.
"However, it requires comprehensive assessment and analysis, and a more detailed response will be provided as soon as is practical," it said.
Entain (ENT)
Flutter Entertainment (FLTR)
