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Warren Bartlett On Future of online gambling industry
Friday January 1,2016 : CRYSTAL BALL GAZING WITH GLOBAL BETTING AND GAMING CONSULTANTS
CEO Warren Bartlett takes an educated guess on what might come about in the new year.
Global Betting and Gaming Consultant's Warren Bartlett has developed a reputation for accuracy in his annual predictions for the online gambling industry, and this year he has published his crystal ball findings on a wide range of likely developments which include:
1. The UK point-of-consumption tax was forecast to raise £280 million in its first year, but is likely to be closer to £475 million.
2. Social responsibility requirements will cost the industry 3 percent in revenue terms or 10 percent of net profit before tax in 2016, rising over the next five years to 15 percent in today’s terms and 35 percent of profits.
3. The Chancellor does not seem to be able to overcome the entitlement culture in the UK and faces opposition to any change to the benefit system. This could mean that tax increases will follow which will be detrimental to gambling either by way of VAT or a direct increase in gambling taxes.
4. Top picks for consolidation targets are: 888, Unibet, Bet Victor, and Skybet. A merger between Skybet and 888 would work. The mergers taking place already will create a ‘mask’ on corporate performance.
5. The Competition and Markets Authority (CMA) will see that the combined business of Coral and Ladbrokes will take a 45 percent market share for betting shops. In 1998 the same merger would have produced a market share of 30 percent. In spite of the changes that have taken place since 1998 many shops will have to be sold. According to the Local Data Company 19 percent of Ladbrokes shops have a Coral shop just 200 yards away. Shop sales could be between 800 to a 1,000, with buyers like Paddy Power, William Hill, Betfred, or private equity outfits.
William Hill used to complain that they could not grow their business because a 2,200 cap was placed on the number of shops they could own, yet the proposed merger creates a 4,050 shop estate. William Hill will no doubt argue that their business has been unfairly restrained over the years.
If the CMA is consistent the 2200 cap will remain in place or they will advise the merger not to go ahead as they did in 1998.
Prediction: a compromise that allows William Hill to grow its base number of shops, probably buying some out of the merger, with up to one thousand shops either closing or being transferred.
6. The UEFA European Football tournament 2016 will exceed betting revenue expectations. Virtually all of the major countries have qualified and several EU members have introduced internet gambling regulation since the last tournament in 2012. GBGC expects total gambling turnover for the UEFA European Championship 2016 to be in the region of US$6 billion.
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Gambling News :
Unibet Name Changed to Kindred Group plc -
Following an extraordinary general meeting at which shareholders approved the change of the Unibet title and brand to Kindred Group plc, the online gambling group will begin trading under the new name on December 12.
Kenya Betting Control Board Reviewing Changes -
Kenya's booming sports betting sector could be facing stiffer government controls, especially regarding marketing, advertising and promotions, according to local media reports revealing that parliament is studying potential amendments to the Betting, Lotteries & Gaming Act.
Britan To Tighten SpreadBetting Controls -
The UK media reported widely Tuesday that Britain's Financial Conduct Authority has announced a crackdown on spread betting using contracts for difference (CFDs) following FCA research that showed 82 percent of clients had lost money in the sector.
Playtech to Buy Back 50 Milliuon in Shares -
#playtech In a statement, the company said that the decision reflects continued confidence in the growth and prospects of the business and its high cash generation, and revealed that it continues to trade in-line with expectations.
Sentencing in Vietnam Gambling Bust -
The People’s Court in HCM City handed down sentences Monday to dozens of defendants linked to a major online sports betting ring dismantled last year by Vietnamese police.
Gamevy in Deal With Betsson -
#Gamevy says it is partnering with several leading operators to deliver bespoke content that offers a real point of difference to players and increases brand loyalty.
Pkr To Offer Virtual Sports -
#pkr The long established and respected online poker and casino operator PKR.com has followed its switch to Microgaming's MPN network earlier this year and the more recent launch of its live dealer offering with a new Virtual Sports attraction powered by Kiron Interactive.
Boris Becker New PartyPoker ambassador -
#partypoker To celebrate the signing PartyPoker has created a Beat the Ace competition in which players get the opportunity to test their skills and luck in four $5,000 freerolls which started December 5. The overall winner will then get to play Becker heads up live in Germany for up to $25,000.
Snowmania Slot Launches -
Capturing the festive feel in the now chilly northern hemisphere, RealTime Gaming has released its December offering, a 5 reel, 20 pay-lines online slot with a jackpot of 37,500 coins.
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