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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.
GAN Partners with Station Casinos -
B2B online gaming company GAN (formerly Game Account Network) has revealed Station Casinos as its previously unidentified partner in an announcement made August 2016
Oceanís Call Slot Launches -
Online gambling games developer Habanero has embarked on a journey across the high seas to bring players its latest HTML5 high resolution slot title, Oceanís Call.
Big Names Playing WCOOP -
The big names came out to play in the closing stages of the World Championship of Online Poker this week as major prizes were handed out in a number of exciting and entertaining competitions.
Sirplay to Open Argentina Branch -
#SirPlay expects the new office to be fully operational by early next year, extending its service to Grupo Slots, which holds a license to operate the provincial San Luis Lottery, and other potential LatAm clients.
DFS Changes for Ohio -
#dfs Coley says that at present DFS is an example of the "pools for profit" concept, the rules for which the state Attorney General has opined are unclear in relation to DFS.
New Jersey Teams Up With Kahnawake Gaming Commission -
The New Jersey Division of Gaming Enforcement and the Kahnawake Gaming Commission have agreed to collaborate in preventing unlicensed online operators from accepting bets from New Jersey and other U.S. states through the Continent 8 data centre situated on tribal land, according to reports Tuesday from the Associated Press news agency.
Petition to Ban Online Gaming in Singapore -
Singapore Pools and Singapore Turf Clubís application to operate online betting has triggered the origination of a petition that calls on the Government to deny authorization and stop legalization of online gambling.
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