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Will gambling operators in the UK Be Impacted By Brexit

Tuesday July 5,2016 : TOUGHER TIMES FOR BRIT GAMBLING INDUSTRY IN THE WAKE OF BREXIT?
 
Financial house predicts that 2017 earnings may suffer at major online and retail groups.
 
Davy, a financial advisory corporate based in London, has issued a rather pessimistic note in the wake of the Brexit vote, opining that listed gambling operators in the UK could be impacted as the economy endures months of fiscal and legal uncertainty.
 
The note foresees the possibility of a decline in performance of large online and retail gambling groups, forecasting these as:
 
* Paddy Power Betfair: possible decline of 4.4 percent to an EBITDA of GBP 466 million;
 
* EBIT at Ladbrokes will possibly see a decline of GBP 18.7 million to GBP 92 million - a dip of 17 percent in earnings;
 
* William Hill EBITDA to fall 12 percent to GBP 271 million after a GBP 37 million decline.
 
Davy surmises that companies will have to consider cuts and other operational adjustments in an environment where Britain faces the widely prophesised possibility of another recession.
 
The Gibraltar Betting and Gaming Association, a trade association for online operators based in Gibraltar, has already been active in trying steady the ship in the British self-governing outpost.
 
The trade body has assured operators that no changes will impact them until Brexit is triggered by the UK government, and that in any case many members have already taken out separate licensing with the growing number of national jurisdictions within the European Union.
 
Last Friday the Gibraltar minister for gaming, Albert Isola, reassured local operators by confirming that the government remains strongly committed to them, and that its preliminary survey has indicated that Gibraltar-licensed operators have “confirmed their intention to continue with their expansion plans in Gibraltar.”
 
"There will be little or no change to the current arrangements for those who live and work in or travel to Gibraltar, and all the indications are that it really will be ‘business as usual’,” the minister said.
 
Responding to the minister, the GBGA committed to working with the government.



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