…By Henry George for TDPel Media.
Flutter, the owner of Paddy Power and Sky Bet, has announced that the gambling reforms proposed in a government white paper will cost it up to £100m annually.
Meanwhile, the government expects measures to cost up to £812m for the online gambling industry as a whole.
The Department for Culture, Media and Sport said that new affordability checks are set to cost between £380m and £710m, while stake limits for online slots could cost between £125m and £185m, totalling an impact of between £515m and £895m on the online industry.
Flutter has already taken steps similar to many of the proposals, including a £10 cap on stakes for online slot machines, costing around £150m in revenue annually.
However, the measures announced could cost it between £50m and £100m more, totalling an impact of between £200m and £250m.
Flutter CEO Peter Jackson has said that the firm will work with the government to try to shape the final version of the reforms that becomes law.
Ladbrokes owner Entain expects a smaller impact of less than 1% of its online revenues, which would be roughly £30m.
The UK Gambling Act Review is seen as an important step towards having a robust regulatory framework that is fit for the digital age and creates a level playing field for all operators.
As we have reported, the reforms are part of the government’s efforts to tackle problem gambling, which has risen during the pandemic, and aim to better protect vulnerable gamblers.