...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 the company up to £100 million a year.
While the company has already implemented some similar measures to the proposals, such as a £10 cap on stakes for online slot machines and checks on higher-spending punters, the measures announced today are set to cost the company between £50 million and £100 million more.
Cost of Reforms:
The measures proposed by the Government, including a cap on slot machine stakes, will be put out for consultation.
Flutter’s CEO, Peter Jackson, has said that his company will work with the Government to try to shape the final version that becomes law.
However, the cost to the company could be between £200 million and £250 million annually.
Reaction to Reforms:
Flutter has also called on the regulator to look at what more it can do to tackle the problem of unlicensed and unregulated gambling companies targeting at-risk gamblers.
It is important to get new regulation right from the start, as it will ultimately provide the certainty the industry needs to continue investing in jobs and growing the UK’s lead in digital innovation.
New Chair and Dual-Listing:
Flutter has announced that John Bryant, former Kellogg’s boss, will be its next chair.
Its shareholders are set to vote on whether to pursue a dual-listing of its stock in London and New York, which is widely expected to be approved.
Flutter has said this could be a step towards making the US the primary home of its shares.
The proposed reforms in the Government white paper aim to protect people from gambling harm, but it is important to consider the impact on the industry as well.
Companies like Flutter will need to adapt to the changes and work with the regulator to shape the final version of the regulations.
The dual-listing of its stock and appointment of a new chair also reflect the company’s ongoing growth and ambitions.