Betting Business Bulletin 27th August, 2017
Commission figures shine spotlight on problem gambling
The Gambling Commission said last week that more needed to be done to address problem gambling as pressure continues to bear down on the sector.
While the industry regulator said that problem gambling rates remained stable, that did not prevent more bad headlines.
Despite the commission’s statement the news was reported as yet more evidence of an increasing problem, with one newspaper claiming problem gambling had risen by 50 per cent.
Research institute NatCen produced the report, titled Gambling Behaviour in Great Britain in 2015, collating data from three separate reports covering England, Scotland and Wales.
It found that 1.4 per cent of gamblers were classed as problem gamblers (0.8 per cent of the population), with 6.4 per cent classed as at risk (3.9 per cent of the population), a similar rate to that published in the 2012 health survey which covered England and Scotland.
That would make more than two million people in Britain a problem or at-risk gambler.
The report comes as the gambling industry waits for the results of the government’s review of gaming machines and social responsibility measures.
Gambling Commission executive director Tim Miller said: “While overall problem gambling rates remained statistically stable, our research suggests that in excess of two million people are at risk or classed as problem gamblers, with very many more impacted by the wider consequences of gambling related harm.
“We have a clear commitment to make gambling fairer and safer and these figures show that this is a significant challenge.”
He added: “The pace of change to date simply hasn’t been fast enough – more needs to be done to address problem gambling.”
The report said problem gambling was more prevalent among those who had participated in a number of gambling activities in the previous year than those who had just participated in one, which the Association of British Bookmakers claimed showed that concentration on gaming machines was misplaced.
The ABB said there was a responsibility for the gambling industry as a whole to tackle problem gambling.
They added: “Seeking to ban a single gambling product will simply lead to the shifting of problem gamblers to other areas rather than addressing the root cause of the issue.”
GVC linked to Ladbrokes Coral again
Online gambling company GVC Holdings has had a second bid for Ladbrokes Coral turned down, according to newspaper reports last week.
GVC owns the Sportingbet and Bwin brands among others and was linked last year to deals involving both Ladbrokes Coral and William Hill.
The Financial Times said the latest set of talks failed following disagreement over the value of the two companies, with the uncertainty surrounding the government’s review of gaming machines exacerbating the situation.
The paper reported that GVC’s offer valued Ladbrokes Coral at £2.7 billion but with a possible uplift to £3.6bn depending on the result of the government’s review, which could have a profound effect on the betting shop sector.
It was subsequently reported that a crackdown on gambling in Turkey, where GVC has a significant presence, was also a contributory factor.
Analysts at Goodbody said that it was difficult to make any concrete conclusions from the reports.
However, they added: “If the reports are true, it confirms two issues. Firstly, the theme of sector consolidation in the face of increased regulatory pressure is likely to be prevalent for the foreseeable future.
“Secondly, there are significant differences in how people are valuing the potential regulatory impact from the triennial review.”
Ladbrokes Coral and GVC declined to comment.
SIS expresses confidence in greyhound service
SIS said it was confident they would have the volume and quality of greyhound fixtures to provide a full service to customers from the start of next year.
The company also confirmed it was working hard on putting more meat on the bones of its greyhound service which is expected to stand alone from Bags in 2018.
With two rival services looking set to go head-to-head next year, a recent article in the Daily Telegraph quoted an unnamed industry source as estimating that should SIS have 1,500 fixtures to broadcast there would be a shortage of around 1,000 runners to fill those races.
However, SIS product manager Paul Witten said that the betting shop service provider was already contracted for more than 2,000 British fixtures next year and Ladbrokes Coral, William Hill, Paddy Power and Betfred have all contracted to take SIS’s service from January 1.
SIS has recently announced media rights deals with Central Park, Doncaster, Harlow and Henlow, to add to the likes of Hove, Romford, Crayford and Monmore, but Witten confirmed it was on the hunt for more content.
He added: “In the meantime there is still a little bit of a gap, so there is some availability for new fixtures and we are talking to lots of tracks and rights holders about filling a bit of that gap.
“Importantly we are doing that in consultation with our customers so, rather than just recreating what has been happening in the past, we are talking to our customers about how they want that service to look so we can match customer demand.”
An announcement on SIS’s full service for 2018 is expected this autumn.
Ladbrokes Coral results out this week
Ladbrokes Coral unveil their interim results on Thursday, although the bookmaker recently updated the City when they said they were on course to meet expectations.
Analysts at Morgan Stanley said their main focus “will be around current trading in UK retail and the scope and implementation of the increased synergy target”.