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2023 is shaping up to be a challenging year for sports betting companies in the UK. The Premier League says it will end front-of-jersey advertising from betting companies beginning the 2026-27 season.
On the other hand, the gambling white paper is out. And it’s packed with proposals that could reduce bookies’ income significantly. Expectedly, many betting companies aren’t happy about these new changes.
Some of them have been vocal about how they feel. Others have remained mute, probably because they feel the measures aren’t too harsh. All the same, we’ve outlined more information on how the betting industry is reacting to the recent regulatory changes in the country. Let’s dive right in.
Commending Proactive Measures
Peter Jackson, CEO of Flutter Entertainment, is happy that the gambling white paper was released. While addressing reporters, Jackson said his company is welcoming new proposals because they can help the industry reduce problem gambling proactively.
Additionally, the CEO said that Flutter Entertainment was staying ahead of the curve by introducing safe betting rules for young players. For example, it would lower the maximum bet per spin on slot machines to £10—this applies to gamblers below 25 years.
Studies show the human brain does not develop fully until a person is 25 years. This is why there have been a lot of focus betting laws designed to protect young gamblers.
Flutter Entertainment controls a plethora of well-known betting brands: FanDuel, Sky Betting, PokerStars, Paddy Power, and Betfair, to name a few. It’s also one of the best-performing gambling stocks in the world. As such, it’s vital for the company to cooperate with government regulations
Anticipating Lower Revenues
The new proposals will impact bookies’ annual earnings significantly. Many of the best betting sites in the UK are expecting to lose between 10% and 30% of their standard earning this year if the suggestions in the white paper are enforced.
Flutter Entertainment says it lost £150m from its UK-based betting sites last year because of the expected regulatory changes. The company expects to lose up to £100m more by the end of 2024 due to the same reasons.
As already mentioned, Flutter has already accepted proposals in the white paper. It just wishes the government could do more to fight unregulated gambling companies in the UK.
Such measures can help bookies that follow regulations thrive without dealing with unfair competition. They can also help protect British gamblers better.
With that said, it’s not just betting sites that expect to lose income this year. The English Football League is raising alarm about potential losses worth up to £40m per year if the government bands gambling adverts.
Although there are no plans to bet jersey sponsorships by betting companies in the EFL, the league has stated it’s against any such proposals. The EFL believes the gambling advert should be encouraged to contribute more money to professional football.
Weighing New Solutions
Betting companies have been anticipating the gambling white paper for a few years. They knew the proposals were going to affect their finances. And that’s why some of them have been against affordability checks all along.
Despite the opposite, the gambling white paper is now a reality. All bookies can do is to come up with new ways of protecting players. According to William Woodhams—CEO of Fitzdares—the best way forward for sportsbooks in the UK is to embrace tech-based solutions.
To expound more, Woodhams believes safe gambling measures rooted in technology could provide the solution everyone wants. For starters, betting tools can help bettors set deposit and betting limits effectively.
Secondly, they can help bookies monitor problem-gambling signs and help vulnerable bettors before they become addicted.
Opposed to New Proposals
As we mentioned earlier, many bookies are not happy about the proposals in the white paper. Sure, some of them admit the proposals are not as harsh as earlier suggested. Still, they’re unhappy that the new proposals will stifle the industry.
The biggest concern for online casinos is the proposed reduction of maximum bets for slot machines. Advocates are asking the government to reduce slot bets to a maximum of £2.
Anti-gambling operators already succeeded in lowering betting limits on gaming machines a few years ago. That’s why so many operators are afraid the new proposals could go into effect.
When it comes to sports betting, bookies are happy that advertising measures mainly remain the same. Barring the EPL’s decision to end jersey ads, sportsbooks will continue to advertise their services as usual.
That said, some bookmakers are worried there will be increased pressure to regulate them even further down the line. You can’t really blame them. The government has introduced numerous betting regulations in the past few years. Think of credit card bans, betting limits, deposit limits, and compulsory donations to anti-gambling agencies.
Demanding that Donations be Used Properly
Bookies in the UK are now required to donate 1% of their revenues to organizations that help people with addiction problems. Most of them are pro-donating.
In fact, some of them have been donating thousands of dollars to Gamble Aware every month.Bet365 and Entain are the biggest donors in the country, funding up to 90% of the money Gamble Aware receives in annual donations.
When the proposed levy goes into effect, every betting site in the country will need to donate 1% of its income to gambling research programs. The levy aims to replace the existing voluntary system.
Rethinking Marketing Efforts
Sponsoring sports provides unlimited exposure to sports betting companies. It allows them to position their brands in front of millions of sports fans from all over the world.
Most betting sites operate in multiple countries and not in the UK alone. That’s why sports sponsorships are so important to them. In light of the new EPL decision, betting companies are having to rethink their marketing efforts.
If they can’t advertise on the front of jerseys, they will probably place more adverts on the sleeves and electronic boards. What’s more, they will invest more in celebrity advertising and bonuses.
