Troubling Times for the UK Sports Betting Industry in 2024
Date: 2024-02-01 Author: Dima Zakharov Categories: SPORTS BETTING
2023’s Earnings: A Sign of Things to Come
The year 2023 was supposed to be a jackpot for sports betting with the 2022 World Cup and a bustling horse racing season. However, the reality painted a grim picture. Bet365, the UK's largest online operator, reported an 88% drop in operating profit, setting the tone for a troubling year. 888/William Hill's earnings were no better, raising more concerns.
UK-listed Entain, once a promising player, saw its growth slowing down throughout 2023, leading to a downgrade by Goldman Sachs. Projections for 2024 don't look any better, with forecasts indicating negative growth.
GambleAware Problem Gambling
The UK White Paper, released in April 2023, introduced affordability checks set to be implemented in 2024. These intrusive checks have sparked concerns of driving bettors to unregulated black markets.
A significant issue lies in the contrasting views between the Gambling Commission (GC) and the industry. The GC claims that only 3% of accounts will undergo affordability checks, a figure disputed by many. The absence of clear definitions and explanations further muddies the waters.
Many of the accounts not subject to checks belong to "occasional" punters, who may only wager on major events like the Grand National. Intrusive checks could deter these regular punters, posing a severe challenge to the industry's future.
