New Gambling Rules Mean Less Profits for 888
Gambling operator 888, who last month completed its acquisition of William Hill’s non-US business, has announced that group revenue for the first six months of 2022 had fallen some 13% to £332.1m. Profits at 888 have taken a nose-dive with stricter safer gambling measures in the UK taking the blame.
In the UK alone, revenue has fallen some 35% to £120.8m in what 888 deemed as “reflecting the implementation of more stringent safer gambling policies”. The group in the past year has added a series of additional safer gambling measures “including lower affordability thresholds and reduced slots stakes limits,” all designed to help players stay in control.
Future is Looking Bright
Adjusted profits before tax slumped by 66% to £14.4m for the same period, while adjusted ebitda (earnings before interest, taxation, depreciation and amortisation) was down 29 per cent to £50m. However, it’s not all doom and gloom. 888 believes the business is on a “stable trend” with noticeable growth in UK online revenue in both 888 and William Hill brands.
Chief executive Itai Pazner said: “The group's financial performance in the period primarily reflects market conditions in the UK. However, we believe the proactive actions we have taken to increase player protections and drive higher standards of player safety have put the group in an even stronger position for the future.”
He added: “In the second half of 2022, our main focus is on integration, delivering on our synergy plans, and driving higher profitability across the business. This focus on integration, execution and de-leverage will unlock the huge potential from the enlarged business.
"These actions will position us to take advantage of significant growth opportunities ahead of us, as we leverage our leading technologies to create a best-in-class global betting and gaming platform, and our portfolio of world-class brands, to grow market share and profitability in some of the most attractive markets in the world.”
On 1 July 2022 the 888 Group, which owns and operates 888 Casino, 888 Poker, 888 Sport and 777.com, acquired William Hill International which owns and operates William Hill and Mr Green, and due to this, new safer gambling policies have been imposed across the board. Now, customers are able to access better safer gambling tools including a questionnaire to help assess whether they are playing too much.
There are also links to self-exclusion as well as a ‘time spent reminder,’ effectively reminding you to take a break as often as every 30-minutes. Remember to keep it fun and safe and always have deposit/stake limits in play. For more information on affordability checks, KYC and SOF, check out our guides.
Source: “888’s UK Revenues Plunge 25 Per Cent as Affordability Checks Take Hold”. Racing Post. August 12, 2022.
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Comments (1)
HulioSas 08/15/22, 06:08:54 AM
Just goes to show how much of revenue was from people who couldn’t afford to gamble. It is a hassle to go through providing your documents but once it’s done you won’t have to do it again for a good while.
