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The chief executive of gambling giant Flutter Entertainment has voiced concerns the consultation on affordability checks launched by the Gambling Commission last month does not reflect the principles set out by ministers that such checks should be “frictionless”.
Peter Jackson said the industry regulator should listen to customer concerns and if the commission did not get the system right that “thousands” of customers could face intrusive checks on their betting.
In April the government published its gambling white paper which set out proposals for reform of the industry including two tiers of financial risk checks which it promised would be frictionless for customers.
Last month the Gambling Commission published a consultation on how these would be put into effect, featuring further details which not only set out that the enhanced series of checks could be every six months and that checks could still happen even if a customer account was in profit, but also that the information provided by credit reference agencies might not be enough to prevent large numbers still having to undergo more intrusive checks.
Jackson said Flutter – the parent company of Paddy Power, Sky Bet and Betfair – supported the white paper and the aim to protect vulnerable and at-risk customers.
But he added: “There is a concern that the consultation on some of the checks as laid out by the Gambling Commission doesn’t necessarily reflect the helpful principles set out by the government, for example the secretary of state [Lucy Frazer] highlighted they wanted the checks to be completely frictionless.
“We want to make sure that does happen and we’ll see how things progress but obviously we will continue to be as supportive as we can.”
Jackson added that he wanted to ensure “the Gambling Commission take time to really understand customers’ concerns”.
“If they get this wrong there are going to be thousands of regular customers who are going to face intrusive and unwanted checks which I think would be very, very unhelpful.”
How to respond to the Gambling Commission consultation: Views can be provided at this page. After completing the introductory questions, select ‘Remote gambling: financial vulnerability and financial risk’ from the ‘Consultations contents page’. You may choose to answer as many or as few questions as you wish. Further Racing Post guidance on responding to the consultation can be found here.
Officials at the Department for Culture, Media and Sport have begun a review of the levy system to make up for a shortfall in racing’s income from betting caused by the checks.
Jackson said it was “inevitable” there was going to be pressure on the levy to increase given the situation facing racing.
He added: “We work very hard to try and ensure we can improve the overall package for the racing punter.
Flutter reported a good Cheltenham Festival for the company this yearCredit: Patrick McCann
“I have been very pleased with the market share gains that the business is taking, we captured a very big proportion of Cheltenham this year in the first half. Our brands have been really delivering in a very strong way.
“I think there are further changes that we believe could be made to expand the pie effectively and that is what we would like to spend time focusing on to make sure the continued health of racing is there for the future.”
Jackson was speaking after Flutter published its interim results, which revealed a “pivotal” moment for its US operation as it moved into profitability.
Globally Flutter posted a 38 per cent increase in group revenue to £4.8 billion for the first six months of the year, and core earnings up 37 per cent to £823 million.
However, it was Flutter’s performance in the US which caught the City’s eye as its American arm moved into profitability, achieving adjusted earnings of £49m in the first half of 2023, compared to a £132m loss for the equivalent period last year.
Flutter added it was aiming for a secondary listing in the US late this year or in early 2024.
Jackson said: “The first half of 2023 marks a pivotal moment for the group, with our US business now at a profitability inflection point, helping transform the earnings profile of the group and significantly enhance our financial flexibility.”
The UK and Ireland division also performed well with revenue up 13 per cent which, along with an eight per cent increase in revenues in the international division driven by last year’s acquisition of Italian brand Silsal, helped mitigate headwinds in Australia where revenue fell by one per cent.
“In the UK, we took market share due to ongoing product enhancements,” Jackson added. “In international, Sisal continues its strong trajectory since its acquisition in August 2022. This combined momentum helped offset the reduction in Australian profitability, due to more challenging Covid-related comparatives and a changing tax environment.”
Analyst David Brohan at stockbrokers Goodbody described the announcement as “another solid update from Flutter” thanks to the news about profitability in the US, “excellent” momentum in the UK and Ireland and “another impressive performance” from the international division.
However, Flutter’s share price was down around 3.4 per cent at 14,400p on Wednesday afternoon.
The Racing Post wants to hear from you: What has been your experience of affordability checks since the white paper was published at the end of April, and what do you think of the government’s proposals? Have affordability checks affected your betting behaviour?
It’s a chance for your voice to be heard. Email the Racing Post at editor@racingpost.com with the subject ‘Affordability checks’ to share your experiences, your thoughts about the government’s proposals, and your contact details.
Read more . . .
‘We’ve not been complacent on affordability checks’ – BHA dismisses accusations as it plans response to gambling reform
MP urges racing to make its case against ‘crippling’ Gambling Commission proposals
Affordability checks explained and how to respond to the Gambling Commission consultation
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