The British gambling and sports betting giant GVC Holdings has issued a statement to estimate the expected impact of the recently enforced sports betting outlets’ closures on the company’s operations.
The gambling operator, which owns a number of brands, including Ladbrokes, Coral, Bwin and Foxy Bingo, confirmed that the safety, health and well-being of its employees and customers is a matter of paramount priority but also provided guidance about the expected effect that the betting outlet coronavirus-related closures across Europe and the UK retail sector is likely to have on its business.
As Casino Guardian already reported, British Prime Minister Boris Johnson announced further restrictions and social distancing measures in England because of the recent increase of Covid-19 cases across the country. In line with the government advice in the various areas of GVC Holdings’ operations, the gambling giant revealed it is enacting contingency plans aimed at reducing the impact of the upcoming closures on its business.
Earlier today, the gambling company provided a projection for the approximate impact of the restrictions on the wider UK retail and European retail operations’ earnings before interest, tax, depreciation and amortisation (EBITDA).
UK Gambling Operators Remain Concerned about Coronavirus Restrictions’ Financial Impact
GVC Holdings further explained that the estimates have been made after taking into account the approximate impact that the current closures will have on the EBITDA for the required period as of November 2nd and the impact of the closures in case all retail shops were to be shut for a full month.
The estimated impact of the currently required retail betting shop closures on its UK Retail unit is worth £27 million, and £34 million in case all retail outlets were required to be closed for a month. When it comes to the European Retail operations of the gambling giant, the ongoing retail closures would cost it £10 million in EBITDA, and £9 million if it was to shut all of its retail shops for a whole month.
Recently, the UK Government announced a four-week lockdown that would affect so-called non-essential businesses in England, including local betting shops. The measure was unveiled as part of the authorities’ efforts to tackle the further spread of the Covid-19 infection. The new restrictions that are to affect the retail betting sector are set to come into force on November 5th.
Under the restrictions, gyms, pubs and other “non-essential” businesses, including betting outlets, are set to remain shut until December 2nd.
Like the rest of the betting companies in the country, GVC Holdings was already subject to a lengthy closure that has had a devastating impact on the industry. Many gambling operators have shared their concern that another shutdown would be a serious blow to their retail businesses, although online gambling operations have been holding up for the time being.
- Author
Olivia Cole
