British crown dependency Bailiwick of Guernsey’s Alderney has been granted £2.3 million in profit from the Alderney Gambling Control Commission (AGCC) in 2023, a figure that exceeds that of 2022 by £636,000. Meanwhile, this Tuesday’s UK stock market session saw Entain and Flutter Entertainment’s stock prices falling, with the latter being attributed to Illinois’ decision to introduce a significant betting tax hike.
As reported by the BBC, the States of Alderney claimed the AGCC’s figures were the result of the “strong rebound” that the global gambling sector enjoyed after the pandemic. In total, £1.85 million has been reserved for capital spending. The remaining £496,000 has gone toward the Alderney eGambling Limited (AeGL) advisory body.
The AGCC was founded over two decades ago in the year 2000, and the regulator’s duties are currently centred around keeping gambling companies looking to operate in Alderney in check. At the time of writing, over 25 companies have been issued and continue to retain an eGambling licence by the AGCC, including Flutter-owned Sky Betting and Gaming. In addition, through a Memorandum of Understanding, the AGCC has maintained a long-standing partnership with the Malta Gaming Authority for the sake of improving regulatory oversight.
New Illinois Tax Regulations Are Reportedly to Blame for the Tuesday Fall in Stock Prices
Ireland’s Flutter Entertainment and owner of Ladbrokes Entain, both listed on the London Stock Exchange, did not do well during the Tuesday session. While Flutter is headquartered in Dublin, Ireland, operations of moving the company’s primary stock listing to the United States are currently underway. According to the Evening Standard, the company was negatively impacted by news that Illinois’ government is planning to move forward with a notable increase in the betting tax gambling companies licensed in Illinois are required to pay.
Once the fee is officially enforced, operators that have an adjusted gross revenue (AGR) of below $30 million will be subject to a 20% tax. The most successful operators that have chosen to cater to Illinois bettors, however, will be required to hand over 40% of their profits to the state. The move was met with disapproval, and Flutter’s Tuesday performance in the UK stock market served as another showcase that the decision was far from popular among investors worldwide.
Flutter Entertainment’s shareholders reached the decision to move the company’s primary listing from the London Stock Exchange to the New York Stock Exchange this May. At present, Flutter’s presence in the NYSE remains secondary. Although UK-facing Paddy Power continues to be successful, as is the case with Betfair, Flutter’s US brand, FanDuel, is performing exceptionally well in The States, and the company is currently licensed to operate in Arizona, Illinois, Michigan, and New Jersey, to name a few. This widespread success was cited as the main reason behind the move. As disclosed in March, however, Flutter saw a net loss of $1.2 billion for 2023, and how the new tax will affect the company remains to be seen.
- Author
Daniel Williams
