The turbulent UK gambling market seems to have lately been inhospitable both to local and foreign gambling operators. The French online gambling company BetClic Everest Group has decided to stop offering its services in the UK in what is believed to be the latest one in a series of withdrawals from the country in the wake of Brexit uncertainty and tougher regulatory conditions.
Earlier this week, both affiliates and customers of BetClic Everest Group learned that the gambling company is withdrawing from the UK. As a result from this decision, all of the BetClic Group brands which have been available so far in the country – BetClic, Everest and Expekt – will no longer be operational as of October 31st. Customers of the company’s brands are no longer allowed to make deposits and have been given time until December 31st to withdraw the funds that are currently available in their accounts.
The French gambling company has explained its decision to leave the UK saying that the local gambling sector has been a “very competitive” one and that was one of the reasons why its brands had been facing low performance due to the tougher regulatory and operating conditions there.
UK Gambling Sector Has Become Very Competitive Due to Stricter Regulation and Higher Operational Costs
The overall performance of BetClic has been pretty much stable, unlike the one its UK brands have been lately having. Last month, it became clear that the company’s revenue in the financial year ending on June 30th had increased by 27% on a year-on-year basis and its annual earnings rose by 39%. Its Bet-at-home unit’s profits had almost doubled in the first half of the fiscal year.
The costs for gambling operators to offer their services in the UK have significantly increased over the past few years. The UK Gambling Commission (UKGC) and other regulatory bodies, on the other hand, have been bolstering the regulatory enforcement on the entire gambling sector, both retail and online, spurring some changes which have been found too difficult to deal with by both domestic and overseas gambling companies.
The recent changes in the sector have prompted a wave of consolidations in the industry through a series of merger and acquisition deals. According to some analysts’ expectations, soon the gambling services in the UK will be down to the largest companies, including Flutter Entertainment (especially when the acquisition of the Stars Group is through), GVC Holdings and bet365. Experts say that William Hill could be a possible player, too, in case it manages to remain competitive and is not acquired by one of the other three.
As mentioned above, BetClic has not been the only company which operations in the UK have been suffering. In fact, the French online gambling operator has been the latest one in a series of companies which have decided to withdraw their operations from the UK after concluding that the strict regulatory regime and the high licence fees are not worth the effort to have a mediocre performance in the end.
In April 2019, the gambling company 188Bet decided to cease its operations in the UK and Ireland due to the fierce conditions of a market which has been very competitive. A few months later, in August, JPJ Group’s InterCasino and Vera&John brands also withdrew from the country’s gambling sector in order for the company to primarily focus on the Jackpotjoy brand’s presence in the UK. ComeOn and its subsidiaries, brands of the Nordic gambling company Cherry AB exited the local gambling sector in September, as it was willing to focus on markets which have been more favourable to it.
- Author
Olivia Cole
