The UKs’ changing regulatory landscape has had a negative effect on Ladbrokes owner Entain, with the gambling giant’s report for 2024’s first quarter highlighting a 7% decline in terms of net gaming revenue (NGR) when it comes to its British and Irish operations. Online wagering was hit particularly hard, with Entain generating 9% less than last year. As for retail gambling, the reported NGR decline stood at 6%.
However, the company is optimistic that things will turn around by 2025 as it is working toward improving its operations. Moreover, the UK’s gambling sphere is predicted to stabilise in terms of its regulatory framework, and this is expected to have a positive effect on Entain’s profitability in the region.
The Results in Other Markets Were More Than Adequate
It should be noted that “operational improvements” have already delivered positive results in Brazil, with Entain avoiding a loss and instead being successful in growing its performance in the country. The US was also a market where Entain found notable success, and the group’s total revenue was up by an overall 3% in Q1.
According to Interim CEO Stella David, who is set to succeed current Chair Barry Gibson once he retires, Entain performed as expected during 2024’s first quarter. She highlighted the positive results in the US, which were largely driven by both the Super Bowl and March Madness, and further noted the excellent profitability achieved in Brazil.
It also appears the company’s efforts to “accelerate Entain’s operational performance” have been going smoothly, as David claimed that she and her team were pleased with the overall progress. She added that further work will be put into facilitating future revenue growth.
Entain is Recovering from a Turbulent Chapter in its History
Entain was established in 2004, and throughout the years, it has certainly had its ups and downs. More recently, in 2019, the company was investigated by the UK’s HM Revenue and Customs over violations of the Bribery Act 2010 concerning a formerly Entain-owned gambling business in Turkey. The case was settled last December, with Entain being mandated to pay a fine of over £580 million. As a result of this issue and a series of expenditures, Entain ended 2023 with a loss. The overall positive results for Q1 2024 are, therefore, a welcome sight for the company.
As established, Entain is also expecting its UK-facing businesses to see improvements as a result of the “levelling” of the jurisdiction’s regulations. The UK Government and the Gambling Commission (UKGC) are currently in the process of updating the UK’s legislation so that it can better accommodate modern gambling, with special attention being placed on the impact technology can have on the practice. The Gambling White Paper was published in April 2023, and it includes a range of proposals that aim to improve the regulatory framework for both consumers and industry players. Further feedback and preparations will be necessary for the implementation of all agreed-upon amendments to be achieved.
- Author
Daniel Williams
