UK LEGAL COMMENT
The C word S
Northridge Law partner Melanie Ellis reviews the impact of… well, you know.
ports shutdowns and social isolation are affecting everyone, but sports betting operators and retail gambling premises have been particularly badly hit. The government’s decision to exclude gambling premises from
the business rates relief for the hospitality and leisure sector is a further blow. B2B providers, such as data companies and sportsbook platform providers who rely on a revenue share from operators will of course also be affected. By the time this article is published there is no doubt that further closures will have been announced, but at the time of writing Las Vegas has just closed for business, though on a more positive note most of the Macau casinos have re-opened. A recent financial update from GVC gives an insight
into the likely effects of Covid-19 on the gambling industry as a whole. GVC is a large global group with multiple product types and a mix of land based and online gambling, so of course individual operators with
different product mixes will find their mileage varies. GVC anticipates its EBITDA for the year ending 31 December 2020 will be reduced by £130m - £150m (from around 7680m), so by around 18%. This is before any mitigating actions. A further reduction of about £20- 25m per month is expected as a result of horse racing suspension and, if their UK betting shops must close a further £45-50m per month reduction – this reflects the fact that shop closures will have a negative effect on the group’s bottom line, with staffing costs alone costing £20m per month. In a reflection of the sorry state of the shelves in my
local Tesco, the betting markets currently offered by bookmakers provide a very limited selection. A quick perusal of
oddschecker.com shows that I can currently bet on horse racing in South Africa, Belarusian Premier League football or Gambia Division 2 football. For online operators, those with a wider product selection are obviously in a much stronger position. As more and more people are confined to their houses, play on remote products such as live casino games, virtual betting, slots, bingo and poker is likely to increase. This may also be the moment for betting on esports to really take off, with tournaments able to take place remotely and viewers able to watch via live streaming, even while self isolating. However, operators should bear in mind that some people might be more vulnerable to problem gambling issues at this time. Affordability checks carried out even a few weeks ago cannot necessarily be relied upon now,
30 APRIL 2020
Ladbrokes: Tupungato/Adobe Stock
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