GVC’s Kenny Alexander plays down UK regulatory concerns
CEO remains “bullish” over market outlook and insists the operator is growing much faster than its UK competitors
GVC chief executive Kenny Alexander has quashed growing concerns over increased regulation of the UK online gambling market, insisting that pessimism around the industry is unjustified.
The UK Gambling Commission’s clampdown on the UK sector has been well documented, with the regulator launching enforcement action against a number of operators and introducing new rules on identity verification (KYC) and anti-money laundering measures (AML).
The UKGC will also be able to fine operators that break all advertising rules from 31 October.
However, the most prominent challenge for the UK’s online gaming sector is the imminent rise in Remote Gaming Duty (RGD), predicted to jump from 15% to approximately 20% to cover the FOBT revenue shortfall.
Despite this, Alexander remains bullish about the state of the UK market after an excellent start for GVC’s recently acquired UK-facing Ladbrokes Coral (LCL) business.
GVC CEO Kenny Alexander
He said: “There is always pessimism about the UK but I am not pessimistic at all. I am pretty bullish about the UK’s online market because I can see the numbers.
“We have good momentum and we are going to get more aggressive, so there is nothing there that concerns me really.
“If you are growing as fast as we are, you can absorb these things. We are well-placed to deal with it,” he added.
GVC reported an 18% increase in H1 online net gaming revenue (NGR) yesterday with sports brands up 19% and gaming brands up 13%.
The group identified an extra £30m in cost savings from its £4bn purchase of LCL, and the Ladbrokes and Coral brands are leading the way in terms of Q3 performance so far, with online growth up 30% and NGR up by 28% on Coral.co.uk, for example.
Alexander added: “There has of course been more regulation in the UK but GVC has a very good relationship with the UK Gambling Commission.
“We have always co-operated with them but yes there might some more regulation enforced on the online part of the business.
“But our UK business is good with Ladbrokes and Coral. Both brands are growing very well by double digits and in Q3 we have seen an acceleration of growth, particularly in the Ladbrokes brand.
“I think we are growing faster than any of our competitors in the UK, particularly in Q3, and our marketing is improving all the time.”