UKGC CEO: William Hill penalty is “sizable” compared to profits
Andrew Rhodes argues record payment is a serious measure and will not be taken lightly by wider industry
UK Gambling Commission (UKGC) CEO Andrew Rhodes has hit back at critics who have suggested the £19.2m penalty imposed on William Hill is a drop in the ocean compared to the firm’s earnings.
The regulator handed out a record penalty to Hills this week after finding “widespread and alarming” regulatory breaches in the group’s historical operations.
However, some have pointed out that that the eight-figure sum pales in significance to Hills’ parent company 888’s full-year 2022 performance.
888 is expecting adjusted EBITDA for full-year 2022 to land between £305m to £315m.
When taking the top end of this guidance in comparison to the penalty, it amounts to 6.1% of earnings.
Speaking on the Today programme on BBC Radio 4, Rhodes was questioned whether it amounted to “chicken feed”, a suggestion he vehemently refuted.
Rhodes argued the seriousness of the breaches could not be underestimated and that it was not something that would be “shrugged off” lightly.
Rhodes explained: “No gambling operator wants to be given the public airing that they [Hills] are getting. No gambling operator wants to have the largest penalty in [UK gambling regulation] history. The UK has the largest online market in the world in terms of gambling. So, to have a penalty like this is certainly not a good thing.
“When you consider the post-tax profits of an operator this is a sizeable penalty, and this is not something that will be shrugged off.
“As we have said over the last two years, we’ll take escalating actions if operators fail to improve. I’m pleased to say in this case we have seen good improvements in the company under their new management and ownership [888],” he added.
In relation to the regulatory action, an 888 spokesperson also highlighted the significant changes it had made to Hills’ operations since acquiring William Hill International for £1.95bn last year.
The spokesperson said: “After William Hill was acquired, the company quickly addressed the identified issues with the implementation of a rigorous action plan.
“The entire group shares the UKGC’s commitment to improve compliance standards across the industry and we will continue to work collaboratively with the regulator and other stakeholders to achieve this,” the spokesperson added.