Flutter’s CEO insists gambling crackdown will destroy industry growth
Peter Jackson issues warning to The Telegraph after £2bn was wiped off the value of his company following “challenging” H2 2021 in UK and Ireland
Flutter Entertainment CEO Peter Jackson has warned that a further crackdown on gambling laws in the UK would destroy any growth in the bookmaking industry, as reported in an interview with The Telegraph.
Flutter, which holds a 29% share of the market with its Sky Bet, Paddy Power and Betfair brands, would be one of the operators most badly affected should the government bring in strict new rules in areas such as affordability checks.
These are aimed at protecting problem gamblers but are likely to affect all gamblers, while any restrictions in advertising and sports sponsorship which would make it harder to acquire new customers.
Jackson acknowledged that the government’s long-awaited gambling review was “badly needed” but advised: “We are being very realistic about the growth perspectives of the UK market. I would not anticipate there being a lot of growth in the UK as a result of the changes.”
“I would question how sustainable any growth that people are seeing at the moment is with the impending changes coming in from the gambling act.”
More than £2bn was wiped off the value of Flutter after its it full-year results this week in which bosses said the company endured a “challenging second-half” in the UK and Ireland with “customer-friendly” results leading to the company posting a £288m pre-tax loss last year on £6bn revenue.
It had previously recorded a £1m pre-tax profit on £4bn sales.
Jackson suggested 2021 was a strong year despite the losses, with Flutter maintaining its position in the burgeoning US sports betting market where 40% of bets were made via its FanDuel brand.
Back in 2020 speaking to The Racing Post about the gambling act review, Jackson said the government should “avoid cosmetic gestures that sound good in the headlines but don’t achieve anything meaningful”.
“It has been suggested in recent weeks that football clubs should be banned from carrying sponsorship by betting brands. But, unlike tobacco, gambling is not inherently harmful for an individual if done responsibly and commensurately with someone’s financial means.”
This week Flutter unveiled its preliminary financials for the last 12 months, reporting a 17% year-on-year (YoY) increase in pro forma revenue to £6bn on a constant currency basis.