Entain says gambling regulations will hit 2024 earnings
Reuters
Published Mar 07, 2024 07:29
Updated Mar 07, 2024 10:20
By Radhika Anilkumar
(Reuters) -Gambling group Entain (LON:ENT) on Thursday said that some regulatory measures in Britain and the Netherlands would hurt 2024 profits, sending its shares down more than 5% in early trading.
Britain, Entain's biggest online market, is expected to put out a review on the gambling market this year, which is said to include a stake cap on slots at 5 pounds ($6.37) and increased affordability checks.
That is expected to cause disruption over the short term and lead to higher marketing investments to recapture some market share, Entain said.
The owner of Ladbrokes and Coral betting shops, said the regulatory measures, however, would be positive for it in the long run.
In the Netherlands, recently proposed tighter deposit limits from the second quarter are expected to hit Entain's annual revenue, Chief Finance Officer Rob Wood told Reuters in an interview.
The group, which also owns bwin and partypoker online brands, faced several challenges last year, from a sudden exit of its CEO to penalty settlements related to alleged bribery offences at its former Turkish operations.
"Regulation remains an inevitable thorn in the side for gambling companies, and Entain is certainly no exception," Richard Hunter, analyst at Interactive Investor, said in a note.
He said that consumers' waning readiness to spend given the wider economic picture and a cost-of-living crisis will remove some of the revenue that may otherwise have come Entain's way.
Entain expects its core profit to fall by about 40 million pounds in 2024. It will provide a profit forecast for the year in August.
Last year, its adjusted core profit rose 1% to about 1 billion pounds.
($1 = 0.7844 pounds)
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Written By: Reuters
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