In the whirlwind of summer 2022, gambling was caught up in political affairs. This made it difficult for leaders to deal with changing economic conditions.
All gambling PLCs expressed deep concern about the negative macroeconomic trends triggered by high inflation, and the cost of living crisis. The challenges presented by the recession will test the notion that gambling is a resilient industry.
Flutter Entertainment’s interim results were dominated by concerns about a ‘consumer tightening’. Despite headline growth, Flutter Entertainment’s year-on-year losses increased to PS112m. This is due to a downturn in the home markets for Paddy Power, Sky Bet, and Betfair brands.
Entain Plc’s investor update also cited ‘Big Pinch’ concerns. It stated that Entain Plc’s online unit experienced a decline due to “foreseen harsher regulatory background and weaker macroeconomic environments”.
Further evidence of the doom of a global economic recession was shown by 888 Holdings’ inability to locate institutional investors for its PS1bn bond. This funding is required to finish its acquisition of non-US assets William Hill.
Playtech, a firm M&A prospect in the beginning of this year was made to reconsider all options when cold feet forced Hong Kong PE Fund TTB Partners to withdraw its offer for the acquisition of the FTSE250 technology group.
The UK is facing difficult times, and business and economic worries are exacerbated by the collapse of the government of Prime Minister Boris Johnson. This was after a string of resignations from senior Cabinet members.
Boris Johnson, who is being surrounded by the ‘Partygate and Pincher sagas, leaves Number 10, as gambling once again predicts that there will be delays in publishing White Paper of Gambling Review. This was promised to him before 2022.
As the Conservative Party starts a two-month campaign to elect its leader, bookmakers will be required to “price up a clown cast” once again. Rishi Sunak, Liz Truss and Liz Truss are the new PM markets.
The UK Gambling Commission (UKGC), which was ordered by Andrew Rhodes as its new CEO, did not suffer disruptions at Number 10. It issued the largest-ever penalty of PS17m to Entain, for AML and compliance failures. Entain accepted full responsibility for the ‘pre2020 failures’, but also highlighted its multimillion-dollar investment in expanding and improving safer gambling protections.
South America’s frustrations with the industry are further exacerbated by Jair Bolsonaro (President of Brazil) refusing to sign federally-approved online and sports gambling laws into law. Bolsonaro instead chose to ignore gambling and cites tax issues that will be resolved by the winner in Brazil’s General Elections.
Global sports OTT platform DAZN has soft launched its much-anticipated DAZN Bet online sportsbook in the UK, despite a series of delays. Shay Segev, DAZN CEO and keynote speaker at SBC Summit Barcelona, outlines DAZN’s ambitions to “become the single destination point for sports engagement.”
Liz Truss wins the “grassroots vote” and is named new PM. She defeats Rishi Sunak, the challenger in the Conservative Party leadership election. Just 48 hours after assuming a new premiership in Britain, Queen Elizabeth II dies, which brings the country to an abrupt halt.
To mourn her passing, sporting events are delayed across Great Britain. UK Racing honors her Majesty by celebrating Elizabeth II, horseracing’s most patron. Gambling is integrated into wider business to honor Queen Elizabeth’s funeral procession.
After deep reflections, it is clear that the UK government has entered a new state of crisis. Liz Truss announced her mini budget, which was rejected by the International Monetary Fund, and thus triggered a self-inflicted run on Sterling.
lasted 44 working days . Truss was ousted by his party colleagues, making him the longest-ruling PM of British history. Rishi Sunak is called upon to be the fifth prime minister in the seven-year period since 2016’s Brexit referendum.
Gambling is a form of politics that has no clear resolutions. Leaders are faced with an economic environment of rising interest rates and higher inflation combined with the pressures from a tech-wide sell-off. There’s little else to be proud of, except British politics.
