Response to the Gambling Act Review

Entain PLC

27 April 2023

 

For Immediate Release

27 April 2023

Entain plc

Response to the UK Gambling Act Review

Entain plc (LSE: ENT), the global sports betting, gaming and interactive entertainment group ("Entain" or the "Group"), welcomes the publication of the UK Gambling Act Review White Paper by the UK Government's Department for Culture, Media and Sports ("DCMS") review of the UK Gambling Act 2005 ("GAR White Paper").

The GAR White Paper is an important step towards having a robust regulatory framework in the UK that is fit for the digital age, raises standards across the industry and creates a level playing field for all operators.  The GAR White Paper includes a number of important proposals, some subject to further clarification following consultation.  The key areas that will have an impact on our UK online operations are:

• £2 slot limit for under 25s
• Staking limits of £2-£15 for online slots
• The requirement for operators to carry out financial checks based on online customer deposits, principally being £1,000 per day, or £2,000 over 90 days
• Controls over certain game features
• Introduction of mandatory deposit limits and use of bonuses
• Compulsory industry levy of 1% of Gross Gaming Revenue ("GGR")
• Independent industry ombudsman funded by the industry

We continue to lead the industry on player protection and have proactively taken a number of actions to deliver a safer environment for our customers, many aligned with the proposals outlined in the GAR White Paper - the impact of which has already been absorbed in our financial performance and expectations across FY22 and FY23:

• We have developed and rolled out ARC^TM (Advanced Responsibility & Care), our innovative, AI-driven, proactive player protection programme, which is already delivering meaningful improvements to protecting our customers;
• We have already implemented an affordability model across the UK - with soft checks on customers from as low as £100;
• We have introduced personalised staking limits for online slots;
• We terminated VIP schemes across the UK in 2020;
• We were the first industry operator to voluntarily commit to donating 1% of UK gross gaming revenue to research, education and treatment in respect of problem gamblers; and,
• We actively supported the proposal for an independent industry ombudsmen.

As a result of the proposals outlined in the GAR White Paper today, materially mitigated by the proactive actions we have already taken, we expect there to be no material change to our expectations for FY23 and an impact of less than 1% on Group Online net gaming revenue in FY24.

Jette Nygaard-Andersen, Entain's CEO, commented:

"The UK Gambling Act Review is an important step towards having a robust regulatory framework that is fit for the digital age and creates a level playing field for all operators. We welcome the clarity that it will bring to the industry and its customers. We look forward to working with the Government and the Gambling Commission on evidenced-based consultations and implementation of the proposals outlined today.

As a global and diversified business that operates in over 40 regulated or regulating territories around the world, all of which are regulated or regulating, we are firmly in favour of regulation that preserves the market for the vast majority of customers who enjoy recreational betting and gaming, whilst also ensuring appropriate protection to all players."

Enquiries:

Investor Relations - Entain plc David Lloyd-Seed, Chief IR & Communications Officer Davina Hobbs, Head of Investor Relations Aimee Remey, VP US Investor Relations Callum Sims, IR Manager	[e-mail] [e-mail] [e-mail] [e-mail] [e-mail]
Media - Entain plc Lisa Attenborough, Head of Corporate Communications Jay Dossetter, Head of Corporate PR Jodie Hitch, PR Manager	[e-mail] [e-mail] [e-mail] [e-mail]
Powerscourt Rob Greening/Nick Hayns/Sam Austrums	Tel: [phone] [e-mail]

About Entain plc

Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest sports betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction and SuperSport; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.

The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US. Entain provides the technology and capabilities which power BetMGM as well as exclusive games and products, specially developed at its in-house gaming studios. The Group is tax resident in the UK and is the only global operator to exclusively operate in domestically regulated or regulating markets operating in over 40 territories.

Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by MSCI. The Group has set a science-based target, committing to be carbon net zero by 2035 and through the Entain Foundation supports a variety of initiatives, focusing on safer gambling, grassroots sport, diversity in technology and community projects. For more information see the Group's website: www.entaingroup.com

Important notices

Certain statements in this announcement are forward-looking statements, including with respect to Entain's expectations, intentions and projections regarding its future performance, strategic initiatives, anticipated events or trends and other matters that are not historical facts and which are, by their nature, inherently predictive, speculative and involve risks and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. All statements that address expectations or projections about the future, including statements about operating performance, strategic initiatives, objectives, market position, industry trends, general economic conditions, expected expenditures, expected cost savings and financial results are forward‐looking statements. Any statements contained in this announcement that are not statements of historical fact are, or may be deemed to be, forward‐looking statements. These forward-looking statements, which may use words such as "aim", "anticipate", "believe", "could", "intend", "estimate", "expect", "may", "plan", "project" or words or terms of similar meaning or the negative thereof, are not guarantees of future performance and are subject to known and unknown risks and uncertainties. There are a number of factors including, but not limited to, commercial, operational, economic and financial factors, that could cause actual results, financial condition, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Entain's ability to control or estimate precisely, such as changes in taxation or fiscal policy, future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governments or governmental regulators, or other risk factors, such as changes in the political, social and regulatory framework in which Entain operates or in economic or technological trends or conditions, including inflation, recession and consumer confidence, on a global, regional or national basis. Given those risks and uncertainties, readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of this announcement. Entain and its affiliates, and any of its or their respective directors, officers, partners, employees, advisers or agents (collectively, "Representatives") expressly disclaim any obligation or undertaking to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by applicable law or regulation.

In particular, no statement in this announcement is intended to be a profit forecast or profit estimate and no statement of a financial metric (including estimates of EBITDA, profit before tax, free cash flow or net debt) should be interpreted to mean that any financial metric for the current or future financial years would necessarily match or exceed the historical published position of Entain and its subsidiaries. Certain statements in this announcement may contain estimates. The estimates set out in this announcement have been prepared based on numerous assumptions and forecasts, some of which are outside of Entain's influence and/or control, and is therefore inherently uncertain and there can be no guarantee or assurance that it will be correct. The estimates have not been audited, reviewed, verified or subject to any procedures by Entain's auditors. Undue reliance should not be placed on them and there can be no guarantee or assurance that they will be correct.

This announcement is being issued by and is the sole responsibility of Entain. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by or on behalf of, Entain (apart from the responsibilities or liabilities that may be imposed by the Financial Services and Markets Act 2000, as amended or the regulatory regime established thereunder) or by its affiliates or any of its Representatives as to, or in relation to, the accuracy, adequacy, fairness or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers or any other statement made or purported to be made by or on behalf of Entain or any of its affiliates or any of its Representatives in connection with Entain and any responsibility and liability whether arising in tort, contract or otherwise therefore is expressly disclaimed.

LEI: 213800GNI3K45LQR8L28

 

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