Drop in revenue
Sales for William Hill owner 888 dropped 8% following the introduction of safer gambling rules, such as affordability checks, in the UK. The betting company said sales dropped to £1.71bn ($2.17bn) in 2023 compared to £1.85bn ($2.35bn) the previous year.
The company’s UK and Ireland segment saw online revenue drop by 8%
888 partly blamed new gambling measures put into place designed to protect vulnerable players and tackle problem gambling. The company’s UK and Ireland segment saw online revenue drop by 8% to £658m ($834m) in the period as a result.
888 also said its revenue dropped by around £80m ($101m) since moving away from unregulated markets in 2023.
The company confirmed on Tuesday that it will make redundancies to counter the issues. Speaking with iGB, a spokesperson said: “Regrettably, some roles will be made redundant across some of our locations. We will be offering our full support to those colleagues who are impacted.”
A chaotic 2023
New 888 CEO Per Widerstrom introduced cost-cutting measures in December amounting to £30m ($38m).
more proactive in adapting to changes in regulation and technology”
After closing betting operations in Bulgaria and making redundancies overseas, Widerstrom said that the company needed to be “more proactive in adapting to changes in regulation and technology,” adding that financial performance needed to improve.
The setback for 888 comes after a hectic 2023 for the betting company.
Last March, 888 lost its place on the FTSE 250 index for the London Stock Exchange after its shares dropped 72% in 12 months. That same year, the company also lost its CEO, was hit with a record fine, and endured a money laundering probe.
Gambling industry analysts Regulus Partners said that with £1.6bn ($2.03bn) of debt and continued regulatory uncertainty, 888 needs to take drastic action to survive.
Gambling reforms
In April, the UK government introduced new gambling rules under its gambling white paper. Even though the measures aren’t law yet, some betting operators such as 888 have started implementing them.
Some of these reforms include average loss background checks that will take place when a player hits a net loss of £125 ($156) per month or £500 ($622) per year. Another is a limit for online slot staking of between £2 ($2.49) and £15 ($18.67) per spin, with those under 25 facing a lower limit.
Many, however, have argued that the affordability checks are a “complete mess” and that they could drive customers to the black market.