Ladbrokes not making knee-jerk Brexit assumptions

Ladbrokes not making knee-jerk Brexit assumptions

Friday, June 24, 2016 Posted by Joanna Mapes
Ladbrokes chief executive Jim Mullen is refusing to make any knee-jerk reactions after the shock UK referendum result

Ladbrokes chief executive Jim Mullen is refusing to make any knee-jerk reactions after the shock UK referendum result which will see the gaming giant’s home country leave the European Union.

Ladbrokes has many European interests, not least a Belgian bookmaking business and interests in Spain and Gibraltar, so Brexit is potentially a big deal for the company. Indeed it has seen its share price impacted like the rest of UK industry.

However Mullen underlined the need not to second guess the implications. He said: “The Referendum result undoubtedly poses new questions and we must take time to understand and work through the full implications for our business and the betting industry before making knee-jerk reactions. We will take up the challenge of ensuring we build on the momentum we have in our business which all our colleagues are fully focused on delivering."

BetterCollective, one of the world’s bigger online gaming affiliates, thinks that the industry will recover from the shock Brexit result.

Senior Business Manager Michal Kopec commented: “Bookmakers and their suppliers are going to feel the pinch almost instantly, as many operate across the EU where prices for services will be hit by the poor pound.

“Income for many international affiliates that are rooted in the currency are going to be hit by the payments they’re taking in GBP, with many based in countries such as Denmark, Malta and Germany. This will be a huge issue in the short term, and it’ll take robust planning to weather the storm and emerge on the other side.

“On the regulatory front, bookmakers and affiliates shouldn’t be affected for now, as the Gambling Act regime is a stable one, with many organisations well briefed and prepared for any potential changes.”

However Kopec warned that Gibraltar also has potentially big challenges ahead. “Gibraltar based operators will suddenly find that they don’t have an EU licence, and it remains to be seen whether they’ll struggle to operate in major regulated EU territories such as Germany.

“It can also affect those based in Gibraltar but with operations or servers based in the EU, which means that bookmakers and their suppliers could soon be packing their bags – with Malta the likely destination.”

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