Bally’s confident Gamesys Group can withstand effects of UK Gambling Act

Article by : Charles Perrin Aug 11, 2023

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Bally’s Corporation is adamant that Gamesys can withstand the impact of the regulatory review of the 2005 UK Gambling Act.

With a review of the 2005 Gambling Act already in full swing, it is expected that significant changes will take place in the next few years.

And US entertainment company Bally’s, which has several gambling assets, repurchased Gamesys Group in 2021. At the time, the UK government was leafing through regulatory reforms that would upgrade the UK Gambling Commission to meet the constant change in the digital landscape.

With a White Paper published, many discussions will be held with gaming companies about how to proceed to make things fairer for the consumer.

And Bally’s is eager to have its say while ensuring Gamesys Group thrives.

Bally’s involved in the conversation

Bally’s wants to chip in with the consultation process in full swing with its contributions.

It has its own views on how gambling should be conducted moving forward. This point was emphasized by the company’s CEO, Robeson Reeves, who insists Bally wants to be a positive influence.

He said: “We continue to review the proposed measures and will work constructively with both the Government and Gambling Commission to find an effective solution which ensures that reforms are appropriate and guarantees a safe and sustainable future.

“As we discussed on our last earnings call, we’re in a strong position as we’ve been preparing our business strategy and compliance for some time. We embrace regulation and recognize that gaming is a public-private partnership.”

Some regulatory changes are forcing competitors to leave the UK market, but Bally’s perceives the UK as central to its success.

Sweeping reviews

In some respects, the gambling review will bring about sweeping changes, but arguably these are crucial to improve betting conditions for consumers and operators.

Among the ideas that the Gambling Commission has floated include:

• Imposing stake limits for players using online slots (stakes could be capped at between £2 and £5).
• Appointing an independent ombudsperson to act as a go-to for customers should they be unfairly treated at casinos.
• Having a better-funded and watertight regulator to stamp out all illegal gambling activity and promote safer gambling measures.

And the time for Bally’s to make their voice heard is now. Andrew Rhodes, Gambling Commission CEO, hailed the gambling reforms earlier this year as a “once-in-a-generation opportunity.”

He said: “The review is a once-in-a-generation opportunity to deliver positive change for gambling in Great Britain and all people impacted by it.

“Given the correct powers and resources, the Gambling Commission can continue to make gambling safe, fairer, and crime-free.”

In a position of strength

Of course, it is eminently better to throw your weight behind gambling changes as a casino operator if you speak from a position of financial strength.

That applies to Bally’s, who have been buoyed by their Q2 financial results, which indicated that revenues shot up by 10% to $ 606.2 million compared to last year’s figure of $551.5m.

Meanwhile, total gaming revenue was at $493.3m, up 8% from the previous figure of $455.1m, and Bally’s casinos and resorts have experienced a surge in popularity.

And even preliminary Q4 results revealed earlier this year suggest that the final quarter could see Bally’s pull-in revenues of over $576m. In comparison, EBITDA has been adjusted to $164m, representing a 9% increase from the previous figure of $148.5m.

Reeves has managed to steer the ship in the right direction after taking over from Lee Fenton in March, and the impressive financial figures are a testament to this.

Final Thoughts

There are strong headwinds that some UK gambling operators are feeling, and the process of bringing about changes will not be expedited.

That said, Bally’s is a reputable gambling company that is well placed to engage with the UK Gambling Commission to ensure it can compete effectively in a crowded market in the future and provide value for money for its customers.

While they have dismissed any fears concerning Gamesys Group, if any lingering fears were to surface, that would be completely understandable.

Although the UK Government has stated how it intends to enforce changes from the Gambling Act review, how things will transpire is another matter altogether.

But with Bally’s getting involved in the conversation, that should only be seen as a good thing. And as their financial figures illustrate, they can continue to make significant roads in the UK market in the months and years.