William Hill owner 888 hoping for 'level playing field' after white paper is published

William Hill's parent company 888 said on Friday it was hoping for "a level playing field" to emerge after the government finally published its gambling review white paper.

888, which completed the acquisition of William Hill in July last year, reported falling online revenues as it issued its annual results for 2022, and a trading update for the first three months of 2023, with safer gambling measures continuing to have an impact.

The company had already flagged up its 2022 figures, with pro forma group revenue down three per cent year-on-year at £1.85 billion and adjusted earnings of £311 million, up 15 per cent.

William Hill's betting shops had helped to offset a 15 per cent decline in online revenues during the year.

Total revenue of £446m for the first quarter was down five per cent, with the company saying momentum in Spain and Italy and a continued strong performance in retail had partially offset a nine per cent fall in online revenue in the UK and Ireland.

The company added that the Cheltenham Festival had helped boost the number of active players, with an increase of 15 per cent during the meeting and all-time highs for bets per minute. 

In the announcement, 888 said it had increased the level of safer gambling interventions it carried out, including lowering thresholds for intervention and stepping up affordability checks, which would position it well for when the much-delayed white paper was published, possibly after parliament returned from the Easter recess on Monday.

Phil Walker, UK managing director for 888, said: "We have been calling for consistent regulation and a level playing field for some time, something that the whole industry in the UK can build from. That is what we are hoping for and expecting from the white paper.

"We have taken a number of proactive steps we feel will anticipate some of the measures that will be in the white paper.

"There's no guarantee until we see the actual drafting but I believe we are well positioned. A level playing field benefits the whole industry because consistent regulation for the next five to ten years is exactly what we need."

888 has had a turbulent start to the year with the departure of its chief executive Itai Pazner and a record £19.2 million penalty handed to William Hill by the Gambling Commission.

Pazner left abruptly in February after more than 20 years with the company, while at the same it was announced that 888 was suspending its VIP activities in the Middle East over failures in its anti-money laundering processes.

888 said it was making "good progress" with its search for a new chief executive with Lord Mendelsohn acting as interim executive chairman. Chief financial officer and executive director Yariv Dafna, who had been due to leave 888 at the end of March, is remaining in his posts until the end of the year.

The company also said its internal investigation into the issues in the Middle East had concluded and that there was likely to be a £25-30m impact on revenues as a result this year.

Lord Mendelsohn said: "The combination with William Hill transformed the group and brought together two exceptional and complementary businesses to create one of the world's leading betting and gaming businesses.

"The group’s financial performance in the period primarily reflected the extensive actions being taken to drive higher standards of player protection. While recent compliance issues in the Middle East were very disappointing, they have underlined the importance of our enhanced and proactive risk management framework."

He added: "In 2023 we remain on track to deliver higher profitability as we deliver against our clear strategic priorities."

888's share price has fallen in recent months but it bounced back following the announcement to 73.85p late on Friday afternoon, up nearly 20 per cent.

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