"So in terms of the racing industry's fears around affordability, if affordability checks are introduced in a way that impacts lots of customers in an unjustified way that could be very difficult.
He said: "The important thing from my perspective is it does sound like the government is planning to take an evidence-led approach to this, which I think is going to be very important in terms of making sure that we do the right thing for the vast majority of our customers but making sure we also put in place the checks that identify customers who get themselves into difficulty and help them out. Jackson felt Flutter's approach to the issue could act as a framework for ministers. So we sort of ended the year where we expected."Īffordability checks are expected to figure in the government's gambling review, with concerns within British racing that its revenues could be hit by £60m or more per annum if the measures are too intrusive. However he added: "Just to put it in context we had very strong gains in terms of results in our first, second and third quarters in the UK and Ireland and then effectively we gave it back to the customers in the fourth quarter. Jackson said engagement had returned to pre-pandemic levels but he expected the UK market to be "flat" year on year.Ĭhief financial officer Jonathan Hill added that 15 out of 16 favourites winning during one round of Champions League football matches was one of the events that had contributed to a "pretty tough time in the football calendar". "While these improvements will continue to impact our near-term performance, we believe they are the right steps to take for the long-term sustainability of our business." "Over the past year we have introduced significant measures including our affordability triple step and net deposit limits for customers under the age of 25. He added: "We also saw some impact from the safer gambling improvements we have been implementing ahead of anticipated regulatory changes. The company also reported that an "unprecedented run of customer-friendly sports results in 2021" cost the UK and Ireland division £232m in revenue year on year, £149m in the fourth quarter alone, while the relaxation of Covid-related restrictions led to a reduction in customer engagement.Ĭhief executive Peter Jackson said Flutter had seen some "significant headwinds" in the second half of the year.
The company also launched a 'Play Well' strategy this week.įlutter said the new safer gambling measures in the UK and Ireland impacted revenue by £93m, £37m of which related to the fourth quarter of the year. Operators have been launching safer gambling measures with the government's gambling review white paper looming, with Flutter introducing a 'triple step' approach to affordability checks in the UK and Ireland as well as some stake limits for online slot games. On a reported basis Flutter lost £288m due to charges linked to its merger with the Stars Group in 2020. The company's overall adjusted revenues increased 17 per cent to £6bn in 2021, while adjusted pre-tax profits fell 22 per cent to £620 million. Shares in Flutter Entertainment, the parent company of Paddy Power, Betfair and Sky Bet, fell sharply on Tuesday as safer gambling measures and a run of punter friendly sports results hit profits.įlutter shares were down nearly 13 per cent at 9,404p after the gambling industry giant revealed adjusted Ebitda (earnings before interest, taxation, depreciation and amortisation) had fallen 18 per cent to around £1 billion in its preliminary results for 2021.