TLDR BDO director Ollie Woodward says UK gambling operators feel “resilience and bullishness” despite pressure from the tax hike. The April Remote Gambling Duty increase pushed operators to review their cost base and staffing. Entain announced job cuts affecting up to 500 roles, but says the move is not tied to the tax hike. Bally’s Intralot acquired Evoke to expand its presence in Europe after the tax change. BDO says regulated revenue now attracts higher value in gambling deals than unregulated revenue.
UK gambling operators are rethinking their costs and looking at possible deals after the April Remote Gambling Duty increase. That’s according to Ollie Woodward, a corporate finance director at BDO.
Woodward spoke to iGB during iGB Live’s first M&A Summit in July. He said operators are focused on the sustainability of their player base.
Entain announced a restructuring last week. The plan could cut up to 500 roles worldwide. The company said the changes are not a response to the UK tax increase.
Other companies see the tax hike differently. Bally’s Intralot bought Evoke after that company faced struggles tied partly to the tax change.
Bally’s Intralot CEO Robeson Reeves told analysts in April that the deal would support the company’s growth plans in Europe.
Woodward said these kinds of restructuring and deal talks are now a top priority for many operators. He said this topic makes up a large part of BDO’s current gaming deal work.
Operators Look at People and Technology
Woodward said the tax hike arrived at a time when many businesses were already reviewing their costs using artificial intelligence tools.
He said larger, established operators are looking closely at staffing and technology. They want to find ways to improve their profit margins.
BDO’s M&A team is currently working with about five