British Gambling Industry Welcome Rescue Package

British Gambling Industry Welcome Rescue Package

The Betting and Gaming Council, an industry regulatory body, has welcomed the “unprecedented” financial package by the governance, albeit cautiously. The financial relief will help support the economy in the midst of the coronavirus pandemic.

Industry still cautious

On Tuesday evening, the government announced a relief package for the industry. However, the BGC is still looking for more clarity on this matter. The relief package could help in saving thousands of jobs in the gambling industry, which has been impacted heavily because of the coronavirus outbreak. The industry sought assistance with employment costs on priority and asked for some business rates relief. It also sought more time from the government in paying corporation tax and duties.

British Gambling Industry Welcome Rescue Package

The industry has been reeling because of the recent coronavirus pandemic across the globe. Recently, the news of British racing suspension from Wednesday sent shivers to the bookmakers who have already lost millions of pounds in market capitalization. Some games have been canceled while racing will remain suspended until April.

Michael Dugher, the chief executive of BGC, welcomed the move by the government and said that it helps in addressing some concerns of hospitality and leisure businesses. However, he noted that the industry is

“disappointed that there is no direct support for employment costs and remain concerned about the devastating impact on our members and their colleagues. We will continue to work with the DCMS and HMT to ensure the financial viability of our members.”

Companies continue experiencing troubles

Ladbrokes Coral and Paddy Power Betfair owner GVC Holdings were amongst the worst hit companies in this situation, alongside other major operators like William Hill and Flutter Entertainment. Their earnings could be severed by over £100 million apiece which could be terrible for the entire industry. Their monthly earnings could also be reduced by tens of millions of pounds each month as horseracing remains suspended and several betting shops shut their doors.

Share prices for these companies continued to fall Tuesday as well. For William Hill, the stocks nosedived 26.5% while GVC shares fell by over 12%. Flutter Entertainment experienced a modest rise in share price but failed to gain momentum at the markets. The BGC noted that employers are facing “unprecedented financial pressure” because of the pandemic which has had a severe impact on the hospitality and leisure industries. It also highlighted how governments in France, Spain, and Denmark announced relief packages for their businesses. The British government also followed suit and announced loans worth £330 billion.

sherlock

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.

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