William Hill is reviewing its Australian business in light of gambling regulation changes
Bookie William Hill had begun a strategic review into its business in Australia, as the business comes under more pressure from new regulation.
The group said this morning that its Australian arm had been affected by reduced credit betting volumes following a ban on bookmakers offering lines of credits.
Regulation is only set to increase, as the Australian government has committed to a crackdown on problem gambling.
William Hill said a point of consumption tax was likely to be introduced, putting profitability under further pressure.
Chief executive Philip Bowcock said this morning that the group was “continuously improving how we enable customers to gamble responsibly”.
William Hill also announced good momentum in the UK and US, pushing its full-year adjusted operating profit projection above expectations. Profit it now expected to reach about £290m, marking an increase of 11 per cent on the previous year.
“After a solid year in the face of regulatory pressures and competitor consolidation, William Hill continued the good run of form in the final quarter and can now look forward to a World Cup year,” Neil Wilson of ETX Capital Markets commented.
He added that aside from potentially walking away from its Australian business, William Hill could also be in the market for a wider tie-up.
“William Hill remains the laggard here after the Ladbrokes and GVC deal. Given the consolidation in the industry it would no surprise to see William Hill enter into a transformative merger at some stage this year.”
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