Flutter Entertainment, the group that owns the Paddy Power and Betfair brands, has stressed its commitment to responsible gambling despite a fall in profits of over a third during 2019.
Citing tax and regulatory changes, Flutter announced a 15 per cent drop in EBITDA to £385m (£451) for FY2019, with profits before tax falling by 38 per cent to £136m (£219m).
The company stated that following approval in Australia, it expects consent from authorities across the globe for its mega-merger with The Stars Group, owners of Sky Betting and Gaming, to allow for completion of the deal in either Q2 or Q3 2020.
The proposed dividend share of 200p remains identical to 2018.
Flutter’s chief executive Peter Jackson stated that 2019 was a “very significant year” for the company, given further expansion in the developing US market.
With the restriction of maximum stakes to £2 on FOBTs in the UK, Flutter estimated that this cost its retail operation £30m last year.
However, the company stressed within its financial report the belief that more important than short-term financial losses is a continued responsible gambling drive.
“To better protect potentially vulnerable customers and to put our business on a more sustainable footing, it is clear that we must do more in this area both as an operator and as an industry,” Flutter's report stated, going on to detail new technology monitoring player behaviour and a three-fold increase in the size of its responsible gambling team over the past 18 months.
“The results of these (responsible gambling) initiatives have been encouraging to date with an 84 per cent increase in customers choosing to set deposit limits while delivering a 56 per cent increase in real time contact with customers.
“Notwithstanding the progress made, we have more to do and we must continuously seek to raise our standards when it comes to responsible gambling and compliance procedures. For example, as part of our ongoing review of business relationships, we have taken the decision to stop taking business from a number of exchange B2B partners where we felt their compliance policies were no longer sufficiently aligned with those of the group. This decision is likely to lead to a reduction in our exchange revenues during 2020.
“Collaboration between industry leaders is essential to put the sector on a more sustainable footing. We must promote a mindset that encourages a race to the top when it comes to responsible gambling best practice.”
