888 Holdings CEO Confirms Superior US Gambling Regulations Compared to UK
Compelling communication is believed to be the cornerstone of a thriving relationship. A senior executive at 888 Holdings asserts that the UK regulators could benefit from taking a page out of their US counterparts' book when it comes to keeping an open dialogue with the entities they supervise.
During a conference call primarily focused on the company's exceptional first quarter results, 888's CEO, Bryan Mattingley, criticized the UK Gambling Commission for their lack of communication with perspective licensees as compared to their American counterparts. This comes as the UK braces itself to enforce new regulations and tax schemes affecting the gambling industry within its borders.
It is worth noting that operating in the US means interacting with various regulators in each state. The major casino conglomerates attempting to win licenses in Massachusetts have experienced vastly different dynamics when negotiating with the comparatively inexperienced commission there, in stark contrast to the veterans in states like Nevada and New Jersey. Nevertheless, Mattingley has observed a significant disparity in communication between the two nations.
Communication Gap with UK Regulators
Mattingley mentioned that while they conversed with regulators in New Jersey and Nevada "almost on a weekly basis," their interaction with the UK Gambling Commission was tragically lacking. Although he acknowledged that the Commission was generally doing an admirable job in regulating the industry, he expressed concern regarding their "rushed timeline."
Mattingley also touched on 888's objection to one of the new taxes being implemented in the UK.
"We are in continuous dialogue with our colleagues in Gibraltar, and we are of the belief that any regulation is advantageous for our industry provided that the regulation is designed to safeguard the consumer and not to introduce the point of consumption tax," Mattingley emphasized.
The latter phrase refers to the 15% tax that online gambling companies must pay on all bets placed by UK residents. Dubbed the point of consumption tax because it's based on where customers reside rather than where the corporations are headquartered, this duty will enter into force in December of this year.
888 Chalks up Record Revenue
The primary objective of the conference call was to publicize the company's substantial earnings. In the first three months of 2014, 888 Holdings raked in $114 million in revenues, their highest quarterly figure ever. This was a notable 11% increase from the $103 million they generated in the same period in 2013.
Online casino games remained their main revenue generators, despite raking in $54 million. Poker revenue climbed 4% to $25 million.
Mattingley also commended 888's achievements in the newly regulated US online gambling markets. He reiterated that 888 is the only company able to capitalize on the online poker player sharing agreement between Delaware and Nevada, suggesting their strategy to obtain licenses in as many locations as possible is paying off.
Mattingley took particular pride in the joint venture between 888 and Caesars, which controls a 50% stake in New Jersey. He, however, highlighted a report indicating that only around 10% of New Jersey residents were aware that online gambling was legal there, suggesting that the industry needed to do more to improve public awareness.
"We must ensure people are familiar with the legality, security, and safety aspects of online gambling," Mattingley stressed. "It's something we have to address not only as individual brands but also as an industry."
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