Festive break news round-up
Some of the big news stories from the holiday period including Russian moves to block egaming and changes at Gala Coral and Paddy Power
William Hill, Ladbrokes, Coral and Paddy Power all added prominent warnings to their advertising materials as part of an ongoing effort to promote socially responsible gambling.
The “WHEN THE FUN STOPS, STOP” campaign was launched on 1 January by independent gambling body the Senet Group, which all four firms are members of, and aims to promote socially responsible gambling and highlight the potential risks associated with gambling.
All TV advertising by Senet Group member companies now carry a prominent message about responsible gambling and appears online, in their shop windows, in press advertisements and other forms of advertising, making it the most visible warning yet to be carried by the industry.
Later this month, the Senet Group will launch a broader campaign to promote responsible gambling, including a major TV and radio advertising campaign.
Paddy Power kicked-off the New Year with a new look management team as Andy McCue and Johnny Hartnett assumed the positions of group CEO and online managing director respectively.
The changes, which among others also saw former online MD Peter O’Donovan assigned to a new chief product officer role, were announced late last year with McCue having spent a number of months working alongside his predecessor Patrick Kennedy during a transition period.
The Irish bookmaker confirmed the changes had come into effect on 2 January.
Russia toughened its stance on online gambling after handing the state authority for telecommunications the ability to block websites without a court order while it also introduced criminal liability for companies which violate gambling regulation.
As of 22 December 2014, Roskomnadzor is authorised to restrict access to websites without a respective court decision, meaning websites containing gambling material will be blocked unless such materials are removed from the website.
The introduction of criminal liability could also see operators that fail to comply with Russia’s strict gambling laws hit with either a fine of RUB 500,000 or three years’ worth of Russia-derived income, or a custodial sentence of up to two years.
Ladbrokes announced its retail managing director Nick Rust will take up his new role as chief executive of the British Horeseracing Authority (BHA) on 12 January, at least one month earlier than originally anticipated.
Last year Rust revealed he would be leaving the operator to assume his new role in the New Year but hadn’t been expected to join the BHA until after the release of Ladbrokes’ full-year preliminary results, which are due in February.
The announcement killed speculation that Rust was to reconsider his decision to leave the firm in order to succeed outgoing Ladbrokes CEO Richard Glynn, who is to stand down from his role later this year.
Gala Coral completed the sale of 47 of its 60 Gala Bingo halls to M&G Investments for £173.4m.
The deal will see Gala Retail become a tenant in the properties and will continue to operate bingo activities under the Gala brand.
Gala Retail has entered into new 25-year leases with M&G and has also made a payment of £34m to reduce the rent on its bingo properties by approximately £9m to £15.5m per annum.
Gala Coral said it expects to agree deals for the remainder of its properties during Q1 2015 while it continues to explore the potential sale of Gala Retail, which would see Gala Coral become an online operator only.