The British Gambling Authority published its yearly report for the financial period ending on March 31st, 2023, showcasing a reduction in National Lottery expenditures.
The overall operational expenses of the National Lottery reached £2.4 million, a decrease of £178,000 compared to the previous year. Simultaneously, the cost of National Lottery games was £19.1 million, down from £23.6 million in the preceding year.
The procedure of selecting the fourth National Lottery license holder was finalized during this financial year. The license was granted to Allwyn Entertainment in September 2022 by the Authority, concluding the term of the previous license holder, Camelot.
Following the identification of Allwyn as the favored applicant in March 2022, Camelot initiated legal proceedings against the licensing process. This legal action was withdrawn in September of the same year.
During the year, operators paid £20.9 million ($26.2 million/€24.3 million) in penalties. Moreover, £39.2 million was paid in regulatory settlements, totaling £60.1 million.
William Hill Group received the largest regulatory settlement ever in this year, amounting to £19.2 million. The second-highest regulatory settlement of the year was recorded against Entain, at £17 million.
A total of 24 operators were subject to enforcement actions during this period.
Furthermore, five commercial permits and one individual management permit were taken away.
The highly anticipated Gambling Act White Paper was published, signifying the conclusion of the Commission’s fiscal year, as the UK gambling regulator enters a new phase. Following the publication of the White Paper, Tim Miller, the Commission’s Director of Research and Policy Enforcement, stated that the regulator would have “little leeway” to consider policies unrelated to the White Paper in the years to come.
The Commission noted in its yearly report that the effect of the White Paper on the industry remains to be determined.
“The long-term effect of the Gambling Act Review White Paper on the industry is uncertain, but we will continue to monitor and assess its potential impact on our future income,” the report stated.
Income increased considerably year-over-year
The report examined the Commission’s performance over the previous year, as well as operator statistics and financial performance.
The Commission generated £26 million in income from fees and other sources during the year, an increase of 28.8% from the previous year.
This included £22.8 million in annual operator license fees, £2 million in operator application fee income, £760,000 in personal license fees, and £390,000 in other income.
Expenditure decreased by 9.3%
In terms of costs, total other expenditure amounted to £20.9 million. This included various expenses such as professional fees, research costs, and external legal fees. Staff costs totaled £19 million.
The remaining expenses comprise pension obligation interest, depreciation and amortization, and concluding lease depreciation. In sum, the quarterly expenses reached £40.9 million, a decrease of 9.3%.
Taking into account expenditures, the total net spending for the year amounted to £14.8 million, a positive change from the net spending of £24.9 million in 2021-22.
Interest and financing costs produced a positive contribution of £0.34 million. After factoring in other comprehensive expenses (£23,000), the net spending for the year was £14.4 million. This represents an improvement of £10.5 million compared to the previous year.
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