Overseas firms seem to be effecting the uk firms,and with driving the bookmakers overseas for tax reasons,will mean less and less gets back into the local economy/racing.
WILLIAM HILL reported resilient interim figures for the first four months of 2009 on Thursday, with Group net revenue rising 6.5 per cent.
However, any anticipated positive Grand National effect - expectations described by Hills as "hyperbole" - was dissipated by losing one third of British and Irish horseracing at the start of the year through thesevere weather and a Cheltenham that went the way of punters.
Over-the-counter gross win in the shops actually fell five per cent, although overall shop win rose two per cent thanks to a strong football performance, but especially FOBTs(casino machines), which delivered a 14 per cent increase.
Online, seeing the benefit of integration with Playtech, performed particularly well as revenues jumped ten per cent on a like-for-like basis.
Telephone profits, however, fell by 31 per cent in the period, badly affected by Cheltenham losses and increased competition from overseas operators operating in a more favourable tax climate. However, telephone betting only accounts for three per cent of Group business.
Hills chief executive Ralph Topping said: "Although the economic and competitive environment remains challenging, our results show continuing resilience. Integration of our online business is progressing, with an encouraging increase in the number of customer accounts, and we look forward to reaping the full benefits of this developing business."
He said horseracing business remains under pressure, and a growth in football profits came from small staking punters trying their luck at big win accumulators.
Topping remains concerned about overseas competition and British taxation and while pleased at the early levy deal and relieved the Budget did not contain any major setbacks, still argues hundreds of betting shops remain vulnerable and the industry would be better served under the wing of Department of Business, Enterprise and Regulatory Reform, rather than the DCMS.
Noting a DCMS led review at creating a "more level laying field", Topping predicted: "This review is a missed opportunity. We know and the government knows that their tax regime is a huge competitive burden for UK-based bookmakers. We know, and the government knows, that if they allowed the UK industry to flourish, they would have higher tax revenues, more jobs - and incidentally more money for racing.
"But once again we are going to have a partial review of issues which are either virtually impossible to solve [overseas operators] or largely irrelevant [integrity].
"Let's get the Treasury involved in this and talk with those in government who actually see the big picture about a modernised tax regime for a world class industry. The opportunity is out there - we just have to have the guts to take it. But quickly . . ."
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