Bally’s CEO states slot stake limits will create “greater longevity” for the business

Bally’s CEO Robeson Reeves has stated he is not concerned about the impending regulatory changes coming to the UK, namely, online slot stake limits, instead suggesting the measures will lead to a more sustainable business.

Reeves gave his thoughts on the forthcoming changes, as proposed in the white paper into the Gambling Act 2005 review, following the publication of the operator’s Q4 2023 and full-year 2023 financial report.

The report revealed that UK revenue increased by 5% year on year for the Rhode Island-based operator, with all-time high actives during the final quarter of the year, which the firm stated was due to lower acquisition costs and improved customer engagement and retention.

Bally’s also stated that its share of the UK igaming market is around 15%, with slots market share around 17% alone. 

With the UK continuing to perform well, the CEO was questioned on the regulatory headwinds, which could, in theory, result in lower revenue as higher online slot stakes are banned.

Reeves responded that the operator had been working closely with the UK government and Gambling Commission (GC) and he felt that the subsequent conversations were “rational” and had a “genuine focus on protecting the consumer”.

Online slot stake limits are one aspect of the white paper that has come under scrutiny, with a report from The Guardian claiming the threshold will land at £5 for those over 25 and £2 for those under 25. 

The consultation into stake limits, which closed in October, also proposed potential limits ranging from £2 to £15, with under-25s faced with either £2, £4, or unspecified limits.

On these proposed limits, Reeves remarked: “I think that you may have seen headlines released today and over the past few days on stake limits online. 

“What the press is saying, and I suspect it will be very close to this, is that under-25s will have a £2 stake limit and over-25s will have a £5 stake limit. [This will] probably be implemented … somewhere in the July to September window. 

“I feel good about that. All that ends up resulting in is much more sustainable play. Which means that there’s greater longevity for this business,” he added.

Regarding how the operator is preparing for the proposed changes, Reeves explained: “We’re very flexible when it comes to how we operate our business. So I’m not concerned at all about these regulatory changes. I think it [changes] makes for a better market.”

Reeves added that he expects Bally’s to secure greater market share in the UK as a result, due to the fact the impact of the changes will be more severe on smaller firms.

Reeves continued: “When I look at our performance in the UK, I feel great. Even if there are impacts, we will be rolling out sports into the UK market, and we will also be investing further into our Bally’s brand in that market.

“I always take the lens in saying we are the biggest igaming operator in the UK without sports. This will aid the funnel. The same principles to North America as apply to the UK, so I feel good about the UK.”

Finally, Reeves gave analysts some more colour on the UK player base and how Bally’s has begun 2024 after strong growth at the end of 2023.

He said: “We’re seeing very stable spending patterns from our players. We don’t have many big players, so it’s a consistent consumer. We’re getting a high enough volume of new customers into the funnel. 

“We’re not seeing a slowdown. It was definitely the usual sort of January, post-Christmas pause, but we understand that in all our numbers, and it happens every year. 

“We’ve seen good trends through the end of January and into February, as expected. I feel very comfortable about the consumer in the UK,” he added.

Speaking to EGR earlier this month, Rank Group CEO John O’Reilly said should a £5 stake cap be introduced, it could result in a £4m impact to the Maidenhead-based firm’s profits.