William Hill is considering withdrawing from the Australian betting market "in the face of mounting regulatory pressures," according to Dominic Walsh of the LONDON TIMES. Britain’s second-biggest bookmaker said that it "launched a strategic review of its Australian operations," which it admitted could include a sale of the business. In a statement, William Hill said, "Given the credit betting ban in Australia and the likely introduction of a point of consumption tax in a number of states, it is clear that profitability will increasingly come under pressure." A sale would "almost certainly spark a big write-off given the sharp fall in the value of its Australian business as a result of the impact of regulation" (LONDON TIMES, 1/15). In London, Bradley Gerrard reported the region was "seen as a growth opportunity" for British firms because Australia had passed laws to regulate gambling, making it a "consistent source of revenue." But now, Australia is "considering a new levy on gambling revenue" that "mimics" the U.K.’s point of consumption tax. This allows a government to tax bets made by its country’s residents "regardless of where the gambling firm is based" (TELEGRAPH, 1/15). In London, Katie Martin reported William Hill said that adjusted profits in Australia for '17 were 11% higher than in the previous year, above forecasts at around £290M, "buoyed in part by a good result for the house from football and horseracing results." Final results will be released toward the end of February (FINANCIAL TIMES, 1/15).
