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Stuart Andrew Optimistic About Land-Based Gambling Reforms for a Brighter Future

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Get ready for a promising vision of the future as UK Gambling Minister Stuart Andrew unveils plans to rejuvenate and modernize the land-based gambling landscape. Speaking at the esteemed Bacta Annual Convention 2023, Andrew emphasizes the government’s commitment to acknowledging the profound economic significance of the gaming arcade sector. In the wake of challenges posed by the Covid-19 pandemic, surging inflation, and energy cost hikes, Andrew’s promises herald a brighter horizon for the industry.

Stuart Andrew, the esteemed UK Gambling Minister and Secretary of the Department for Digital, Culture, Media and Sport (DCMS), is painting an optimistic picture for the future of land-based gambling in Britain. Speaking at the Bacta Annual Convention 2023, Andrew expressed his confidence that the proposed modernization of the sector will play a pivotal role in securing its longevity.

Acknowledging the invaluable economic contribution made by the gaming arcade sector to local communities, high streets, and coastal towns across the country, Andrew pledged the government’s support to help this industry weather recent storms. The sector has been grappling with the adverse effects of the Covid-19 pandemic, rising inflation, and surges in energy prices.

Andrew articulated, “I recognize the commercial challenges you are facing, and I believe that the modernizing measures we are taking will help to support the move towards a brighter future. Many of you here today will be keen to understand the progress we have made on the land-based gambling proposals set out in that white paper.”

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One of the prominent proposals Andrew highlighted is the plan to adjust the current 80/20 ratio for lower-stake gaming machines to align better with consumer demands and to reduce energy consumption. While Bacta advocates for a 50/50 ratio, Andrew stressed the importance of ensuring a “genuine offer of lower-stake gambling opportunities” to maintain a safe gambling environment. He acknowledged the suboptimal situation where large numbers of machines, though underused, remain energy-intensive.

Additionally, Andrew pointed to the proposed introduction of cashless payments for gaming machines and the removal of restrictions on the direct use of debit cards. He emphasized that the government will establish a “technical framework of minimum standards” for machines accepting direct cashless payments, recognizing that the transition won’t happen overnight.

In the pursuit of a fairer regulatory landscape, the government also plans to introduce a mandatory levy on gambling to fund research and support initiatives. Andrew revealed that the proposed levy rates would vary across different sectors, with a lower 0.4 percent fee suggested for land-based venues compared to 1 percent of gross gambling yield for online gambling operators. He assured that this approach is proportionate and should not burden the land-based sector unduly.

Notably, the realization of these ambitious land-based gaming reforms hinges on secondary legislation, with the government aiming for implementation by the summer of 2024. However, Andrew underscored that the timeline is contingent on parliamentary availability and procedural considerations.

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Concluding his address, Stuart Andrew emphasized his commitment to being a receptive and open minister as he works towards crafting the right policies for a sustainable future for the land-based gambling industry.

Jerome, a valuable addition to the Gamingo.News team, brings with him extensive journalistic experience in the iGaming sector. His interest in the industry was sparked during his college years when he participated in local poker tournaments, eventually leading to his exposure to the burgeoning world of online poker and casino rooms. Jerome now utilizes his accumulated knowledge to fuel his passion for journalism, providing the team with the latest online scoops.

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FDJ’s Acquisition of Kindred Group Shaping the Future of Global Gaming

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FDJ’s acquisition of Kindred Group, facilitated by regulatory approval and strategic shareholder engagement, signifies a transformative moment in the gaming industry. This deal exemplifies the intricate balance between regulatory compliance, shareholder value, and strategic growth ambitions. As the industry stands at the cusp of further consolidation and innovation, the FDJ-Kindred transaction heralds a new era of strategic realignment and competitive positioning in the global gaming landscape.


A Monumental Shift in Gaming Dynamics

The Swedish Financial Market Supervisory Authority (SFSA)‘s approval of Française des Jeux’s (FDJ) offer to acquire Kindred Group marks a pivotal moment in the global gaming and betting sector. This green light not only accelerates FDJ’s strategic expansion but also underscores the evolving landscape of international gaming regulations and corporate alignments.

Navigating Regulatory Waters

The SFSA’s endorsement is a crucial step in FDJ’s ambitious acquisition plan, setting the stage for a public offer slated to commence imminently. This regulatory approval highlights the meticulous scrutiny and compliance standards governing mergers and acquisitions within the sector, ensuring that such transactions align with market stability and shareholder interests.

A Call to Action for Kindred Shareholders

The forthcoming Extraordinary General Meeting (EGM) represents a critical juncture for Kindred Group, with proposed statutory amendments necessary for facilitating the acquisition. This meeting, aimed at achieving the requisite shareholder consensus, signals the importance of shareholder engagement in steering corporate direction and strategy.

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The Path to Acquisition: Shareholder Conviction and Strategic Vision

FDJ’s pursuit of Kindred Group, contingent upon securing 90% of total capital, reflects a strategic maneuver to consolidate its position in the global gaming market. The offer per share, valuing Kindred at approximately €2.6 billion, has garnered unanimous board endorsement and significant shareholder backing, illustrating the alignment of strategic interests and the perceived value of this consolidation.

Activist Influence and Strategic Realignment

The role of activist shareholders, notably Corvex Management, in advocating for Kindred’s sale underscores the dynamic interplay between corporate governance and shareholder activism. Their successful campaign for board representation and strategic evaluation reflects a broader trend of active investor engagement in shaping corporate trajectories.

Implications for the Global Gaming Industry

This acquisition not only exemplifies the financial and strategic considerations underpinning such deals but also highlights the regulatory complexities and shareholder dynamics involved. As the gaming industry continues to evolve, driven by technological advancements and regulatory changes, the FDJ-Kindred merger serves as a case study in strategic growth, market consolidation, and the pursuit of competitive advantage.

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