The number of complaints lodged against British gambling companies has increased by 5000% in the last 5 years, . This is apparently largely due to unpaid winnings and ‘failing to operate in a socially responsible way’.
The overall performance of the industry appears to have suffered in recent years as 131 companies out of the top 735 have been making a loss for two consecutive years.
The Plimsoll analysis gives every company in the industry a rating which ranges from ‘strong’ to ‘in danger’. The analysis of all UK gambling companies shows that 50% of the market is rated as either ‘in danger’ or ‘caution’.
With the industry’s overall performance slipping, could companies simply be trying to improve their performance and grow through other means such as stricter payout criteria or more aggressive marketing and retention strategies?
Whether this is a deliberate strategy or not, how effective it is remains to be seen and it appears to be jeopardising the industry’s reputation.
A more effective means of growing in a declining market would be through acquisitions. Plimsoll carefully weights a number of metrics in a company’s performance to give them a unique ‘attractiveness rating’ and has found that out of 735 gambling companies in the market, there are 163 which are rated ‘highly attractive’ for acquisition. This could allow companies to grow their market share quickly and effectively.
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