Chisholm See Profit Slump in 2023 Following Regulation Changes
LISTEN TO THIS ARTICLE:Chisholm, the UK-based high street bookmaker, has announced its operating profits for 2023 saw a decline of almost 50%, which it blamed on UK government regulation.
The bookmaker operates 34 shops in the North East and Cumbria and reported it had a tough trading period in 2023, which saw turnover fall by 4% to £29.1m last year. However, due to high inflation, which had an adverse impact on costs, operating profit dropped by 49.2% to £148,483.
Leadership at the bookmaking chain says that in order to cut costs in the company, the betting shop has reduced opening times. The bookmaker says it hasn’t seen a significant drop off in turnover because its customers have adjusted the times when they visit the betting shop. By taking this action, Chisholm says they may be able to prevent or reduce the likelihood of betting shop closures.
Related: UK Gambling Reforms and Their Business and Economic Implications
Above Inflation National Living Wage Increase
The bookmaker points to the UK government increasing the National Living Wage by more than the inflation figure as the main reason for its decline in operating profits.
The relatively high inflation rate during 2023 has dragged up turnover and has not had the negative effect that might have been anticipated. However, the continuing inflation increases in the rate of the National Living Wage continue to negatively impact the business due to our geographic location in the North East of England.
Chisholm Expresses Concerns over Impact of Draconian Regulations
The retail gaming operator stressed that it is concerned over some of the “draconian regulations” proposed in the UK government's Gambling Act Review and wants meaningful dialogue in the consultation period. It is concerned that some of the measures being proposed in the White Paper could spell financial disaster for many gambling companies.
Chisholm says it believes in the drive for responsible gambling in the UK jurisdiction and creating a safe place for players free from any gambling-related harm. However, it fears some of the proposals in the White Paper could drive many gamblers to use unregulated gaming operators.
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