Bet365, the online betting company possessed by private owners which is located in Stoke, stated a profit worth £91m earned prior to payment of tax for the fiscal year 2011 which concluded on 31st Mar. 2011, almost one year back. And during the current week, Bet365 stated a profit rise of 22% worth £116.5m on the incomes of £721.8m, which rose from £501.4m. Similarly, there is rise of 45% in the income returns which came up to a total value of £12.4b for a period of one year which concluded on 31st Mar. 2012. The company could have earned £5.8m more profits in case it didn’t have the biggest share in the money-losing Stoke City football club.
There were chances for Bet365 to earn even profits higher than this. This could have happened if it would have followed the footsteps of its contestants based in UK and had shifted its Headquarters to Gibraltar or Alderney or Isle of Man. It is noteworthy that the latter two come in the category of authorized committees.
Due to their agreement to continue their existence in Stoke, Bet365 has to pay a £20.3m company tax bill which increased from £18.5m during past year. In addition to this, the company had to pay betting tax as well as VAT to the tax authorities of UK which resulted in a total massive amount of £130m to be paid by the company. However, the company will not have to pay any extra taxes at the time when fresh licensing rules are enacted by the UK government due to existence within the boundaries of the country. Apparantely, the company is in a position to better their foundation because the UK government is proposing to provide a 5% tax exemption to the betting companies in the form of an enticement.
During the last one year, Bet365 has paid out £51.19m in the form of salaries to its employees, which is an increase of £3m as compared to last year. The reason behind this rise is the increase in number of employees from 1,673 during past year to 2,151 during current year. Denise Coates, the originator of Bet365 asked for a total pay package worth £6.3m during the past year. In addition to this, she gets a half-share from the bonus payments also which implies she will get an additional amount worth £20.1m during Christmas. Similarly, John the sibling of Coates gets a £10m bonus and her father Peter gets £3.1m bonus.
In the meantime, the figures of the gaming industry for the fiscal year 2011-2012 which concluded on 31st Mar. 2012 have been made public by the UK Gambling Commission. There was only a rise of £0.2b in the gross gaming yield or GGY which came up to £5.8b during current year. The percentage contribution of other factors to the GGY followed the pattern as 52% by local betting, 15% by casinos, 12% by UK-authorized distant betting, 11% by Bingo, 6% by arcades and 4% by lotteries. The percentage contribution to GGY by the same factors during the fiscal year 2010-2011 was local betting rose by 2%, casinos rose by 9%, bingo rose by 1%, lotteries rose by 35%, distant betting rose by 8% and the only factor which witnessed a downfall was arcades which was down by 10%. There was an 8% reduction in the volume of workers in all the gambling divisions which came down to 109, 666. Out of these, 54,449 workers were recruited in the local betting industry.
There was a decline of 10% in the number of gaming machines working all over UK during the same fiscal year. At the same time, there was an increase of 6% in the total GGY. There was an increase of 3% in the total number of gaming machines in betting shops which came up to 35,852. This increase includes total number of working machines which rose from 22% to 26% which is liable for total machine GGY which increased from 64% to 67%. All the shops are marked with Category B2 machines on which bets up to £100 on each rotation are permitted. These gaming machines are thought to be quite risky for England by the Panorama producers. The direct betting GGY worth £1.394b which was down 6% was closely outshined by the total GGY of machines in betting shops worth £1.447b, which was up by 11%.
The involvement in gambling increased from 56.2% to 58.1% on the whole. There was an increase from 11.2% to 12.2% in the number of gamblers who laid wagers online. However, there was a fall from 5.9% to 5.4% in the number of distant gamblers excluding those who betted completely on the National Lottery. The income from distant gambling at the casino operators controlled by UK, increased by 13% and reached £15.173b. The contribution of betting to it was £14.658b which rose by 12%, £487.9m contributed by casino which was up by 46% and just £27.14m contributed by bingo which was only 1% up. There was an increase of 8% in the distant GGY which reached £717.16m. It is noteworthy that casino GGY increased by 52% to £19m, betting increased by 29% to £636.85m, bingo and betting trade group decreased by 9% to £2.04m and 62% to £59.27m respectively. It exhibited the overseas shifting of Betfair during the first four months of the analysis.