The newly announced deal that would involve the merging of Paddy Power as well as Betfair have received a warm welcome in the market with Betfair’s shares going up by 18% while those of Paddy Power rising by over 15%. On the other hand, there has been a decrease in shares for both William Hill and Ladbrokes.

A writer Jonathan Guthrie of the FT Lombard column claimed that the association is aimed at maximising profits deemed to reach over £5bn. He claimed that both firms have to do well considering their multifacetedintegrations of systems as well as cultures. However, this should not be given so much hope as it may end up like the case that was portrayed by the amalgamation of Quantities Easing which Lombard was giving much anticipation.

According to Cavendish Corporate Finance, there are more deals that are expected to be strike between various betting firms. Among them the Bwin and GVC/888 deal awaits as well as Ladbrokes and gala Coral deal.

Jonathan Buxton who is the Head of Consumer and a partner at Cavendish Corporate Finance claimed that the new merger between Betfair and Paddy Power forms the beginning of other expected deals to be strike by various betting companies. Increased regulations as well as tighter overheads are seen as two main loggerheads that affects M&A. This comes even after the betting business playing a bigger role in UK’s GDP with over £2 billion annually. However, this is not enough as parliamentarians have fought the non-complying betting firms that are based offshore in attempt to evade taxes. He added that to be on the gaining side, the betting firms have tried to make sure that securing economies of scale as well as cost saving is their number one priority.

Jason Trost, CEO and Founder of betting exchange Smarkets, is not pleased with the amalgamation processes and claims that Betfair should stick with its exchange model rather than indulging in other businesses. He added that it is not advisable Betfair to form alliances with antiquated bookmakers but instead should cuddle to the value added. This will definitely bring in short-term shareholder value as well as lack of innovations.

It has been reported that Germany sports betting operator mybet has been faced by a gradual decrease in its SE H1 2015. This has been subject to the decrease by the number of players involved in the curriculum. Though there was an increase in group revenue which went up by 5.5%, the resultant had no any impact on the earnings and profits which oversaw a loss of €238,000 which prompted the firm to incorporate changes over the period.

The several changes that were incorporated were meant to be crucial in the transition of the company in a nearby future in terms of its growth. This would be achieved by the means of putting in place channels that are cost-intensive as well as insertion of good life time revenue for players.

In addition mybet was also hit by a drastic decline in the digital operating margins which fell down by 2.3%. It was noted also that company had overseen the fall of its active clients which fell by a whopping 10%. The number fell from 127,000 in the H1 2014 to current 114,500. This was shocking as the firm had an average active player of 21,000 every month.

However, despite all these downfalls, the company claimed to have recorded little increase in various sectors. It was said that the mybet had a drastic increase in the mobile operation activities which went up by 387% in revenue during the Q2. This has been seen as the key factor to the development of mybet.

The new mybet CEO Zeno Ossko who took charge in July from Sven Ivo Brink claimed that there has been a higher rate in which people win and has resulted to a higher payout to the winnings. This was followed by a downfall in the lower hold margin to 18.9% from the previous 19.9%. The two aspects led to the bad development in betting stakes that had negative impacts on the earnings as well as revenues. Profitability expressed as earnings before interest and taxes (EBIT) was hit by pressure from these two factors.

He concluded that this year the company will be focused mainly on the issues pertaining both the customers’ service delivery and their perfect products rendering.

In making betting public across Russia as well as acquiring more clients, the Russia’s Communication Ministry has put in place the 24 hour advertisement on various betting sites and bookmaking offices in the nation. This is a new bill that was tabled to the parliamentarian and is expected to go through as betting will form a basis of revenue for the Russian Government through taxation.

This new bill that is to be tabled will act as an amendment clause to the Article 27 of the Law on Advertising. This amendment will imply that betting and bookmaking office advertisement will be made throughout the day across the nation. Nevertheless, the Government will take full control of the advertisement and will in turn incorporate stern rules and terms that would avoid any bias or exaggeration of the advertised product. Hence, the products to be advertised will be put on check.

One of the main restrictions to be incorporated would involve being on the lookout especially to those adverts that would focus mostly to the under age or those who have not attained the betting age. It will also make sure that the betting agents do not put more pressure on wagers to make them see it as a way to earn a living. This means that the adverts will avoid inflating winnings which would be hazardous to some bettors.

These advertisements on gambling are scheduled to be staged via TVs, Radios, printing media, at various facilities that offer sports as well as physical fitness, online advertising and also in various buildings where an array of activities takes place. On the other hand, these adverts are banned in airports, rail station, metro stations or any other related fields.

The to be amended Article 27 of Law on Advertisement implied that these adverts would only be made via TVs and radios. On other platforms such as areas of interests like gyms, the adverts were time restricted only from 10 p.m to 7 a.m.

The proposed draft legislation 671-2015, has been progressed by the Brazil’s senate. The legislation will see that fixed odds sports betting meet a regulatory requirement. Currently, the Brazilian gambling law permits players to gamble on land based casinos, lottery and horse racing events that are licensed.

Brazil is one of the potential market in Latin America for international online gambling, which has become very popular. However, the Government of Brazil has been very slow in implementing gambling laws to accommodate the changes in the industry.

Prior to the 2014 World cup, Senator Ciro Nogueira introduced the draft legislation, which emphasized on the need of following physical procedures by the operators seeking to join the Brazillian igaming market irrespective of their listed country of origin. This is the first draft of its kind to have a long and tedious process to meet its goal. On the other hand, other senators opposed stating that Brazil should instead focus on developing regulatory platform based on European style framework to regulate online casino games, poker and online sports betting.
From the media sources, it is evident that the draft legislation progressed because the Senate raised concerns about the popularity of online betting services being operated by remote companies. In addition to that, it came to the concern of the senate that Brazil lacked regulated provisions to curb illegal betting sites that targets the Brazilians.

After progressing in the senate, the draft legislation is now waiting for presidential approval. However, the full details of the betting framework and legislation is not yet known. Nonetheless, Brazil will probably begin to receive applications for licenses from foreign operators. As for now, nothing has been presented to the tax and licensing authority regarding charges on market entry.

Previous attempts to introduce online gambling and betting framework has drawn division of opinion on generating national policy.

Brian Kavanagh, the Horse Racing of Ireland’s chief executive has said there will be no delay to the newly introduced betting tax system in Ireland despite the UK’s point-of-consumption (POC) system that was introduced in December 2014.

The British law, referred to the High Court in London was found in favor of Gibraltar Betting and Gaming Association (GBGA), which argued that the issue of raising online gambling taxes should be decided by the European court.

The UK’sPOC is being challenged by GBGA on grounds that the new tax discriminates and restricts movement of services of non–UK businesses that operate within EU.

On behalf of HRI, Kavanagh said that the British Governmentcould be forced to repay taxes already secured and that HRI would pay close attention to developments

“It is not an unexpected development. It is one to watch but not one to have concerns about. We will have to wait and check out the detail of the case,” said Brian Kavanagh.

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Kavanagh stated that the introduction of the new betting bill in Ireland should not be delayed with UK POC regulated issues, which in the past has seen numerous delays. Kavanagh is confident of implementing the new bill, having seen it go through the EU scrutiny concerning its anticipated framework.

“It has been through the European validation process. Now whether this case in Britain is a technicality whereby the validation process can be tested in court, I do not know.”

“But the system has been operating in Britain since December and the Irish system will come in in a few weeks time so there will be no hold up in that respect. I think it is a case of watching what is going on. Both pieces of legislation, in both jurisdictions, had to be run by the EU before being introduced so they’ve been through that process,” Kavanagh added