888 sees chunk of online sales disappear after imposing measures to protect problem gamblers

It came as a return to more normal revenues in its retail shops largely offset the 15 per cent drop in online revenue “which was driven by proactive investment in enhanced player safety measures” in the UK and the closure of its business in the Netherlands.

It came in the year that 888 secured a deal to buy William Hill’s non-US operations, which includes around 1,400 betting shops in the UK.

The business reported a £115.7m pre-tax loss due to one-off costs, including some of those linked to the nearly £2bn acquisition.

But when stripping out one-off charges, 888 said it had made an adjusted pre-tax profit of £80.5m, down 10 per cent compared to the year before thanks to increased interest costs that the business had taken on after buying William Hill, which has a large base in Leeds.

Lord Mendelsohn, Executive Chair of 888, commented: "The combination with William Hill transformed the group and brought together two exceptional and complementary businesses to create one of the world's leading betting and gaming businesses.

“The group's financial performance in the period primarily reflected the extensive actions being taken to drive higher standards of player protection.

"While recent compliance issues in the Middle East were very disappointing, they have underlined the importance of our enhanced and proactive risk management framework.

“We have made positive progress with the integration enabling us to upgrade our synergy target from £100m to £150m.

"In 2023 we remain on track to deliver higher profitability as we deliver against our clear strategic priorities.

"Our clear priorities of integration, market focus, and deleveraging give us confidence in our 2025 targets, as we build a stronger and more sustainable business for the future."

The executive chairman’s statement added: “For more than 25 years, 888 has grown and developed as a technology-led gaming business. It has built a world-class and scalable global technology platform alongside outstanding digital marketing and data capabilities.

"Additionally, 888 is one of the leading online casino brands in the world. On the other hand, William Hill is a bookmaker by DNA, with an iconic brand that is instantly recognised across the UK, supported by a top-class retail estate.

"The highly complementary nature of these two businesses was reinforced by the materially increased synergy target of £150m we disclosed towards the end of the year. Throughout our annual report we outline in detail the significant benefits and value creation opportunities that will be delivered through the combination of these two highly complementary businesses, as well as update on the positive early progress made in the integration process.”