...Competitive Markets: Fitch Ratings believes that the very competitive EMEA gaming markets will continue to ensure operating margins remain under pressure in the next three years. In the last three to four years overall taxation levels have risen, while in some countries concession fees from state entities to betting operators have been falling due to European governments' need to address budget deficits. Lastly, Fitch sees increasing regulation and regulatory costs in the industry, particularly in the machines gaming sector, which is politically sensitive. Consolidation is Go: With costs rising and revenues under pressure, there are now too many players in the EMEA market. This has been exacerbated by new online-only operators such as 888/Betfair with innovative and cheaper business models. As a result, the sector is beginning to consolidate to allow the remaining players to be better placed as new taxes and increased regulations will require financially stronger groups. These new combinations...
