Endeavour calls on states to work together on gambling reform

Endeavour told shareholders on Thursday that the company would move swiftly to implement changes after the Victorian government unveiled proposed reforms to gaming machine regulations on Sunday.

The state’s plan for reducing gambling harm includes slower spin times for games, mandatory closing periods for gaming room floors, mandatory pre-commitment limits and a load-up limit of $100, which will cap how much an individual can put in a machine at a time.

Endeavour confirmed it would adjust the hours of gaming machine areas at its ALH Hotels in Victoria, so they close between 4am and 10am by August 31; 10 months ahead of the government’s proposed timeline.

This would bring Victoria’s rules in line with operating-hours regulations in NSW and South Australia.

The company also confirmed it supported the $100 load-up limit and would bring this into operation for Victorian machines “as soon as is practicable”.

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Shares in the business closed 9.9 per cent weaker on Monday as investors and analysts considered what impact the reforms would have on the group’s earnings.

Goldman Sachs analysts said on Monday that the exact impact would be difficult to estimate, but said it could lower earnings by 0.5 per cent to 1.8 per cent during the 2024 financial year.

E&P Financial analyst Philip Kimber said policies such as the $100 load-up limit were likely to have a smaller impact on Endeavour’s financials than the Victorian government’s policy on pre-commitment limits.

“There is no change to our view that the Victorian government proposal with the potential to have the most material impact on electronic gaming machine spend in Endeavour’s Victorian pubs is mandatory pre-commitment limits [via carded play],” he said in a note to clients on Thursday.

Endeavour shares opened stronger but did not maintain momentum during Thursday’s session as the broader market stayed flat. The stock was up 0.3 per cent to $5.91 in late afternoon trade, but still down by 5.6 per cent over the past five days.

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