Pinned Post: Assessing UK regulatory risk, again

Research evidence excerpt

Pinned Post: Assessing UK regulatory risk, again

FoundationMExhibit 1: Illustrative shop NGR and EBIT distribution applied to Entain average

shop economics

Source: Morgan Stanley Research estimates

Quick hits:

Music: MIDiA data suggests global music subscribers are nearing 1bn, with Spotify

still leading and YouTube Music gaining share rapidly (here); TIDAL will tag fully AI-

generated music and block it from earning royalties, while removing AI

impersonation/fraud content (here); The NO FAKES Act, which would create federal

protections against unauthorized AI voice and likeness deepfakes, passed Senate

Judiciary on June 18th but still needs full Senate, House and presidential approval.

Spotify reportedly deleted streams of a chart-topping song after suspicious Kalshi

betting activity raised concerns about possible manipulation (here).

Media: Omnicom is set to win Adidas’ $512m global media account, taking the

business from incumbent WPP (here); WPP named first launch partner to pilot

Meta’s newest creative solution, integrated within WPP Open; GTA 6 will launch at

$79.99 and will be download only (physical copies to include download code); Sony

is reportedly becoming the first major console maker to stop making physical

games, marking another step toward an all-digital console market.

Gambling: Entain’s €425m CEE stake sale crystallizes a 10x EBITDA valuation,

supporting deleveraging/capital returns and simplifying the portfolio while leaving

guidance unchanged (here); See our UK&I Field Trip note here. Three takeaways:

UK&I online trading is stronger than expected despite the April tax rise; Scaled

operators are best placed to mitigate taxes and gain share; Retail machine tax is the

next key regulatory overhang, with Entain especially exposed; World Cup prediction-