Gaming And Vfx
British gambling firm 888 warned of lower mid-year revenue amid tightened UK online gambling safety measures and the closure of its Dutch operations, sending its shares over 6% lower.
Britain has introduced rules in recent years, including a cap on the maximum stake on terminals, stricter age and identity checks for online gambling, and more support for those who become addicted.
The British Grambling Commission Issued fresh guidance this week, which gambling firms must consider before enforcing the rules from September 2022.
London shares of 888, which enjoyed huge gains as COVID-19 lockdowns boosted online gambling, have lost about 43% this year.
Russ Mould, investment director at AJ Bell, said deregulation was an enormous theme for the gambling industry in the USA, but the opposite was happening in many other jurisdictions.
Mould said that, notably in the UK, affordability checks, maximum stakes, and other safer betting measures could affect turnover depending upon the government’s conclusions and legislation. He added that the gambling firm’s share drop could be due to the ongoing regulatory uncertainty.
Last year, 888 agreed to purchase William Hill’s international assets from US-based owner Caesars Entertainment and proposed raising nearly 1.02 billion pounds ($1.25 billion) in debt.