Gambling Companies Lose Value Since the Offered £2 Cap
Lots of investors have started selling their stakes in bookmaker companies after the Gambling Commission said it might cut the maximum stakes.
Gambling companies actively lose their value. The loss in shares is already estimated in hundreds of millions of pounds. This change was caused by the regulatory body that considered cutting down the maximum bets in online casinos and betting sites to £2.
Neil McArthur has agreed to consider this cut within the next half of the year. The chief executive of the Gambling Commission also made this promise to the APPG, the group which studies harm created by gambling.
After the news broke Thursday morning, the investors in online gambling companies immediately reacted and stages sell-offs. According to the official data, William Hill fell almost 8%. Other gambling companies also felt the changes. For instance, Ladbrokes Coral and Playtech fell by 7%, Flutter and 888 lost a smaller percentage. In general, the losses are estimated to be over £500 million.
The Gambling Commission representative stated that the review of the stake limits was already announced last fall. He added that the reason for the changes is directly related to the decrease in risk and harm created by gambling.
The representative added that the Commission will examine the poor VIP schemes, ad methods, and game design. Later in 2020, the official assessments and changes will be published to increase the protection.
McArthur also plans on reviewing the online stakes at the dedicated meeting. The all-party parliamentary group will be present and help deal with harm created by gambling.
The APPG also took part in gathering substantial support for other limitations on betting. That one resulted in cutting the maximum allowed stakes to £2 (on the controversial slots). This change was equal to banning slot machines that seduced gambling addicts since the change made them unprofitable for bookmakers.
The APPG’s influence has already caused a similar situation and the price share fall earlier. That case happened in November and shed almost £1.2 billion. That time MPs suggested stringent curbs for games worth over £2 billion per year to an online casino.
The Government has recently announced to review the 2005 Gambling Act due to increasing concerns about gambling addiction.
Nowadays, the focus is aimed at problems like kids’ gambling addition, people who are vulnerable to gambling with the flood of advertisements. It also concerns the industry’s tight connections to soccer and the poor VIP schemes for losing players.