The regulatory body of Gambling in the United Kingdom has proposed to put limits on the maximum amount consumers can bet online. The Gambling Commission communicated to a parliamentary committee that it would be considering placing limits to online stakes and implement this in the next six months. This move planned by the Gambling Commission can be seen as the measure to protect the common public from gambling addiction in the United Kingdom.

The Gambling Industry in the UK has been under stress since the last year with the implementation of stricter age-verification checks and higher taxation. In April last year, on fixed-odds betting terminals (FOBTs) and high-speed electronic slot machines, the British Government reduced the stake limits from £100 to £2 in the retail sector. The UK government now wants to implement the same limit of £2 per bet for online slot machine-style gambling.

The United Kingdom has a long history of gambling. During the industrial revolution, when people started betting on horse racing, Gambling came into existence. The industry later graduated with the advent of Casinos and other betting-based activities. It also allowed generating a source of income from traditional entertainment activities. However, this can be termed as a lifestyle hazard, as it is very risky, and one can suffer huge financial and reputational loss with these activities. Gambling does not factor any mathematical probabilities or algorithms and is based purely on speculation.

Some people believe that these stricter policies can put the UK Gambling industry into a structural decline. The UK has one of the best online betting gaming industry in the world. With these policies coming into effect, people can be driven to the black market. The unregulated market in the UK has a turnover of £1.4 billion and 200 thousand people used online gambling sites last year, according to a recent report issued by PwC. Last year in November, with the stricter norms betting shares plunged and wiped off £1.2 billion off the market value of the sector’s major players after MPs called for the real-life machines found in high street betting shops and the online slot games to put in sync.

The market responded in a similar fashion on Thursday (13 February 2020), as the investors in Gambling stocks staged a sell-off. Overall, the Gambling sector in the UK wiped off more than £500 million. The significant fallers were William Hill, GVC, and Playtech. Flutter and 888 too fell, albeit by a smaller amount.

Comparative share price chart of the Gambling stocks- WMH, GVC, PTEC, FLTR and 888

(Source: Thomson Reuters)

William Hill PLC (LON: WMH)

Gambling company, William Hill PLC offers betting on sporting events through OTC (over the counter) or directly through betting terminals. It also offers casino-style gaming machines. The company owns betting offices authorised by the government which are equipped with gaming machines. The group has more than 2 thousand licensed betting shops. On February 12, 2020 (Wednesday), the shares of WMH closed at GBX 196.05. On Thursday, i.e. 13th February 2020, the stock closed at GBX 181.00, down by 8.28 per cent.

On 14th February 2020, while writing at 10:22 AM GMT, WMH shares were clocking a current market price of GBX 177.65 per share. The company’s market capitalisation was at £1,582.28 million at the time of writing.

On 21st October 2019, the shares of WMH have touched a new peak of GBX 206.80 and reached the lowest price level of GBX 128.41 on 03rd June 2019, in the last 52 weeks.

The shares of the company have delivered a positive return of 4.90 per cent in the last quarter. The company’s stock plunged by 3.95 per cent from the start of the year till date. The company’s stock has given investors 1.91 per cent of a positive return in the last year.Â

GVC Holdings PLC (LON: GVC)

Isle of Man-incorporated sports-betting and gaming group, GVC Holdings PLC (LON: GVC) owns some of the leading brands in the gaming industry and is one of the largest sports-betting and gaming groups in the world. The company’s operations are differentiated in five operating segments, namely Online, UK Retail, European Retail, Other and Corporate. On February 12, 2020 (Wednesday), the shares of GVC closed at GBX 931.60. On Thursday, i.e. 13th February 2020, the stock closed at GBX 866.40, down by 7.52 per cent.

On 14th February 2020, while writing at 10:33 AM GMT, GVC shares were clocking a current market price of GBX 838.40 per share. The company’s market capitalisation was at £5,048.86 million at the time of writing.

On 13th January 2020, the shares of GVC have touched a new peak of GBX 956.80 and reached the lowest price level of GBX 504.00 on 26th March 2019, in the last 52 weeks.

The shares of the company have delivered a positive return of 5.92 per cent in the last quarter. The company’s stock plunged by 2.01 per cent from the start of the year to till date. The company’s stock has given investors 32.27 per cent of a positive return in the last year.Â

Playtech Plc (LON: PTEC)

Plytech Plc (LON: PTEC) develops software to facilitate web-based gaming. It develops pay to play gaming apps for the land-based terminal for gambling, mobiles and live gaming. On February 12, 2020 (Wednesday), the shares of PTEC closed at GBX 367.10. On Thursday, i.e. 13th February 2020, the stock closed at GBX 340.00, down by 7.97 per cent.

On 14th February 2020, while writing at 11:04 AM GMT, PTEC shares were clocking a current market price of GBX 337.10 per share. The company’s market capitalisation was at £1,032.89 million at the time of writing.

The shares of the company have delivered a negative return of 14.25 per cent in the last quarter. The company’s stock plunged by 14.36 per cent from the start of the year to till date. The company’s stock has given investors 11.62 per cent of a negative return in the last year.Â

Flutter Entertainment Plc (LON: FLTR)

UK based Flutter Entertainment Plc (LON: FLTR), is a betting provider and channel gaming company. On February 12, 2020 (Wednesday), the shares of FLTR closed at GBX 8,782.00. On Thursday, i.e. 13th February 2020, the stock closed at GBX 8,564.00, down by 2.54 per cent.

On 14th February 2020, while writing at 11:10 AM GMT, FLTR shares were clocking a current market price of GBX 8,432 per share. The company’s market capitalisation was at £6,709.65 million at the time of writing.

The shares of the company have delivered a positive return of 5.21 per cent in the last quarter. The company’s stock plunged by 7.16 per cent from the start of the year to till date. The company’s stock has given investors 33.60 per cent of a positive return in the last year.Â

888 Holdings PLC (LON:888)

Incepted in 1997, 888 Holdings PLC it is a trusted brand in the online gaming industry. On February 12, 2020 (Wednesday), the shares of 888 closed at GBX 139.70. On Thursday, i.e. 13th February 2020, the stock closed at GBX 134.90, down by 3.55 per cent.

On 14th February 2020, while writing at 11:20 AM GMT, 888 shares were clocking a current market price of GBX 136.30 per share. The company’s market capitalisation was at £496.90 million at the time of writing.

The shares of the company have delivered a negative return of 15.16 per cent in the last quarter. The company’s stock plunged by 18.24 per cent from the start of the year to till date. The company’s stock has given investors 20.22 per cent of a negative return in the last year.Â

 

   
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