3 Gambling Stocks in Focus as NHS Suggests Taxing Gambling Firms For Social Cause

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3 Gambling Stocks in Focus as NHS Suggests Taxing Gambling Firms For Social Cause

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 3 Gambling Stocks in Focus as NHS Suggests Taxing Gambling Firms For Social Cause

Source: sutulastock, Shutterstock

Summary

  • NHS director Claire Murdoch has said gambling companies should fund addiction treatment through imposition of a compulsive levy.
  • The UK government is reviewing betting sector laws and plans to raise the number of gambling clinics as addiction cases rise.

Driven by a spurt in demand, gambling firms have made money during the pandemic times and should be hit with an obligatory levy to fund therapy, said Claire Murdoch, Director, Nationwide Psychological Well-Being, NHS England.

Murdoch condemned the voluntary system that leaves the decision to the firms how much to contribute towards helping addicts. She said that the industry’s contribution towards the treatment was very little as of now.

Latest statistics reveal that nearly 45 per cent of Britishers gamble in some form or the other every month. Studies have also revealed that there are between 0.3 and 1.4 million gambling addicts in the nation. However, merely 3 per cent of them received specialist help.

The UK government is in the process of reviewing laws governing the gambling sector. NHS was planning to open up more gambling clinics to treat the rising number of people sick with a gaming addiction, she added.

 

The gaming industry

The UK gaming industry employs nearly 47,000 people, directly and indirectly. The UK gaming market is sized at a turnover of £11 billion per year.  The sector includes firms that operate video gaming terminals, casinos, gambling websites, bingo halls, betting shops and lotteries etc.

We take a look at three prominent players in the UK gaming space – namely Playtech Plc, Gaming Realms Plc, and Flutter Entertainment Plc.

Playtech Plc

The leading technology provider released its financial results for FY 2020 on 11 March. The company earned a revenue of €1.07 billion for the year, down 25 per cent as compared to the previous year. The company’s adjusted EBITDA was €310 million for FY 2020.

The company stock (LON: PTEC) was up 0.48 per cent to GBX 458.80 at 9.13 AM on Wednesday, 7 April, at the London Stock Exchange.

Gaming Realms Plc

The company that develops and licenses mobile focused gaming content released its pre-close trading update on 11 February this year. It said that it expected the FY2020 revenue to be £11.2 million and adjusted EBITDA to be £3.1 million. Its final company results for the year ending 31 December 2020 would be published on Tuesday, 27 April.

The company stock (LON: GMR) was down 2.13 per cent to reach a value of GBX 46.00 at 9.13 AM on Wednesday, 7 April at the LSE.

Flutter Entertainment Plc

The company’s actual net revenue was up 28 per cent to £5.26 million for FY 2020 while its adjusted operating profit was up 18 per cent to £990 million for the same year. Its adjusted EPS rose 19 per cent to 497p for 2020.

The company stock (LON: FLTR) was down 1.43 per cent to reach a value of GBX 15,520.00 at 9.11 AM on Wednesday, 7 April at the LSE.

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