Operator shares tumble as UKGC CEO reveals August online stake limit introduction
Hills, GVC and Flutter Entertainment share prices slump as UKGC reportedly confirms stake caps to be set in six months
Shares in London-listed online gambling companies fell sharply today after UK Gambling Commission CEO Neil McArthur said he would look to impose online stake limits from August.
William Hill’s share price on the FTSE 250 index dropped by 7.51% in this morning’s trading, while GVC Holdings’ share price plunged by 6.59%. Fellow operator Flutter Entertainment’s shares were down just over 2% in today’s trading.
Shares in online casino supplier Playtech dived by 7.68%, while 888 Holdings’ share price fell by 2.43%.
The sudden drops, which wiped hundreds of millions of pounds off the value of listed operators, come after McArthur confirmed to the Gambling-Related Harm All Party Parliamentary Group that stake limits would be introduced for online operators within six months.
We welcome the commitment from Neil McArthur, CEO of @GamRegGB, at @GRHAPPG today to make a decision on reducing stake limits online to bring them in line with land-based limits within 6 months in response to the APPG’s recommendation. pic.twitter.com/Z7acbHixvV
— Gambling Related Harm APPG (@GRHAPPG) February 12, 2020
No information on the potential stake limit which would be imposed was disclosed.
https://twitter.com/JRANoyes/status/1227654110171815937
APPG chair Carolyn Harris MP welcomed the decision as being long overdue, adding that she was pleased the UKGC “had finally seen sense”.
In comments reported by The Financial Times, Harris said: “Online slot content games should be reduced to £2 a spin in line with the rules in betting shops.
“The Gambling Commission must stop being reactive and take action to protect the vulnerable from harm in line with their licensing objectives,” she added.
However, the UKGC refused to be drawn on whether this would occur in six months, affirming its commitment to reducing gambling-related harm.
“We said last October that we would be looking at online stake limits as part of our ongoing work to reduce the risks of gambling-related harm,” a spokesperson for the UKGC confirmed to EGR.
“This work is in addition to us focusing on VIP practices, advertising technology and game design. We will publish our assessment and next steps for online stakes and further protections later this year,”
In addition to revealing the potential for online gambling stake limits by August, the APPG also claimed the UKGC will ban VIP programmes if not enough action is taken to reduce gambling-related harm.
Yesterday, Neil McArthur, CEO of @GamRegGB, said at @GRHAPPG that if action is not taken to reduce harms relating to VIP accounts then the Gambling Commission will have no choice but to ban them.
— Gambling Related Harm APPG (@GRHAPPG) February 13, 2020
At present, the issue of VIP programmes and incentives is currently being looked at by one of the UKGC’s operator-led working groups.
GVC is leading this group in collaboration with the industry’s trade body, the Betting and Gaming Council.