The sector’s shares recovered from early declines following the release of information regarding the white paper’s contents. – Law & Compliance – iGB
The sector’s share prices recovered from initial drops after reports surfaced that the new gambling bill white paper will include a £125 affordability soft cap per month – with stricter checks for players who lose £2,000 in three months.
Home > Law & Compliance > Sector Shares Rebound After White Paper Details Surface
Sector Shares Rebound After White Paper Details Surface
Industry commentator Earnings + More reported on a number of details related to the Gambling Act white paper this morning.
Sector sources confirmed to iGB that this aligns with their understanding of the document.
Perhaps the most significant detail in the report was the mention of affordability checks that operators may need to implement. Players could net lose up to £125 per month, or £500 per year, before “passive” checks kick in – looking at whether players have obvious signs of financial distress, such as county court judgments.
Those who lose more than £1,000 in 24 hours or more than £2,000 in 90 days will face “more thorough” checks.
New accounts will face lower thresholds.
However, sources have raised questions about what the two levels of checks will mean in practice and whether the checks will have an impact on customer credit scores.
Further details have been unveiled regarding the previously declared wagering restrictions. These will be put into effect as “intelligent wagering limits,” with patrons initially capped at £2-£5, but those who pass financial assessment checks will be able to enhance their wagers to £10-£25.
Other offerings, including other online casino games, will not be influenced by the wagering limits.
Online VIP programs will also be prohibited. Free wagers – contrary to previous reports – will not be entirely prohibited, but may be “targeted” based on expenditure.
In response to the announcement, most industry stock prices initially declined, but then recovered significantly. 888 – which recently acquired William Hill, giving it particularly high exposure in the UK – experienced the most substantial increase, moving from £1.46 per share at 10am before the report was released to £1.50 at midday.
Entain’s share price was £10.74 at 10am but was up 1.6% at the time of this writing.
Flutter’s share price initially dipped to £75.14 after the news was released, but then climbed to £75.86.
The white paper has been subject to numerous postponements since the Gambling Act review commenced in 2020. Recently, the minister responsible for the review, Chris Philp, stepped down, and the resignation of Prime Minister Boris Johnson disrupted the process.
Philp has been replaced by Damian Collins, who may himself advocate for final modifications to the white paper.
Sign up for the iGaming newsletter.
