United Kingdom gambling companies witnessed their shares take a deep dive last month following the announcement of the MP regarding online gambling laws. The MP called for a swift crackdown on internet casinos, which would include a ban on credit card wagering, as well as a limit on stakes set at £2. GVC, the owner of Ladbrokes, saw its shares decrease by 10.7% while William Hill saw a decrease of 12.3%. Betfair’s and Paddy Power owner, Flutter Entertainment, had its stocks reduce by 3%.
Calls for UK Gambling Laws Adjustment
The APPG (All-Party Parliamentary Group) for harmful gambling echoed the calls of the Labour party. These calls requested the cancellation of laws made under the government of Tony Blair. The online gambling industry expanded greatly in the United Kingdom since the laws became much more relaxed following the Gambling Act 2005. Such growth caused an increase in concerns regarding gambling addiction and the serious social problems that relate to gambling.
The cross-party stated that root and branch changes and reform of the internet gambling laws are what they need. It is essential to be able to protect vulnerable people. These changes would also include VIP Accounts restrictions and responsible advertisements. For instance, according to the APPG, many companies use rewards and incentives to keep the players hooked. Therefore, the party wants the firms to perform affordability checks to make sure that they are wagering within their financial means.
Max Stake of £2 per Spin for Online Slots
One of the main concerns for UK online gambling firms if the gambling laws change, is the call to reduce the stakes of online slots. They aim to decrease it from £100 to £2 per spin, which resembles the change that happened to FOBTs at the beginning of this year. Such a measure would cause a considerable fraction and will create a significant dent in the multibillion-dollar industry of online gambling. It will also mean that land-based casinos will be the only venue that offers high stakes gambling in the United Kingdom. Two of the leading firms that will suffer from these new laws are Ladbrokes and William Hill, to name only a few.