Gambling Reform Letter Causes Entain Stock Price To Fall

Entain, one of the world’s most powerful gambling companies, has endured a rollercoaster week after seeing its shares drop in the UK over government calls to establish betting limits.

The company that owns sports betting and casino brands such as Ladbrokes and Coral started out the week by reportedly bidding $1bn for Estonian operator Olympic Entertainment.

Yet that good news has been swiftly forgotten following a drop in its share price on the London Stock Exchange triggered by influences within government.

Parliamentarians in Westminster have called for tighter restrictions around betting limits in order to help protect children from gambling.

A letter to the Telegraph newspaper has called for “bold” government action to be taken over gambling limits. It includes restricting wagers online to £2 per bet.

“Limit online bets to maximum of £2 ($2.66),” said former Conservative leader Sir Iain Duncan Smith. “It’s time for the Government to live up to the Conservatives’ 2019 manifesto commitment to a review of gambling laws, levelling up and social justice.”

Entain is one of the UK’s leading online gambling brands and as such saw its share price fall 3.3%, says Sharecast News. Flutter, another gambling giant seeking to grow in the US, witnessed a 2.2% fall.

While the share price drop won’t impact greatly on Entain’s business goals, it does highlight how volatile the gambling industry’s value is when it comes to dealing with government.

The UK is currently conducting a review of its gambling legislation in order to update the 2005 Gambling Act, which was written before online gambling truly exploded on the world stage.

Part of the review is looking at evidence into how children are impacted by gambling advertizing – particularly during sporting events and prime time TV commercial breaks.

Restrictions on advertizing and promotions, and greater emphasis on player protection and welfare, are expected to be recommended in the UK Gambling Commission review.

Entain Bids $1bn For Olympic Entertainment

Meanwhile, Bloomberg  reported earlier this week that Entain is seeking to take over Olympic Entertainment Group (OEG) in a $1bn push.

It is claimed the British company has plans to run OlyBet, alongside its operations in Lithuania and Croatia. But the big prize would be purchasing OEG’s outstanding business and therefore take control of the 100 casinos it operates across Europe.

Entain has grown rapidly since its establishment in 2004 and over the past decade has invested heavily in online betting brands. So much so that DraftKings considered a $22bn swoop for the company this fall, before backing away from the move.