GVC Holdings posted double-digit growth in online gambling while its retail betting shops suffered as a result of stricter betting regulations introduced by the UK Gambling Commission.
On Wednesday, GVC Holdings confirmed that revenues from their online gambling operations were up 18 percent by the end of June. However, the income from its domestic betting shops fell by 10 percent.
The decline in revenue from the betting shops across the UK has been blamed on the maximum stake reduction on the Fixed Odds Betting Terminals (FOBTs). The maximum stakes on FOBTs were reduced from GBP 100 to GBP 2.
GVC Holdings which owns the betting shop chain Ladbrokes Coral had announced that they would be shutting around 900 shops putting thousands of jobs at risk.
Betting shops owners and bookmakers have been facing strong revenue issues in the domestic retail market. Recently William Hill also announced that they would be shutting at least 700 betting shops across Uk putting around 4,500 jobs at risk.
Many Uk companies are expanding their businesses in other regulated European markets and the US to mitigate the risk of losing in the domestic retail market.
GVC said that online revenue growth was in the double digits in all its key markets. The biggest growth was recorded in Brazil and Australia, where sales in both markets increased by 38 percent.