Inspired gaming’s revenue for the second quarter of 2019 has suffered due to the new FOBT regulation in the UK which reduced the maximum stake limits from 100 GBP to 2 GBP.
The company posted a 27. Percent decline in revenue for Q2 as its total revenue went down from 36.9m for the same period the previous year to $26.7 million.
Inspired reported Q2 adjusted EBITDA of $8.9 million which represented a decline of 42.8 percent year on year.
The company in its filing has blamed the stake reduction policy which was implemented in April. Inspired said that the stake reduction has led to a $5.5 million drop in its revenue.
“The impact of the reduction was in line without expectations,” said Lorne Weil, chairman. “We believe that we have taken much of the hit on the loss of revenue in the second quarter with very little mitigation so far. We have seen the revenue begin to creep back up with gross win per unit per day improving from 44.5 percent decline in April to a 38 percent decline in June.
“The trend has continued so far in the third quarter and we anticipate that it will be more pronounced with the acceleration of shop closures and the restructuring mitigation. We remain confident in our plans to manage the effect of this regulatory change.”
Betting shops and bookmakers have been suffering amidst stricter regulations in the UK. Recently bookmaker William Hill announced that they would be shutting shops which would put hundreds of jobs at risk.