Millions of pounds have vanished from gaming and betting firm shares after the UK Gambling Commission revealed that it would consider cutting the maximum stake on casino games to two pound.
In a meeting with British politicians, the UK Gambling Commission’s chief executive said that the regulator is investigating the harm caused by gambling and that the cap could be introduced as early as Autumn 2020.
In response to the suggestion in the gambling market, shares fell as investors sold their stakes in casino providers and sportsbooks.
Among those who witnessed a fall in share prices was GVC – owner of Ladbrokes Coral, 888, Playtech and William Hill, reporting a drop of almost 10 percent.
Overall, it is estimated the UK gambling stock market plumetted by half a billion pounds.
A UK Gambling Commission spokesperson commented on the proposal:
“We said last October that we would be looking at online stake limits as part of our ongoing work to reduce the risks of gambling-related harm.”
The spokesperson continued to explain the suggestions and when the industry might expect to see a cap on betting:
“This work is in addition to us focusing on VIP practices, advertising technology and game design. We will publish our assessment and next steps for online stakes and further protections later this year.”
The proposal by the UK Gambling Commission follows legislation that was introduced two years ago that cut maximum betting limits to two pound from one-hundred pound in FOBT’s (fixed odds betting terminals).
Amid gambling addiction concerns, the UK government has stated that it will announce a review of the UK Gambling Act that was brought in some 15 years ago.