(Reuters) – Online gambling firm 888 Holdings on Wednesday flagged growing risks of gambling-related harm as more stuck-at-home Europeans bet online amid nationwide lockdowns to curb the spread of the coronavirus.
888 did not give hard figures for its performance since the lockdowns took hold across Europe in March, but said that as a purely online operator, it was “confident” of managing the business challenges presented by the lockdowns.
Operating in an industry closely monitored by regulators, the company said it was ramping up programmes aimed at managing gambling addiction.
The company’s shares fell 7.2% to 132 pence.
“With people spending more time at home and with increased levels of stress and economic uncertainty … we are proactively communicating with our customers to provide information on safer gambling and, where necessary, offer support,” Chief Executive Officer Itai Pazner said.
Playtech
“More customers at home creates the opportunity for a greater volume of recreational play. However, it also creates the risk of regulatory changes intended to protect consumers,” Peel Hunt analysts said.
“888 and other industry leaders have made it clear that they have adapted their approach to responsible gaming for the COVID-19 situation. However, this will be insufficient for advocates of regulatory change”.
888’s full-year pretax profit fell to $45.3 million hit by increased gaming duties, exceptional costs and net finance expenses, compared to $108.7 million a year ago.
(Reporting by Tanishaa Nadkar in Bengaluru; Editing by Saumyadeb Chakrabarty)
