The United Kingdom Gambling Commission has slapped the Stride Online gaming operator with a hefty penalty. It has done this by issuing a notice to that effect. The notice is still pending and has not yet come to effect for the time being.
Before arriving at this crucial decision, the gambling commission carried out an extensive review of the activities of the said gaming operator. It mainly focused on how the gaming operator carried out its activities.
It alleges that the said operator has not been diligent and faithful in all its dealings. This is why, in the opinion of the gambling commission, the operator deserved a hefty financial fine. This gaming operator has a vast interest in the field of online gaming and gambling.
These include but are certainly not limited to Regal Wins Casino, Magical Vegas, Spin and Win, Kitty Bingo, and Jack Casino. On its part, the operator has advised its market base and subsidiaries that it is presently considering the various approaches to take in response to the latest developments.
Some of the steps the operator is currently contemplating are lodging a formal complaint to the gambling operator as regards the proposed financial penalty. It also considers appealing the decision of the gambling operator and the accompanying penalties in a competent court of law. It even considers asking that the size of the penalty be reduced.
The markets have responded adversely to these developments. Stride gaming has lost a whopping one-third of its market value. This has mainly been occasioned by the loss of interest that most stakeholders have developed in response to these allegations.
Its shares fell by around 33% immediately the announcements. The slide slowed down to around 31.75% later up to the close of the business day. This slump in market value has no doubt adversely affected the daily revenue as well as the short-term financial standing of the firm.
The wider market was not spared either. Indeed, these shocking revelations have also sent the overall gaming market tumbling down. The London’s Alternative Investments market all-share index slumped by around 1.5% in the same week that the announcement was made by the gambling commission. The FTSE 100-share index was not adversely affected though. This is because it registered a paltry 1% slump in value.
This slump in the overall gaming share is understandable. Stride is the third largest online bingo operator in the United Kingdom. It commands a 12% market share. This loss of confidence, therefore, means a huge impact on the gaming market as a whole.
Given the significance of gaming to the British society, it waits to be seen the repercussions and long-term consequences of these developments. In particular, it is interesting to see the courses of actions that the various stakeholders are going to employ to counter these adverse developments.
These developments notwithstanding, the UK gambling and online gaming industry are still robust and reliable. The developments will hardly have any adverse effects or impacts on the resolve of the British society in enjoying their favorite pastimes.