U.K. gaming financial review: Sept. 30, 2006
We begin our look back at the week that was in the world of British gaming financials with news that the U.K.’s second-largest bookmaker has stopped accepting online poker and casino bets from all American customers given the current-U.S. crackdown against internet gambling. William Hill said his company had always taken a passive approach to approaching U.S. customers and, based on legal advice, are now blocking U.S. business entirely. Company estimates peg the amount of gross win from online U.S. bettors as 0.5 percent, with Americans accounting for 0.1 percent of their gross win. William Hill’s features 2,000 betting shops across Britain, in addition to their website. News of the move affected their stock negatively, slightly, at a decline of 2p to 644p on the London Stock Exchange at Friday close.
Meanwhile, Sportingbet – who received some good news this week when a New York judge refused to extradite former chairman Peter Dicks to Louisiana – saw their stock rise six percent Friday to 191.25p before settling to close at 184.25p per share. Dicks, who said he does not plan to return to Sportingbet after stepping-down as chair on Sept. 14, plans to return to the U.K. He added he still aims to deal with charges brought-upon in Louisiana.
Elsewhere, Party Gaming – buoyed by the now-misguided hope that Senate Majority Leader Bill Frist had failed in his effort to pass an anti-online-gambling bill prior to the Congressional shutdown – gained more than 4 percent in Thursday trading, closing Friday at 107p per share. It remains to be seen what sort of impact will befall Party Gaming and other similar ventures as the market reopens Monday morning, as analysts peg the immediate futures of online-only gambling companies as bleak. In contrast, those companies with actual betting shops in addition to online options will fare far-better, encompassing outfits such as William Hill, Ladbrokes (which closed at 389.50p Friday) and Rank Group (Friday close of 234.75p).
- Rex Harris