Shares fell today for 888 Holdings Plc. after it was made known that the company was being investigated by the UK Gambling Commission. Shares of the company saw a significant drop as the news was made public, the biggest drop since June of last year. 888 Holdings announced that a review of compliance is to be conducted by the UKGC in regards to rules that prevent problem gambling.
888 Holdings announced on their website that they will be working with the UK Gambling Commission on the review with a statement that said the company has been informed that the UKGC is currently conducting a review of the manner which a subsidiary of the company has been carrying out their licensed activities to ensure that the Licensee is within the compliance standards of the UKGC operating license.
The review will assess that certain measures are taken by the Licensee to ensure social responsibility to customers including that self-exclusion tools are provided across varying operating platforms, among other issues.
According to BBC, Analyst Simon Davies of Canaccord Genuity stated that the review comes after a period of increased regulatory activity within the online gaming market of the United Kingdom. Davies stated further that 888 may have to pay a fine if the UKGC identifies any breaches or see their license revoked, but this would be a worst-case scenario.
The UK Gambling Commission just recently set a £300,000 fine against BGO on the 2nd of May in regards to affiliate marketing breaches, which was a first of its kind. This fine was set by the UKGC due to misleading advertisements that were featured on the website as well as affiliates who promoted their offerings.
BGO was sent notification last September that their license to operate in the UK was under review based on irregularities reported on the way the BGO was promoting their gaming offering. In the end, the UKGC found nine advertisements featured from July 2015 until July 2016 were misleading and were in violation of the principles of which the UK gambling industry is regulated, included in the mix were websites of affiliates who reportedly represented the misleading content.