Stock Market Correction Hits European Facing Online Casino Operators

Published Sunday, August 07, 2011 -

Last week the stock markets around the world took a huge hit as investors cleared the decks for a sell off that was compared to the last huge dip in the market back in 2009. Some analysts say the correction was due and that the threat of total meltdown is avoided by smaller tolerable sell offs. That being said though there was some serious declines in many sectors including the gambling industry.

While land based casino stocks dipped in the USA the slide was echoed in the United Kingdom with online betting companies experiencing downward trends. Betfair which has been experiencing a slippery slope of late, fell as low as 562.5p before closing at 567p resulting in a loss of 3% on the day. Other well established firms experienced a downward trend also with Paddy Power and Ladbrokes each down 4%, William Hill off a full 3.5%. 888 Holdings and Playtech also saw declines of 2% each.

The investors decided that inaction on the part of Ladbrokes with regards to the proposed take over of Sportingbet meant that Sportingbet was not making headway after Ladbroke’s Chief Executive Officer Richard Glynn would not comment to the press about the negotiations with Sportingbet. The result was a big decline in the value of Sportingbet stock which fell 4p to 49p a seven and a half percent slide.
The reason behind the decline of stock is not as obvious. The stock dipped as low as 113.8p considered a new record before closing at 116.9p, a loss of 5.7% in one day. Much of investors jitters are blamed on the fact that has most of its interests focused on the European market. The unsettle conditions in Greece where is reportedly generating eleven percent of it’s revenues is a factor that can not be ignored. The Italian market where also garners ten percent of its revenues is also in a state of flux.



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