Following news of its profits warning last week, Playtech has revealed more detail of its problems in Asia.
Shares fell 20 per cent on the news released yesterday that the group’s profits would be five per cent lower than the lower estimates of market expectations. Around €20m was removed from the company’s forecasts by analysts.
It is understood that the main Asian culprit for Playtech is Malaysia, currently an unregulated market but its government is taking steps to prevent Malaysians from accessing online gambling sites and mobile apps. The regulators there are looking at ways to close loopholes in its Common Gaming House Act of 1953 that currently enable Malaysians to gamble online.
As reported yesterday, the company’s problems are also exacerbated by the complex situation concerning the contract with Sun Bingo in the UK, for which Playtech provides the technology. This has run into problems and the Sun Bingo site is being relaunched.
