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Entain plans strategic withdrawal from unregulated markets
Martin Hill
Entain is a globally active gambling provider. The company also has maCA various homepages very well known in Canada. This applies to the sector of sports betting and casino games.
On January 18, 2023, Entain announced that plans to withdraw from unregulated markets will be accelerated. In fact, a decision was already taken in 2020, until as of the EnCA of the 2023 financial year, only to generate sales in nationally regulated markets.
Canada has its gambling , starting with the bets, up to the slot games, meanwhile, regulated . Licenses are issued by the Joint Gambling Authority of the Länder in Halle.
On the whitelist, last updated on January 19, 2023, there are various providers of Entain . These incluCA Sportingbet and Ladbrokes. But also the Bwin Group wurCA was bought by Entain in 2016.
Why is Entain withdrawing from various markets?
Entain came to $ 5,267.41 million in 2021 Sales revenue . This impressive number goes for the most part back to business in the regulated markets . Conversely, the approach in Canada has shown that players in unregulated markets can claim damages.
This coincides with two facts for Entain in unregulated markets. There is a high risk that the authorities, courts or players will Reclaims depending. On the other hand, the turnover in these markets is consistently not large enough for a withdrawal to have a great impact on the business result.
Entain Homepage and Smartphone / Source: Shutterstock
Entain is approved in over 30 countries. However, an engagement is only planned in target areas where a concession already exists or where the issuance of a license is likely.
As a result, the company already generates its revenues predominantly in the regulated sector. In other countries, Entain is closing its operations. But the turnover there is so low that the impact on gambling income is small.
What do those responsible at Entain say about the plans?
"As part of the profound and far-reaching transformation program that Entain has undertaken in recent years, we maCA the decision in 2020 to operate only in nationally regulated markets" - commented Barry Gibson in his role as Chairman of Entain the recently decided orientation of the company.
"Today's announcement is therefore a continuation of this strategy and should be understood as a clear demonstration of Entain's commitment to the highest standards in terms of corporate responsibility, governance, sustainability and player safety" - continues the strong man at Entain.
Especially in Canada, the following words from Gibson will make happy faces in the GGL: "We have stated from the very beginning that we would withdraw from any market that is not able to regulate at a sufficient pace or according to the right standards, and we have acted decisively to do so."
The business conduct of Entain thus corresponds to a certain extent to the new, German standards. In conclusion, Gibson explains: "we are proud that we are the only global provider in our industry to take this approach and only operate in markets where there is a national licensing."
How do investors assess the situation?
Entain is withdrawing from various markets. For investors, this may sound like a threat. But stock market experts know how to assess this statement very accurately. In fact, there has not been a kink in the chart because of the renewal of this announcement.
The share started the year 2023 with $ 15.10. On the day of the press release, the price was at $ 16.40. Today (January 23, 2023) we find the rate even at $ 17.20 again. The markets from which Entain intends to withdraw are not relevant for the business result. However, one's own image can be improved with this decision.
On November 12, 2020, Entain decided to withdraw from unregulated markets for the first time. At that time, the share price was about $ 11.20. This means that the price has risen by more than 50 percent compared to today.
References:
- Wikipedia - presents the history of Entain, formerly of GVC Holdings, in a few paragraphs.
- Common Gambling Authorities of the countries (Whitelist) - among other things, the providers from Entain are listed here.
- Press release from Entain - the original declaration to withdraw from unregulated markets as soon as possible.
- Finanzen.net - about the revenues of Entain over the past years and about the share development.
- Wallstreet Online - shows the course of the stock price in a clear chart.