Online gambling group Stride Gaming has set aside £4m in anticipation of a forthcoming UK Gambling Commission (UKGC) penalty which relates to compliance failures.
The UKGC penalty has forced the online gaming brand to reassess its annual projections and targets for the coming year (ending 31 August), with it predicting a 20% decline in EBITDA performance to £16 million.
On 2 August 2018, the firm made its investors aware that it had received a UKGC notice revealing the commission’s intention to order its syndicated brands to ‘pay a significant financial penalty following a review of its licensed activities’.
Updating investors this morning, Stride emphasised that it will seek to fulfil its £4 million UKGC penalty by the end of the calendar year.
Stride is expected to publish its full-year 2018 trading results on 21 November 2018. Commenting on the trading update Stride Gaming Chief Executive Eitan Boyd commented: “I am pleased to report that the group has traded well during the second half of the year despite a number of headwinds impacting the UK online gaming market.”
“Our focus remains on delivering further market share growth in the UK, driven by continued product innovation and increasing player loyalty. This is underpinned by the strength of our proprietary technology as well as our proven business analytics capabilities.”