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You can find the current article at its original source at https://www.theguardian.com/business/2017/nov/02/playtech-sun-bingo-fobts-profit-warning
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| Version 2 | Version 3 |
|---|---|
| Firm behind Sun Bingo and thousands of FOBTs issues profit warning | Firm behind Sun Bingo and thousands of FOBTs issues profit warning |
| (3 months later) | |
| Shares in Playtech, the company behind the software powering thousands of fixed-odds betting terminals and Sun Bingo, have fallen 20% after it issued a profit warning. | Shares in Playtech, the company behind the software powering thousands of fixed-odds betting terminals and Sun Bingo, have fallen 20% after it issued a profit warning. |
| The company said it expects to miss profit forecasts, blaming problems including a setback with its contract to provide software for Sun Bingo, a gambling website owned by Rupert Murdoch’s News UK. | The company said it expects to miss profit forecasts, blaming problems including a setback with its contract to provide software for Sun Bingo, a gambling website owned by Rupert Murdoch’s News UK. |
| The firm blamed technical problems moving the website on to its own software platform, after winning the contract to run the newspaper’s bingo business in 2015. | The firm blamed technical problems moving the website on to its own software platform, after winning the contract to run the newspaper’s bingo business in 2015. |
| It also blamed “lengthier seasonality”, which it defined as suffering quieter periods due to the weather. | It also blamed “lengthier seasonality”, which it defined as suffering quieter periods due to the weather. |
| Fixed-odds betting terminals (FOBTs) are machines, found largely in bookmakers and betting shops, that allow customers to stake up to £100 every 20 seconds on digital versions of games such as roulette. | Fixed-odds betting terminals (FOBTs) are machines, found largely in bookmakers and betting shops, that allow customers to stake up to £100 every 20 seconds on digital versions of games such as roulette. |
| The UK has 33,611 FOBTs, each of which take more than £53,000 from gamblers per year. | |
| Critics of FOBTs say they are particularly addictive, allow gamblers to rack up huge losses within a few hours, and are concentrated in deprived areas. They have also been linked to money laundering. | Critics of FOBTs say they are particularly addictive, allow gamblers to rack up huge losses within a few hours, and are concentrated in deprived areas. They have also been linked to money laundering. |
| Although Playtech makes FOBT softwares, it did not comment on the recent government review, which concluded that the maximum stake should be reduced from £100, potentially to as low as £2. Clients include William Hill, which is also likely to suffer a drop in revenues if FOBT stakes are slashed. | Although Playtech makes FOBT softwares, it did not comment on the recent government review, which concluded that the maximum stake should be reduced from £100, potentially to as low as £2. Clients include William Hill, which is also likely to suffer a drop in revenues if FOBT stakes are slashed. |
| Playtech also noted a slowdown in Asia due to “recent changing market conditions”, a reference to recent restrictions on online gaming in Malaysia, one of its major markets. | Playtech also noted a slowdown in Asia due to “recent changing market conditions”, a reference to recent restrictions on online gaming in Malaysia, one of its major markets. |
| The firm said it has given up hope of any improvement this year and warned that Asia’s contribution to revenue would “consistently reduce over time”. | The firm said it has given up hope of any improvement this year and warned that Asia’s contribution to revenue would “consistently reduce over time”. |
| The company expects annual profitto fall 5% below the bottom end of market expectations. | The company expects annual profitto fall 5% below the bottom end of market expectations. |
| The company, which also makes gambling games themed around The Flintstones and comic book characters such as Batman, said in August it expected a “strong performance in 2017”. | The company, which also makes gambling games themed around The Flintstones and comic book characters such as Batman, said in August it expected a “strong performance in 2017”. |
| But shares in the firm, founded by the Israeli billionaire Teddy Sagi, dropped more than 20% after the profit warning, cutting its stock market value by nearly £650m. It was the biggest faller on the FTSE 250. | But shares in the firm, founded by the Israeli billionaire Teddy Sagi, dropped more than 20% after the profit warning, cutting its stock market value by nearly £650m. It was the biggest faller on the FTSE 250. |
| Sagi, one of Israel’s richest men, has banked more than £780m by selling his shares in the firm over the past year, as he looks to fund a move into real estate investment. | Sagi, one of Israel’s richest men, has banked more than £780m by selling his shares in the firm over the past year, as he looks to fund a move into real estate investment. |
| His property portfolio includes London’s Holborn Links Estate and Camden Market, which he views as “a new Silicon Valley”, according to a spokesperson. | His property portfolio includes London’s Holborn Links Estate and Camden Market, which he views as “a new Silicon Valley”, according to a spokesperson. |
| Technology sector | Technology sector |
| Software | Software |
| Fixed-odds betting terminals | Fixed-odds betting terminals |
| The Sun | The Sun |
| Gambling | Gambling |
| news | news |
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