Ladbrokes owner Entain has today warned on its online net gaming revenues for the third quarter and the full-year, as the UK gambling firm grapples with ongoing regulation in the industry, particularly in the UK, and slower growth in Australia and Italy.
Shares in Entain dropped about 4% in early trading.
The British government recently laid out long-awaited plans to crack down on problem gambling.
Its proposals would see new online stake limits, increased affordability checks on customers and a new statutory levy on betting firms to fund research, education and treatment for problem gamblers.
Regulatory headwinds were persisting longer than it had expected, Entain said today, adding that adverse sporting results were also impacting its sports margins during September.
The owner of online brands bwin and partypoker, said it expects third-quarter online net gaming revenue to be down by "high single digit percent" on a pro-forma basis.
It also expects group online gaming revenue for the full year to be down "low single digit percent" on a pro-forma basis.
The company had earlier forecast annual growth in the low to mid-single digit.
Meanwhile, sports-betting service BetMGM, which Entain jointly owns with MGM Resorts was on track to report positive core profit in the second half and full-year gaming revenues at the top end of its expectations, the company said.
The update also comes as British authorities are investigating the company in relation to potential bribery offences at its former Turkish unit, which Entain, formerly known as GVC, sold in 2017.
In August, the London-listed firm said that it had set aside £585m for a potential settlement, which would be paid over four years and will impact the company's bottom line across the periods.
