Stride Gamins Prepares for a Hefty £4m Fine from UK Watchdog. Stride Gaming (SG) has issued a warning to its investors. The online gambling company prepares to pay a hefty £4 Million fine. The penalty comes as a result of one of its subsidiaries not following its obligations. The UK Gambling Commission (UKGC) has already warned the operator earlier. But this time, it looks like the company won’t be able to escape the penalty.
In total, the UKGC warned 17 operators. The raised finger came this January. It followed a review on anti-money laundering and social responsibility. Later in June, the body’s new CEO Neil McArthur went even further. He said operators face “relentless escalation” in financial penalties. In essence, he promised big fines, if they don’t improve their approach to compliance.
Earnings went down
The news broke last Wednesday, as the UK-listed gaming company publish a trading update. The paper previews SG’s financial results for the last 12 month ending this August 31st. In fact, it’s only a preliminary report, yet, it forecast the numbers expected in the official annual paper, published in November.
According to the report, SG expects an annual revenue of £85 Million. This number would be £3 Million higher than the result in the previous year. Even so, the preview forecasts earnings of around £16 Million, which is down by £4 Million from the original plan. And these £4 Million are exactly those that are set aside to pay the fine.
In early August, Stride informed that it received a warning from the UKGC. It faced a “significant financial penalty after a review of the manner in which it carried on its activities.” The company back then commented that it’s not a final decision. Yet, the current situation suggests, it’s ready to accept the penalty.
If the watchdog confirms the amount of the fine, it would be the third biggest in recent years. 888 Holdings received the largest – £7.8 Million in August 2017. Also, this February, William Hill had to pay £6.2 Million to the regulator.