Gambling firms take a hit over ban on adverts in live sport broadcasts
SHARES IN gambling firms have taken a hammering after the biggest bookies reportedly agreed to a ban on adverts during live sports broadcasts.
Ladbrokes-Coral owner GVC tumbled 5 per cent and 888 Holdings sank 4 per cent, while Paddy Power Betfair and William Hill were also 3 per cent lower amid fears their earnings would take a knock from the ban.
The sell-off came after BBC Sport reported the Remote Gambling Association – which includes Bet365, Ladbrokes and Paddy Power among others – struck a deal to agree a “whistle-to-whistle” TV advertising ban.
The move follows political pressure about the amount of betting advertising on television, with more than 90 minutes of adverts shown during the football World Cup last summer.
It is understood the deal will ensure no adverts will be broadcast for a defined period before and after a game is broadcast.
It will reportedly include any game that starts prior to the 9pm watershed but ends after that time. However, the RGA denied an agreement had been finalised.
Russ Mould, investment director at AJ Bell, said: “Investors are clearly betting that earnings will be hit.”
Brokerage Davy Research reportedly estimates that Paddy Power and GVC both spend between £40m and £50m a year on TV advertising.
It is said the impact of the ban will be mostly felt in football given the financial value of the sport to both the gambling companies and broadcasters. But it is understood that horse racing will be exempt from the restrictions because of the commercial importance of gambling on its viability, while all other sports will be included.