William Hill Advances As US & Online Offset £2 FOBT Hit
Fiona Cincotta November 21, 2019 11:18 AM
Regulation is becoming an increasingly big headache for investor in William Hill and the gambling sector as a whole. In early November a cross party parliamentary group recommended a similar £2 limit to inline gambling transactions. Needless to say, shares tanked heavily. We can see from these results that online is an important part of William Hill's strategy. If this too is hit with £2 limits the impact could be significant.
With UK regulation increasingly under the spotlight, international expansion is more important than ever for gambling firms and their profitability.
After an attempt to break into Australia that is best forgotten, William Hill appears to be doing better with cracking the US, where the law changed in 2018 to allow sports betting in some states.
Going forward investors should keep a close eye on the US expansion. If the £2 online limit comes into play, William Hill will be even more dependent on the US.
Levels to watch
Despite a 10% fall at the beginning of the month, William Hill bounced off a low of 165P and is clawing back those losses. The stock is up 1.4% following today’s results. A breakthrough immediate resistance at 184p could open the doors to 193p before targeting 206p. On the downside support is at 165p.
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