Stride Gaming, one of the leading online bingo platforms, is facing a possible fine of up to £4m due to compliance issues. This comes after the company disclosed that it had received a notification from the Gambling Commission regarding a significant financial penalty related to the activities of one of its brands in the past. The operator, which holds a sizable 25% share of the UK’s online bingo-led casino market, witnessed a sharp drop in its market value last month following this announcement.
In the latest update, Stride Gaming stated that it has made a provision of £4m to cover the impending fine. The Gambling Commission is expected to reach a final decision on the penalty before the end of the year. Neither the operator nor the Commission has revealed the name of the brand at fault or disclosed the specific charges. The Commission will refrain from commenting on the matter until it is resolved.
Among Stride’s popular brands are Kitty Bingo, Lucky Pants Bingo, and online casino Spin and Win. Despite the compliance setback, the company anticipates reporting net gaming revenue (NGR) of at least £85m and adjusted EBITDA of over £16m in its upcoming financial results for the year ending August 31. The projected NGR is slightly higher than the revised figure of £82m from the previous year, while adjusted EBITDA is expected to dip by approximately 20%. Stride Gaming attributes this resilient performance to the challenging trading conditions and the costs associated with implementing responsible gaming measures.
CEO Eitan Boyd expressed satisfaction with the group’s trading performance in the second half of the year and emphasized their focus on achieving further market share growth in the UK through product innovation and increased player loyalty. Boyd highlighted the strength of Stride’s proprietary technology and business analytics capabilities, along with their experienced team, as factors contributing to their future confidence. However, the company’s shares experienced an almost 8% decline on Wednesday morning, currently valued at 90p, significantly lower than their year high of 266.5p.
Eitan Boyd also mentioned Stride’s B2B partnerships via its Stride Together division in a recent interview, signaling an increasing emphasis on such collaborations.
