19th Oct 2018 11:06
LONDON (Alliance News) - Shares in Webis Holdings PLC dropped on Friday as it said its US subsidiary WatchandWager has no choice but to end its wagering services to an unnamed syndicate following a commercial dispute.
Shares in the gaming group fell 18% at 1.80 pence on Friday.
As a result, WatchandWager has refunded the syndicate's player balances, totalling USD10 million. In the absence of new deposit funding, under regulation no additional wagers can be accepted from this syndicate.
As a result, Webis Holdings expects to see a reduction in gross margin for the year ending May 2019 by USD800,000, Post-refund, the current cash on the Webis balance sheet stands at around USD3.1 million.
WatchandWager is now in the process of streamlining the operations and add new business efficiencies.
The subsidiary will work to secure replacement business-to-business clients, renew and acquire more US state regulated gaming licenses, and continue developing and expanding the Cal Expo racetrack operation.
Related Shares:
Webis