As reported by: Reuters
Internet gambling firm Leisure & Gaming warned on Monday a string of unfavourable NFL football results had hit betting margins, causing stocks across the sector to fall.

L&G said its first-half pretax profit fell 8 percent to $6.8 million (3.6 million pounds) due to a non-recurring increase in head-office costs, and warned it would not meet expectations for the year.

"Anecdotally, I can confirm that our competitors are feeling the same pinch," Chief Executive Alistair Assheton told Reuters in an interview, adding that the problem was a typical headache for bookmakers of favourites winning repeatedly.

"I was speaking to one of our rivals the other day who was saying we were lucky that ours (sportsbook margins) were positive," he added.

L&G shares fell 15.7 percent to 37 pence by 10:03 a.m., while its comments on tough sportsbook margins hit sentiment for rivals like Sportingbet, whose shares fell by as much as 5 percent.

Analysts at Altium Securities said, "In total the business is now some $2 million adrift of expectations."

Assheton said the tough margins were all part of the sector's normal volatility. Recent legal action in the United States against its rivals Sportingbet and BETonSPORTS had had no impact on L&G's volume of business, he added.


Article By: Reuters