New market entrants spark online supplier price war

An influx of new third-party suppliers is driving intense competition in Asia’s online gambling space, with a ferocious price war driving what some onlookers are describing as an unsustainable “race to the bottom.” The most high-profile casualty of the harsher competitive landscape has been Playtech. In July, the Isle of Man-headquartered company issued a profit warning which caused its share price to nosedive by around 25 percent in a single day. In a statement at the time, Playtech said it expected revenue from Asia in 2018 to be around EUR70 million lower than original expectations, blaming the impact of “an increasingly competitive backdrop”. “Towards the end of the first half, this market has seen a particularly aggressive pricing environment from new entrants to the market and this has impacted revenue,” Playtech said. It was the company’s second profit warning in eight months; Playtech’s share price topped GBP10 in June 2017, but now sits...

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