Global Stock Market Dip hits online casino operators in Europe

Stock markets around the world plunged dramatically last week as investors joined a sell off that was compared to the last big dip in the market in 2009. However, some analysts say the correction was due and that smaller, tolerable sell offs stave off the threat of total meltdown.

The dip in land-based casino stocks in the USA was reflected in the downward slide of UK online betting companies. Continuing its recent downward spiral was Betfair, which fell as low as 562.5p before closing at 567p, resulting in a loss of 3% on the day.

Among the other large and well-established firms experiencing a torrid time were Paddy Power and Ladbrokes, each down 4%, and William Hill, down a full 3.5%. 888 Holdings and Playtech also saw declines of 2% each.

Sportingbet stock fell a massive 7.5%, from 49p to 4p. The decline has been largely blamed on inaction by Ladbrokes, which initially revealed a preliminary takeover approach of its smaller rival in June. But its Chief Executive Officer, Richard Glynn, has remained tight-lipped since then, giving no public indication of whether the acquisition will go ahead.

However, the reason behind the decline of Bwin.party stock is not as clear-cut. The stock hit a new record low of 113.8p before recovering slightly to close at 116.9p, totaling a loss of 5.7% in one day.

Investors are thought to be nervous about Bwin,party's largely European interests. The online gaming developer reportedly generates eleven percent of its revenues in financially struggling and unsettled Greece. In addition, a further ten percent of Sportingbet's revenues are generated in similarly troubled Italy.