Playtech shares drop on Malaysia online news

Playtech’s shares dropped by around 8.5 percent to 635.5p after the Malaysian government blocked around 170 online gambling sites. The blocking of the sites is said to be just a temporary move on the Malaysian government’s part since online gambling is not regulated by Malaysian law. New legislation is being considered, with hopes that online gambling will be approved.
Speaking at the launch of the Judicial and Legal Training Institute Speaker Series last month, Attorney-General Tan Sri Abdul Gani Patail stated that Malaysia’s new laws needed to take action in reducing illegal gambling. “The problem is that many illegal gambling activities are done online. We need to have a new set of laws or amend the old laws”, he said.
Playtech does not break down its earnings by country in Asia, but said in its last quarterly earnings report that it generates around 36 percent of its revenues from the region. Analysts estimate that Malaysia represented about 8.4 percent of Playtech’s revenues two years ago, and that number may now be higher. In a statement, Playtech said, “The company is monitoring the position closely and, regardless of the potential impact of any changes in the Malaysian market, remains confident of meeting the latest market consensus... for 2014 and beyond.”