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GamCare Issues Warning: Crypto Investments Can Lead to Gambling Harm

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GamCare Issues Warning: Crypto Investments Can Lead to Gambling Harm

GamCare has sounded a critical alarm, revealing that crypto investments have the potential to inflict gambling harm.

Brace yourself for an eye-opening exploration into this concerning issue.

Unveiling the Alarming Link Between Crypto Investments and Gambling Harm

GamCare, a prominent charity dedicated to addressing problem gambling, has issued a stark warning, shedding light on a disconcerting correlation: crypto investments can lead to gambling harm. This cautionary message comes after GamCare unveiled the results of a comprehensive YouGov study into investment behaviors and their impact.

The study, commissioned by GamCare, unearthed a troubling pattern. It revealed that individuals experiencing gambling harm were disproportionately involved in cryptocurrency investments. Specifically, 51% of problem gamblers had ventured into the world of cryptocurrency investments, a stark contrast to the 11% in the general public. Equally concerning was the fact that 40% of these individuals had incurred losses, while only 34% reported making a profit.

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Raminta Diliso, GamCare’s Financial Harm Manager, emphasized the critical nature of this issue, stating, “Cryptocurrency purchases serve as a means to diversify investment portfolios for many consumers. However, our observations from the National Gambling Helpline over the past few years indicate that serious harm can ensue when these investments spiral out of control. It’s essential to recognize that cryptocurrencies aren’t always the get-rich-quick opportunity some perceive them to be.”

Diliso further highlighted the volatility and unpredictability inherent in cryptocurrencies, likening their dynamics to those of traditional gambling. She explained that individuals sometimes get caught in a cycle of chasing excitement, akin to the rush experienced in gambling, rather than viewing cryptocurrency investments as a strictly financial endeavor.

The data revealed a concerning trend where gambling harm extended beyond traditional forms of betting and into the relatively new realm of online financial markets, including cryptocurrencies. Over two years, GamCare’s National Gambling Helpline documented over 200 calls related to problems stemming from these markets, with cases involving losses exceeding £50,000.

Harriett Baldwin MP, Chair of the UK government’s Treasury Committee, drew parallels between cryptocurrency trading and gambling. She warned that the fluctuations in cryptocurrency values posed significant risks to consumers, likening trading cryptocurrencies to gambling. Consumers, she asserted, should be fully aware that they could potentially lose all their invested funds.

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GamCare’s vigilance in highlighting this issue extends to its efforts regarding proposed changes in regulations for electronic gambling machines (EGMs). The charity firmly contends that relaxing limits on these machines, as proposed in the government’s Gambling White Paper, increases the potential for harm. The government’s proposal would permit larger land-based casinos to expand their EGM capacity to 80 machines, with smaller venues allowed up to 20 machines. It also seeks to revise the ratio of high-stakes to low-stakes gaming machines.

As GamCare continues to shed light on the intersection of crypto investments and gambling harm, the call for caution grows stronger. Stay tuned for further developments in this vital conversation.

Following the completion of her master's degree in publishing and writing, Amanda embarked on her professional journey as an online editor for a prominent gaming blog. Now, she has smoothly transitioned into the iGaming industry, where she plays a vital role in upholding the highest standards of writing in our news pieces. Working closely with senior management, Amanda ensures that our content meets the utmost quality standards.

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FDJ’s Acquisition of Kindred Group Shaping the Future of Global Gaming

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FDJ’s acquisition of Kindred Group, facilitated by regulatory approval and strategic shareholder engagement, signifies a transformative moment in the gaming industry. This deal exemplifies the intricate balance between regulatory compliance, shareholder value, and strategic growth ambitions. As the industry stands at the cusp of further consolidation and innovation, the FDJ-Kindred transaction heralds a new era of strategic realignment and competitive positioning in the global gaming landscape.


A Monumental Shift in Gaming Dynamics

The Swedish Financial Market Supervisory Authority (SFSA)‘s approval of Française des Jeux’s (FDJ) offer to acquire Kindred Group marks a pivotal moment in the global gaming and betting sector. This green light not only accelerates FDJ’s strategic expansion but also underscores the evolving landscape of international gaming regulations and corporate alignments.

Navigating Regulatory Waters

The SFSA’s endorsement is a crucial step in FDJ’s ambitious acquisition plan, setting the stage for a public offer slated to commence imminently. This regulatory approval highlights the meticulous scrutiny and compliance standards governing mergers and acquisitions within the sector, ensuring that such transactions align with market stability and shareholder interests.

A Call to Action for Kindred Shareholders

The forthcoming Extraordinary General Meeting (EGM) represents a critical juncture for Kindred Group, with proposed statutory amendments necessary for facilitating the acquisition. This meeting, aimed at achieving the requisite shareholder consensus, signals the importance of shareholder engagement in steering corporate direction and strategy.

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The Path to Acquisition: Shareholder Conviction and Strategic Vision

FDJ’s pursuit of Kindred Group, contingent upon securing 90% of total capital, reflects a strategic maneuver to consolidate its position in the global gaming market. The offer per share, valuing Kindred at approximately €2.6 billion, has garnered unanimous board endorsement and significant shareholder backing, illustrating the alignment of strategic interests and the perceived value of this consolidation.

Activist Influence and Strategic Realignment

The role of activist shareholders, notably Corvex Management, in advocating for Kindred’s sale underscores the dynamic interplay between corporate governance and shareholder activism. Their successful campaign for board representation and strategic evaluation reflects a broader trend of active investor engagement in shaping corporate trajectories.

Implications for the Global Gaming Industry

This acquisition not only exemplifies the financial and strategic considerations underpinning such deals but also highlights the regulatory complexities and shareholder dynamics involved. As the gaming industry continues to evolve, driven by technological advancements and regulatory changes, the FDJ-Kindred merger serves as a case study in strategic growth, market consolidation, and the pursuit of competitive advantage.

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