- “We are currently reviewing recent Russian regulations that will likely restrict the number of Russian payment processors who elect to engage with offshore online gaming operators.”
- Russia is estimated to make up 10% to 12% of the company’s revenue.
- Efforts by the regulator to clamp down on offshore-licensed online gambling activity is nothing new.
- The company has multiple mitigation strategies and has no plans to withdraw from the market.
The Stars Group, parent company of PokerStars, warned investors this week that anticipated headwinds in its Russia-facing online gaming operation is expected to impact its business in 2018.
While executives went to lengths on Wednesday’s earnings call to assure investors that the company had taken measures to mitigate the effects, 2018 guidance was materially adjusted to account for what was expected to be payment processing blocking starting in May of this year.
“We are currently reviewing recent Russian regulations that will likely restrict the number of Russian payment processors who elect to engage with offshore online gaming operators,” said Brian Kyle, CFO for The Stars Group, in a prepared statement for analysts on Wednesday. “We are actively monitoring this situation and proactively developing a strategy to address any potential negative outcome.”
