The US subsidiary of pool wagering (totalisator) specialist Webis Holdings PLC (LON:WEB) has fallen out with a customer.
As a result of the commercial dispute with a syndicate that cannot be named for commercial reasons, Webis’s subsidiary has stopped providing wagering services to the customer and returned around US$10mln of punters’ money that was being held on account.
READ: Webis welcomes US Supreme Court decision to lift the ban on sports wagering
This development expects this development will result in a reduction in gross margin for the financial year ending in May 2019 of arounD US$0.8mln.
After returning money to the punter, the cash on the Webis balance sheet stands at just over US$ 3.1mln.
Webis has reacted to the termination of relations with the syndicate by streamlining the operations of its US subsidiary, WatchandWager.
Shares in Webis were the top fallers in London on Friday morning, down 15.9% at 1.85p.
The BEST BONUS on greyhound racing: 3% CASH BACK! @watchandwager Ts&Cs: https://t.co/R4adnsSe9n pic.twitter.com/usmhOSsaSv
— WatchandWager (@watchandwager) October 19, 2018