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Bookies battered as Premier League joins wave of coronavirus cancellations

Last updated: 12:43 13 Mar 2020 GMT, First published: 11:34 12 Mar 2020 GMT

Flutter Entertainment PLC -
Manchester City's game against Arsenal was the first Premier League fixture cancelled due to the virus

Shares in bookmakers such as William Hill PLC (LON:WMH) continued to be hammered on Friday after the Premier League joined the swathes of sporting events being cancelled around the world because of coronavirus.

After Arsenal head coach Mikel Arteta and Chelsea winger Callum Hudson-Odoi tested positive for Covid-19, the Premier League said the clubs had unanimously decided to suspend the league with the intention of returning on 4 April, subject to medical advice and conditions at the time.

The FA, the Premier League and EFL agreed that all professional football would be cancelled until at least 4 April.

With Liverpool on course for a first title since the 1980s, speculation was rife about whether they will be awarded the title if the 19/20 season has to be cancelled.

European football and other sports

Wales' Six Nations game against Scotland this weekend, England's imminent cricket tour of Sri Lanka, the IPL cricket tournament and the Masters golf tournament in Augusta were also all postponed on Friday.

A day earlier, Spanish football authorities said there would be no La Liga games for at least the next two weeks, while Italy called off all sporting events for the rest of the month as the whole country is effectively in lockdown.

La Liga made the decision after Real Madrid's players were quarantined and there were reports of possible cases at other clubs.

UEFA said it was discussing the possible suspension of the Champions League and Europa League, though it was not intending on making a decision before a videoconference call with its members next Tuesday.

In Formula 1, Lewis Hamilton’s McLaren Racing team also confirmed on Thursday that it had withdrawn from the Australian Grand Prix, following the positive test of a team member for the coronavirus.

Under pressure from players, the ATP men's tennis tour was suspended for at least six weeks because of the outbreak, with all tournaments up to and including the week beginning 20 April nixed, with the women's equivalent expected to follow.

Overnight in the US, the NBA said all games are off until further notice after a Utah Jazz player tested positive for coronavirus shortly before the start of a game.

Effect on gaming companies

With Paddy Power and Betfair owner Flutter Entertainment PLC (LON:FLTR), Ladbrokes owner GVC Holdings (LON:GVC) and William Hill deriving 48-78% of group revenue from sports betting, investors were cashing in their chips.

Shares in Flutter tumbled 15% on Thursday and another 1% on Friday to 6,636p, around a seven-month low.

William Hill's plunged 22% on Thursday and another 5% on Friday to new all-time lows below 90p, while GVC fell 18% on Thursday and another 5% on Friday to 492.1p, its lowest since 2016.

Playtech PLC (LON:PTEC), which owns the SNAI Italian sports betting chain but also has a strong focus on financial trading including owning Markets.com, bounced back 6% to 187.9p on Friday after losing 15% the day before.

Analysts at Citigroup estimated a three-month sporting event ban and retail closure could cut group revenues 16-20% and underlying profits by 38-55%. This assumes no cost mitigation, nor revenue substitution.

"Flutter has the greatest exposure to cancellations due to its higher sports betting mix vs gaming, despite a smaller retail footprint."

On US sensitivities, Citi noted that NBA games dominate the first-quarter of the US sports calendar.

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