Shares in online gambling firms tumble on news of vaccine breakthrough

Online gambling operators saw share prices tailspin yesterday after drug manufacturer Pfizer announced trials of its Covid-19 vaccine would offer 90% protection against the virus. London-listed Gamesys Group, which closed at £12 on Friday, shed almost 10% of its value on Monday and is down another 3% this morning to £10.54 a share. Other casualties yesterday included 888 (down 6.81%), Evolution (down 4.6%) and Betsson (down 4.27%). Shares in Flutter Entertainment fell 3.2%, while GVC experienced a slight decline of 1.8%. In early trading today, Gaming Realms stock plunged more than 10% and Flutter lost another 5.5% in value. Yesterday’s vaccine news sent the FTSE 100 soaring 276 points as the embattled travel, leisure and hospitality industries saw big gains on global equity markets. Conversely, business that have thrived during the pandemic and enforced lockdowns, such as food delivery companies, online retailers and online gambling, fell sharply. In New York, shares plunged in teleconference firm Zoom, exercise start-up Peloton and subscription streaming service giant Netflix. However, Pfizer’s announcement was a shot in the arm for land-based gambling companies as shares in Rank Group – the owner of Grosvenor Casinos and Mecca bingo clubs – surged 23.5% to 115p. Across the pond, the value of major casino operators Wynn, MGM Resorts and Caesars Entertainment jumped 27.7%, 15% and 11.9% respectively. Meanwhile, Churchill Downs Inc., parent company of racetrack operator Churchill Downs, saw its stock climb 8.5%. There are hopes the vaccine breakthrough could soon lead to mass-immunisation to protect against Covid-19 and a return to some sort of normality by next spring.