After a state government's unexpected move to impose identification checks and gaming limitations on poker machine users, Endeavour Group, Australia's largest pub owner, had its stock drop to an all-time low on Monday.
The state of Victoria in Australia announced over the weekend that it will require poker machine users to register for an ID card in order to minimize problem gambling and prevent money laundering. It would require venues to close for the night and slow down their machines.
Due to the lack of disclosure on poker machine revenue, analysts were split on the extent to which this would affect Endeavour, the largest owner of poker machine licenses in the country. About 40% of the company's profit in the December 2022 half came from its "hotels" business.
Stocks of Endeavour Fall to All-Time Low
By midday, Endeavour shares had fallen 10% to A$5.66 after being split off from Woolworths in 2021. This was the worst decrease in an otherwise flat market.
According to sportsbook reviews and news sites, the move increases the pressure on other jurisdictions, especially New South Wales (NSW), to adopt similar measures in response to public calls for more control of poker machine gaming. A Victorian-style crackdown has been rejected by New South Wales' newly elected Labor administration.
Sydney-based It is "impossible to speculate on the impact of these laws," Endeavour stated, but the company said say it was collaborating with other jurisdictions that were testing out similar policies.
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