Fonix maintains expectations amid Irish regulatory uncertainty

18th Oct 2024 08:43

(Sharecast News) - Fonix updated the market on its operations in the Republic of Ireland on Friday, ahead of an expected regulatory change.

The AIM-traded firm said the Gambling Regulation Bill, under review in the Irish Parliament since December 2022, had now been approved by the Oireachtas and was set to become law once signed by the President of Ireland.

It said the legislation would establish a new Gambling Regulatory Authority to oversee the licensing and regulation of gambling, betting, and certain lotteries.

However, the final version of the bill did not explicitly mention broadcaster prize draw competitions, particularly those that include a 'no purchase necessary' route of entry.

That, the board said, had created uncertainty for Fonix's broadcaster clients in Ireland, who were the primary source of the company's non-UK revenue in the 2024 financial year.

Those clients were seeking legal advice to assess whether their operations would be affected by the new law.

For now, Fonix said it expected its Irish services to continue as usual, though acknowledged that could change as the regulatory framework became clearer.

As a result, the company said its market expectations for the current financial year remained unchanged.

At 1046 BST, shares in Fonix were down 4.35% at 234.35p.

Reporting by Josh White for Sharecast.com.