The buying opportunity in 'sizeable and stable' UK gaming sector

SVM's Lawson shares views

The UK gaming sector has grown organically and by mergers in recent years, and now boasts several mid-cap businesses.

In March, the creation of PaddyPower Betfair by merger saw it gain its first FTSE 100 member. But, since then, investors have become more concerned and taken some profits. Not all in the sector have been hit - GVC is still near highs - but Paddy Power Betfair, Playtech and Ladbrokes are down more than 10%. The concerns range from fears of increased regulation, to increased competition and a weaker consumer background. These concerns have always plagued the industry, but over the years it has confounded critics. What has in the past been a fragmented industry, with some operations in a...