The Financial Conduct Authority's investigation into Plus500 doesn't prevent the financial trading operator from recruiting UK customers, but through its Cyprus licence thanks to the regulatory passporting it benefits from under the EU's MiFID rules. As a result further regulatory interest into the workings of the financial trading and betting sector is almost certain, writes Scott Longley.
Playtech moved in quickly to snap up Plus500, describing it as "a unique opportunity", and is now a major player in the financial trading space. Much is made of the blurring of lines between trading and gambling, but both Playtech and Plus500 still very much operate on igaming metrics.
Playtech has been talking up the opportunities offered by forex and binary trading since its acquisition of financial trading platform TradeFX as it looks to roll out trading and financial betting products to its licensees. But what does the sector think of a vertical that can be as volatile as it can be profitable?
The UK's Financial Conduct Authority will eventually be tasked with regulating binary options once the consultation and interim period are done with. However, the resulting uncertainty as to which regulations binary options fall under as an igaming product will leave the FCA, Gambling Commission and operators unhappy and in limbo.
Binary options are fast becoming a key vertical in the igaming industry. As the binary trading market becomes increasingly saturated and challenging, the search competition in this industry has experienced a drastic shift.
Binary options trading platform provider Tradologic has appointed international gaming and betting consultancy KMi Gaming to help maximise its industry presence in the UK, Ireland and wider European region.
Gaming technology supplier Intralot has unveiled impressive interim financial results for the first half of 2013, with earnings before interest, tax, depreciation and amortisation leaping by nearly 20% to €97.6 million ($130.8 million) year-on-year.