Shares in London Capital Group, the owner of the leading financial spread betting company Capital Spreads, plummeted over 10% on Tuesday following the news that Paddy Power are reviewing their financial spread betting business. This is the second financial blow for LCG in February after they were ordered to pay £7.7m by the financial ombudsman. Shares are down over 40% in February alone.

Paddy Power, owner of PaddyPowerTrader, is a white label of London Capital Group and account for approximately 17% of all LCG’s live accounts according to the regulatory filing. If Paddy Power decide to withdraw from financial spread betting, LCG will try to work out a deal to acquire the customers. Although in this early stage it looks like it is about money and Paddy Power will try to get a better deal.

LCG is home to some well known white labels, such as Paddy Power, Party Gaming (InterTrader), TD Waterhouse, Saxo Bank and much more. If Paddy Power manage to get a better deal with LCG it will be just a matter of time until others will do the same to boost their profit margin, leaving LCG licking their wounds.

What does it mean for Paddy Power clients? Well… it’s just an initial stage of review and no agreement has been reached. Unfortunately, there’s a possibility that they will be transferred to another broker and if you don’t want to see what the future holds we advise you switch from Paddy Power to a broker of your choice.