365 GAMING LIMITED

Executive Summary

365 Gaming Limited is a micro-sized player in the highly regulated UK gambling sector, currently showing signs of financial stress with negative net assets and constrained liquidity. Operating in a dynamic market shaped by regulatory pressures and digital transformation, the company faces significant challenges in scaling and maintaining competitiveness. Without substantial investment or strategic repositioning, its current financial condition suggests a precarious position relative to more established sector competitors.

365 GAMING LIMITED - Analysis Report

Company Number: 13888282

Analysis Date: 2025-07-20 16:58 UTC

1. Industry Classification
   365 Gaming Limited operates within the gambling and betting activities sector (SIC Code 92000). This sector encompasses companies engaged in running betting shops, online gambling platforms, gaming machines, lotteries, and other betting services. Key characteristics of this sector include high regulatory oversight from the UK Gambling Commission, significant capital investment for technology and compliance, and sensitivity to consumer discretionary spending and economic cycles. Increasingly, digital transformation and responsible gambling initiatives are reshaping this industry.

2. Relative Performance
   As a private limited company incorporated in 2022, 365 Gaming Limited is a very young and small player in this sector. Financially, the company reported net liabilities of £10,736 as at 31 March 2024, a decline from net assets of £5,383 the previous year, indicating a worsening balance sheet position within two years of operation. Current liabilities (£22,076) significantly exceed current assets (£501), resulting in a negative net working capital of £-21,575. This liquidity strain is notable compared to typical established gambling entities, which generally maintain stronger working capital to support operational and regulatory costs. The company’s fixed assets have decreased from £36,071 to £13,381, pointing to asset disposals or write-downs. Given the unaudited abridged accounts and a single employee (the director), the company appears to be a micro-sized entity with limited operational scale.

3. Sector Trends Impact
   The gambling sector in the UK is undergoing rapid transformation driven by regulatory tightening, especially around online gambling advertising, customer verification, and affordability checks. Post-pandemic recovery has seen a rebound in betting activities, but increasing regulatory scrutiny and taxation pressures weigh heavily on profitability and cash flow. Moreover, the sector faces rising competition from both established operators and new entrants leveraging technology platforms. Consumer preferences are shifting towards online and mobile betting, which require significant technological investment. For a small firm like 365 Gaming Limited, these trends represent both risk and opportunity; failure to invest adequately in compliance and digital infrastructure could limit growth and viability.

4. Competitive Positioning
   365 Gaming Limited currently occupies a niche or follower position rather than a market leadership role. Its micro-sized scale, negative net assets, and heavy current liabilities relative to cash suggest limited competitive strength against larger, well-capitalised gambling firms with extensive product offerings and established customer bases. The director’s full control indicates a closely held, possibly owner-managed business, which can be agile but may lack the scale and resources needed to compete effectively in a capital-intensive, regulated industry. The company’s financial trajectory—from positive net assets to net liabilities within two years—raises concerns about operational sustainability unless addressed by capital injection or operational improvements. Compared to sector norms, which typically require robust liquidity and investment in technology and compliance, 365 Gaming’s financials reflect early-stage development challenges and potential vulnerability.