British bookmaker William Hill Plc said it expected full-year operating profit to be lower than last year and that it was in advanced discussions to invest in gaming software company Openbet. Shares in the company, which offers bets on royal weddings, general elections and reality TV, fell as much as 12.6 per cent on the London Stock Exchange on Wednesday morning.

Tougher regulatory environment and advances in mobile technology are changing the face of the UK gambling industry, with physical bookmakers’ shops closing as companies focus on boosting online sales. William Hill has slipped down the pecking order after most of its rivals such as Ladbrokes and Betfair announced merger deals.

Profit at William Hill’s online segment, which contributes about 35 per cent to the overall revenue, is seen lower by £20-£25 million , the company said. The company said measures to reduce the amount of time spent by punters online had an impact on its online business, while the worst Cheltenham festival in history led to lower-than-expected gross win margins. William Hill expects 2016 operating profit to be in the range of £260-£280 million , compared with £291.4 million last year, it said in a statement.

Reuters