Mobile casino operator LeoVegas saw its share price fall by nearly one-quarter after warning of the increasing cost of regulatory compliance.

On Wednesday, the Stockholm-listed LeoVegas reported revenue of €78.6m, a 41% increase over the same period last year, while earnings rose €1.4m to €9m. The surge reflects the company’s UK online casino acquisitions of Royal Panda and IPS (the latter since rebranded as Rocket X) plus the launch of its UK-facing betting brand BetUK. Organic growth was up a more modest 7%.

But investors dropped LeoVegas stock like a hot potato following the company’s earnings report, sending the shares down 24.2% at the close of Wednesday’s trading.

The source of the consternation was LeoVegas’ warning that tightening regulatory compliance, particularly in the UK market, was having “an adverse effect on growth.” The LeoVegas brand reported its UK market revenue falling 32% year-on-year, while the Royal Panda and Rocket X brands also suffered revenue declines.