The stock of Paysafe dropped 40% on Thursday after the business lowered its sales forecast for 2021.

The company, which is funded by Blackstone and CVC Capital, lowered its full-year sales projection for 2021 to $1.47 billion to $1.48 billion, down from $1.53 billion to $1.55 billion before. According to consensus estimates, $1.54 billion is predicted. Paysafe also lowered its 2021 gross profit and adjusted earnings estimate.

The drop was blamed on "gambling legislation and downturn in key European regions," as well as performance issues that affect its digital wallet segment, as well as the breadth and timing of new e-commerce client agreements.

Paysafe's third-quarter revenue declined 1% to $353.6 million, missing analyst expectations of $370.59 million. Earnings after adjustments declined 1% to $106.4 million.paysafecard Poker | How to Play Online with paysafecard

The total volume of payments increased by 19% to $31.1 billion.

"In the third quarter, we reported Adjusted EBITDA in line with our expectations, despite worse than projected revenue, reflecting both market and performance problems within the digital wallet business," said Philip McHugh, CEO of Paysafe.

"While the recent trend will result in a revised financial outlook, we continue to observe solid momentum across the organization." Our ability to win in high-growth, disruptive sectors like online sports betting and cryptocurrency continues to strengthen, as does our ability to meet our cost and technology platform targets."