No pain, no game

7 November 2017 By Liam Proud Follow @liamwardproud

A government squeeze on betting machines known as the “crack cocaine of gambling” could knock 20 pct off bookies’ operating profit. Extra regulation makes scale more important. Once the rules are clear, targets like Ladbrokes will be easier to value. Expect a flurry of deals.

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The maximum value of stakes on certain gambling machines in British betting shops could be sharply cut in response to concerns that the terminals fuel addiction, the government said on Oct. 31, announcing a consultation on these fixed-odds betting terminals.

The top stake could be reduced from 100 pounds ($131) to between 50 pounds and as little as 2 pounds. "Given the strong evidence and public concerns about the risks of high stakes gaming machines on the high street, we are convinced of the need for action," said UK minister Tracey Crouch. The government consultation will take 12 weeks.

British online gambling company GVC is selling its Turkish operations for up to 150 million euros, Reuters reported on Nov. 2. "If we wanted to participate in consolidation, be it Ladbrokes or anybody else, or be a target ourselves, then this (the Turkey sale) is clearing the path for that", GVC Chief Executive Kenny Alexander said.

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