PMs Crack Down on ‘Crack Cocaine’ of Gambling, Stocks Plummet
British bookmakers fear the worst is yet to come as a group of MPs have called for a tougher stance on fixed odds betting terminals, referred to as the “crack cocaine of gambling”.
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The machines are deemed highly addictive as they allow individuals to place bets at €120 every 20 seconds. For bookmakers the likes of William Hill, Ladbrokes and Paddy Power, these fixed odds terminals are among the most profitable.
While policymakers are expected to rule on the future of the machines early next year, MPs are calling for an even more aggressive review and actions.
From the Telegraph:
Carolyn Harris, chair of the parliamentary group, said that there is “a clear case” for the maximum stake on fixed oddes betting terminals to be slashed from £100 to just £2. Many industry analysts had assumed that the triennial review would result in the maximum stake being cut to £10 and estimated the future earnings of bookmakers on that basis.
“This call is supported by many members of Parliament from all political parties and in both houses of Parliament,” Ms Harris said. "It is also supported by a significant majority of the public."
William Hill's shares fells 8pc to 286.50p and Ladbrokes tumbled by more than 7pc to under 113p following this news.
The Telegraph also noted that Morgan Stanley’s Vaughan Lewis confirmed Ladbrokes Coral has the industry’s largest exposure to the fixed-odds gambling terminals, estimating that even cutting the maximum stake to £10 could slash its earnings per share by 26pc.
- Aaron Goldstein, Gambling911.com
