LONDON – British gambling companies said Thursday that their financial performances will be negatively affected following a decision by the United Kingdom government to reduce the maximum bets that can be placed on fixed-odds betting terminals to 2 pounds ($2.70).
The UK Department of Digital, Culture, Media and Sport said it decided to reduce the maximum stakes on fixed-odds betting terminals, described as the “crack cocaine of gambling,” from 100 pounds following a government review.
GVC Holdings PLC said it expected group earnings before interest, taxes, depreciation and amortization to be negatively affected by 120 million pounds as it repositions its business to manage the change in legislation.
William Hill PLC said the reduction of the maximum stake could cause a 35 percent to 45 percent fall in its total net gaming revenue, adding that about 38 percent of its retail estate could become loss-making as a result.
Paddy Power Betfair PLC said the new stake limit could cause a 33 percent to 43 percent decrease in its total machine gaming revenue.