Ladbrokes-Coral Faces Massive Loss of Earnings Due to Betting Machine Review
A forthcoming government crackdown on high-stakes gambling machines is threatening to wipe a quarter off Ladbrokes Coral’s earnings in the first year after their merger.
Ladbrokes revenue from the machines makes up 60% of UK revenue and it is thought that the political threat could wipe £100 million from pre-tax earnings next year. The hit comes as the newly formed company begins to pay off the £1.2 billion debt from the merger and put the bookie closer to the limits of its lender agreements that expected.
At present there is a lot of pressure on the government to reduce the maximum stake on betting terminals from £100 to just £2. Even if the maximum stake was cut to £10 it would still result in a £100 million reduction for the company. It is thought that new rules may come into play in the early months of next year.