RE: Articfox22 Jan 2014 13:42
Well this is how I see the situation. The debate on the current usage of FOBT's has caused uncertainty over the future of betting shop profitability and over course future dividends. This has led to shorting of gaming shares. In the short very term (weeks) a solution to the issue will not be reached, leading to a continued down trend. The only news update from Will Hill is there 2013 final results on Feb 28, which we basically already know and weren't as good as hope in Q4 so this wont help much either.
However, in my opinion an changes to FOBT regulation wont have a big an impact as many think. Bad gamblers are still bad gamblers, sure it may take them slightly longer to lose their money on these machines, but at least they can enjoy their tea while they do it.
The type of gambler who bets £100 on a roulette machine is desperate to make money as quickly and easily as possible, if not the machine, then the next horse they fancy. This money will still be wagered, just on a different platform, online casino bets from mobiles or any array of events.
Furthermore I believe Q1 should be very profitable for bookies. Already we have seen a number of upsets in the Austrailian Open tennis. Djoko, Williams, Azarenka all out. Barca and Ath Madrid both drawing at the weekend. The return of European football will put paid to these winning streaks for the top clubs in the prem which resulted in bookie profits being hit. Man City, Arsenal, Man Utd, Tottenham and Chelsea all still in CL/EL respectively and it will lead to league hangovers/distraction.