Government at it again7 Apr 2014 13:20
SHARES in bookmakers William Hill and Ladbrokes dropped on Monday morning following the news that David Cameron is looking to stamp down further on gaming machines in betting shops.
The prime minister is seeking to curb what he believes are the excesses of the betting and gaming industry and the markets have reacted by shaving just over two per cent off the share price of Ladbrokes (down 3p to 136.9p) and nearly two per cent off William Hill (down 6p to 338.7p) at 9am on Monday.
The predicted move against gaming machines, which could be revealed as early as Wednesday, comes shortly after the surprise announcement from the chancellor George Osborne to raise duty on the machines to 25 per cent from 20 per cent in last month's Budget.
Furthermore, Cameron is thought to be unhappy with the voluntary code of conduct recently brought in by the Association of British Bookmakers believing it does not go far enough to protect players.
A strengthening of the code to make it mandatory instead of voluntary is thought to be among Cameron's plans while the Gambling Commission are investigating whether limits on the machines are too high.
Commenting on the possibility of a further move against gaming machines, Goodbody's Gavin Kelleher said: "It looks like it could be another volatile week for UK bookmakers and given the uncertainty William Hill and Ladbrokes in particular are best avoided until there is some form of clarity."