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Is £100 Every 20 Seconds Too Much?

08 December 2016 by lberuti

Six months ago, a parliamentary group began an enquiry into fixed-odds betting terminals (FOBT). In the report they published today, they recommended tighter controls on the FOBT of UK gambling companies. They made a case for cutting the stake to as low as £2 from the current £100 maximum level and slowing down the speed at which gamblers can place their bets from once every 20 seconds at present. They also suggested the number of terminals in betting shops should be reviewed. According to analysts, about half of LADLN’s ( Ladbrokes Plc ) retail revenues come from betting machines, and about half of that comes from the type of machines under scrutiny. Even though the parliamentary group was described as “a small group of anti-FOBT MPs” who have “little credibility in terms of independence” by LADLN, investors considered the possibility of a clampdown on machines as a real threat and they sent LADLN’s 5-year risk premium 31.5bps wider at 341bps. Meanwhile, the broader credit market traded sideways in the morning awaiting the ECB meeting. Once the decision to extend the QE program was announced, iTraxx Financial Senior and Subordinated outperformed, but variations were minimal given such an outcome for the central bank meeting had been largely priced in the market since the beginning of the week.