UK gambling shares rise after FOBTs change

Gambling firms saw their shares increase after the Prime Minister announced the delay change.

UK.- The UK government revealed on Wednesday its decision to backtrack the delay on the reduction of the maximum stake on fixed odds betting terminals (FOBTs). After the announcement, shares in UK gambling firms hit their highs and extended gains.

On Wednesday afternoon, Paddy Power Betfair’s shares increased more than 5% and were on track for their best day since May 2018. Before Theresa May revealed the decision in Parliament, the shares were up 3.6%. Moreover, William Hill increased as much as 2.6% a few minutes after the announcement and later went up 1.7%.

The initial cut on the maximum stake was set for October 2019, but after pressure from different sectors of the government, Prime Minister Theresa May revealed that the decision had been backtracked and that the £100 to £2 cut will be brought forward to April 2019.