GVC warns of Ladbrokes closures if stakes are slashed

Business News

Online gambling firm GVC has warned it would not be able to prevent Ladbrokes Coral betting shops from closing if the Government drastically cuts stakes on controversial fixed odds betting terminals.

The gambling industry has warned of wide-spread betting shop closures if the Government decides to cut stakes on FOBT machines to £2 from £100 now. GVC was a purely online business but its purchase of Ladbrokes Coral means it now has exposure to the UK high street.

Chief executive Kenny Alexander said GVC had protected itself by structuring the deal so that it would pay between £3.2bn and £4bn for Ladbrokes depending on the outcome of the Government review.

But he said this didn’t mean the company would be immune if a £2 stake was chosen.

“Shops would close and it would mean people being made redundant,” he said.