Gvc Share Discussion Threads

[loganair] 25/4/2018 23:14

Betting shop staff and MPs call on government to reject £2 FOBT stake:


Betting shop staff were joined by MPs in Westminster on Wednesday to demonstrate against the possibility of the maximum FOBT stakes being cut to £2 from £100.

Holding placards, staff from Ladbrokes Coral, William Hill and a number of independent firms took part along with Conservative MPs Laurence Robertson and Philip Davies and Labour MP Chris Evans.

The demonstration was staged against the backdrop of the government's gambling review, the results of which are expected to be published in the next few weeks, including a final verdict on what level FOBT stakes should be set at.

The government's consultation set out a range of options from a £2 maximum – which campaigners against the controversial machines have called for – to £50.

The majority of the retail betting industry claim that should the government decide on a £2 stake it would amount to a de facto ban on the machines, leading to half of all betting shops closing with 21,000 job losses, as well as millions of pounds of lost tax revenue and income for racing.

Vicky Knight, who works for Jenningsbet, said: "We're talking about a 98 per cent reduction in the stakes, but we have lots of adults who want to stake £20 or £30 and that is an appropriate level in a highly regulated environment like a betting shop."

Her colleague Ron Hearn, the reigning Betting Shop Manager of the Year, added: "I've been a racing fan all my life. Betting and racing go hand-in-hand. It's not just betting shops at risk, it’s racing too."

Robertson said: "It was good to have such a turnout at Westminster. However, it was also sad, because those there, and many who couldn't be, know their jobs will be at risk if the government cuts FOBT stakes to a maximum of £2."

Newspaper reports this week have claimed a £2 maximum stake is looking likely, claiming chancellor Philip Hammond has dropped objections to the plan.

[oohrogerpalmer] 25/4/2018 18:50

Think history has shown that even if they did reduce the limit to £2 people will still gamble the same amounts but elsewhere.
I reckon they will initially go for something like £25 with a review in a couple of years.

[woodhawk] 25/4/2018 17:51

Yes, but I think it's the possible additional tax burden that is the issue, TEB. The Racing Post article suggests two options - clearly the second would affect GVC particularly adversely.

"a £2 stake could result in tax take being reduced by £194m. Assuming no mitigation from activity transferring to other forms of gambling or other areas of consumer spend, an increase in point of consumption tax to 19 per cent would offset that loss.

Were the government to leave sports betting taxes unchanged and only increase online gaming taxes, an increase to 22 per cent would mitigate the lost machine taxes."

[trentendboy] 25/4/2018 17:46

Fall over doneGVC very diversified LADs deal is structured

[noujay] 25/4/2018 17:19

GVC will do fine and this year will no doubt be a cracker but it does feel like the upside won't necessarily be as immediate as some, myself included, were thinking it would be.Stand to be corrected and entry into the 100 alone out to provide some impetus. I also doubt £2 is the number but there's certainly a lot of noise about it and the potential for extra poc tax

[woodhawk] 25/4/2018 17:12

It is indeed my fervent wish that we all prosper, each in our own way, mylands. Onwards and upwards!!

[mylands] 25/4/2018 16:58

Woodhawk

You keep refering to sub 900p as though it was a point from where the share price would continue to fall. Each time you have posted 'sub 900 again' the share price has risen above 900p and only two days ago was within a whisker of its all-time high.

No, I don't concern myself with these dips, it's the trend that matters and, as all bar one analyst has a target price significantly higher than 900p, I am not alone in believing GVC will continue to prosper and reward all those who have faith in the ever-expanding business under our CEO.

[woodhawk] 25/4/2018 13:48

Oh, mylands, I forgot my now traditional "sub 900p again, how many times do I have to be right?" jibe - but as I'm a holder again, I'll let it pass.

[loganair] 25/4/2018 13:35

Normally it is Buy on the Rumour, Sell on the news however this time round it seems to me sell on the fear, then buy when the actual news of the FBOT's comes out.

[oohrogerpalmer] 25/4/2018 13:29

Gvc took on Lads fully aware of the fobt consequences, whilst if will have a short term effect on the company long term I'm sure they know what there doing.
One thing , whatever level the fobt is set at i understood it would reflect the price that they paid for Lads, so how does that work if Lads have been paid??

[mylands] 25/4/2018 13:12

Approaching half a billion wiped off the market cap in just over 24 hours. Who would have predicted that happening?

If the Times report turns out to be false, will the Times refund the losses made by investors since yesterday's publication? I for one woould back crowd funding to support legal action being taken against the journalist(s).

[oniabsta] 25/4/2018 12:12

If on the announcement it is £2 the share price will dip again & I will be ready
to pick up a few more

[woodhawk] 25/4/2018 12:12

With the number of shops that will undoubtedly close if there is a £2 limit, they'll be putting a lot of jobs at risk (further decreasing the tax take).

[nurdin] 25/4/2018 12:04

Its all speculation,until the Government declares its hand.Nick Bartram,the companys IR man is of similiar view,not that I expected him to say anything different..

[mylands] 25/4/2018 12:02

A reason for this fall must be that old LCL holders who have taken up the new GVC shares have been thinking that they would be getting more by way of an additional payment depending on the review. With some thinking they will now be receiving nowt, they are dumping the shares.

Let's hope my bet on £10 is correct.

[frankiethecabbie] 25/4/2018 11:58

Exactly Joeywald , I am convinced the market makers and The Times are in conclusion.

[joeywald] 25/4/2018 11:45

Isn't this the second time The Times has "reported" a £2 limit? The share price took a dive a couple of months back for the same, unsubstantiated report.

[srpactive] 25/4/2018 11:20

F

Agree, the government would be better off moving it to
£20 and saying the extra revenue above what they would have
raised from £2, goes on the police or nhs. This also
keeps the tax take higher I would have thought.

[finkie] 25/4/2018 11:04

The £2 max is total rubbish, you can put more in an arcade further down the high street, it will be either £10 or £20, £2 is daft laddies and others will need buckets of change all day lol! I think that will put GVC back to circa 950p

[brownie69] 25/4/2018 10:08

Im still not reading the recent press revelations as definite on £2. Treasury will have the final say and if an alternative tax plan has niot been agreed Treasury will want to see any post revenue replaced. That could be an increase in so called consumption tax, the tax on gross profits. Currently its at 15% so 17.5% might do the trick. No respite for GVc though. Another alternative is to allow higher value FOBT machines into casinos and tax the casino operators. Who knows?

I do however think that GVc stock is now over sold and I've just fired of a small order to buy.

[mylands] 25/4/2018 09:13

oniabsta

OK, but what you also need to consider is that the unregulated portion of the combined business is now, according to Edison, down to 10%. It was the high level of unregulated business that always resulted in the GVC's rating being at a significant discount to the sector. The likes of Turkey, which was a large unregulated market for GVC could have been shut down at anytime. With those markets no longer a threat, the company's valuation should over time reflect the sector and provide a material boost to the share price

[oniabsta] 25/4/2018 08:57

Thanks Mylands...more than I thought!

[mylands] 25/4/2018 08:40

I'm still sticking with £10, whatever the financial journalists are 'reporting'.

[woodhawk] 25/4/2018 08:34

The Chancellor says that the overall effect would the neutral, so therefore the shortfall will be coming from somewehere (guess who?). I agree it would be draconian, but with this sorry bunch in power, anything could happen. I mean these idiots might even have us leave the EU... oh, hang on...