8th May 2015 09:52
LONDON (Alliance News) - Shares in British bookmakers Ladbrokes and William Hill have soared as the UK General Election results suggest that the Conservatives will return to power alone and regulatory risks posed by Labour proposals have been avoided.
Ladbrokes shares are up 10.1% at 116.30 pence, making it the best-performing stock in the FTSE 250, while William Hill's shares are up 4.5% at 392.7p, a welcome uplift as both bookmakers' shares slumped at the end of their first quarters in April.
There was concern among bookmakers of the potential regulatory risk posed by a prospective Labour government, as its manifesto included an intention to give local authorities in the UK the power to reduce the number of, or ban entirely, fixed-odds gaming machines from betting shops.
Analysts at Jeffries said in April that Labour's policy posed a serious risk to the earnings of bookmakers, even more so than the reduction in the maximum stake on B2 machines endorsed by the Liberal Democrats and UKIP, while Numis said it expected William Hill's shares to continue struggling until the political risk associated with the General Election was clarified.
?Ladbrokes is certainly ?cashing in? as the prospect recedes for levy on fixed odds betting machines in the wake of the election result. Ladbrokes is one of the most shorted stocks in the UK and certainly one to watch this morning following the Conservative results,? London Capital analyst Will Hedden said.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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