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GVC shares surge as gambling company dodges big payout

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GVC shares surge as gambling company dodges big payout

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LONDON (Reuters) - GVC Holdings <GVC.L> shares surged 8 percent and were on track for their best day in 2-1/2 years after a government ruling on the UK gambling sector spared the company a major cash outlay to former Ladbrokes shareholders.

GVC would have been liable for a payment of about £670 million ($870 million) to former Ladbrokes shareholders if legislation aimed at tackling problem gambling had been introduced before March next year, analysts said.

But on Wednesday, the government said it brought forward the introduction of caps on fixed-odd betting terminals (FOBT) to April next year, bowing to pressure from lawmakers.

At 1537 GMT, GVC shares were up 7.9 percent.

(Reporting by Helen Reid and Josephine Mason; Editing by Elaine Hardcastle)

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