UK gambling crackdown hits gaming groups

Shares in gaming groups took a tumble in the UK today after the British government announced tougher controls on gambling.

Details of a shake-up in gambling laws surprised investors, leading stocks such as Stanley Leisure and Rank to lose around 5% of their market value.

Under the plans announced today, Las Vegas-style slot machines offering unlimited prize money will now only be allowed in the biggest casinos, with numbers limited to 1,250 in each casino.

Small casinos will not be allowed to run bingo games, and all casinos will have to have “chill-out” non-gambling rooms.

The announcement shocked investors, who had not expected the proposals to be so tough.

Stanley Leisure, which runs 41 casinos, saw its shares fall more than 5% on the back of the announcement.

Although bookmaker William Hill was the heaviest faller in the FTSE 100 Index, the stock had already taken a hit in the past few days.

Leisure companies had hoped the deregulation would work in their favour, sending shares higher in recent months.