Gaming firm GVC Holdings will avoid a £700 million payout to former investors after the UK government delayed the implementation of max stakes on fixed odds betting terminals (FOBTs).
The government is delaying the implementation until April 2019, wherein FOBT limits will be reduced from £100 to £2, and will likely negatively impact gaming firms, as revenues will shrink. For GVC though, they won't have to pay out money to Contingent Value Rights, which was a condition set out when the company bought Ladbrokes Coral earlier this year.
The company will now have to pay out an £80 million one time payment, instead of the massive £700 million payout. The revelation sent GVC shares up in the immediate aftermath, but have since leveled out.
No comment from GVC was available as of press time.