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Gross margins for some "sin" stocks are among the 20 highest in the U.K. The U.K. government has delivered on its threat to slash the maximum bets on so-called “fixed-odds betting terminals,” the brightly-colored, casino-style games played on a screen in-store. The upper limit will now be 2 pounds ($2.70), down from 100 pounds ($135), every 20 seconds. Politicians have given a very clear and succinct reason for the cap: Problem gamblers are a greater cost to society than to themselves. And, given how easy it is to get hooked, it takes drastic measures to make progress. The response from the gambling industry — though not entirely uniform — has been to protest at the shop closures, job losses and financial pain that will result. William Hill has said 900 of its stores would become unprofitable immediately, as more than two-thirds of its net revenue from gaming machines came from bets above the 2 pound limit. It said annualized adjusted operating profit would fall by an estimated 70 to 100 million pounds, after closures and cuts.
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Proponents of the devices, known as “pre-reveal games,” contend that the machines are legal because the computer games include a “preview” feature that advises players of the outcome of the games. But critics, including the Department of Business and Professional Regulation, say that doesn’t matter because the “random number generator” used to create the games equates to the definition of slot machines, which are games of “chance,” under state law. There’s nothing players can do to affect the outcome of the game, which fits the definition of slots, department attorney Daniel McGinn told a three-judge panel Tuesday. But Bryan DeMaggio, a lawyer representing Gator Coin, argued that the element of “chance” was removed because players are advised whether they will win before playing. The “randomness” of the game is removed when the player knows the outcome, he said.
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