EDV tumbled -9.9% yesterday following a significant hit to earnings as Victoria introduced major restrictions on gambling including preset limits in an admirable step to help problem gamblers. The clear problem for EDV is they are one of the largest operators of poker machines within their pubs and hotels division. This is a painful move by the State Government in the middle of a licensing deal which has made it tough to forecast future earnings for EDV but the trend is clearly not good.
- We fully support Victoria’s move to protect problem gamblers but as a country, we want to avoid being regarded as a higher-risk place to invest due to government intervention
MM is neutral EDV around $5.60
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