BUZZ-UK bookmakers: Hung parliament may extend regulatory overhang

** UK gambling companies William Hill (Frankfurt: 633847 - news) , Ladbrokes (Amsterdam: LB6.AS - news) down 2 pct as hung parliament could cause regulatory uncertainty to linger over sector, analysts write

** Gambling companies have been bracing for regulatory hit with a government crackdown on gambling machines

** Government review of FOBTs -- called in December, with result delayed due to elections -- could lead to cut in maximum stake, currently 100 pounds every 20 seconds

** FOBT machines have been lucrative for high street betting shops, helping them survive despite growth of online gambling

** Analyst believe outcome could be further delayed as matter is unlikely to be top priority for govt

** William Hill (-1.4 pct), Ladbrokes Coral (LSE: LAD.L - news) (-1.3pct) derive about 60 pct of EBIT from UK retail

** "(One) possibility is the need for compromise within a hung parliament could lead to harsher decisions about gaming machines, closer to the Labour Party's proposals," Berenberg analyst wrote

** Labour proposed to reduce maximum stake on FOBT from 100 pounds to 2 pounds

** William Hill told Reuters "We are monitoring developments following election result. As and when DCMS team re-engage with Triennial process, we will continue to work with both Department and Ministers as appropriate"