UK's GVC shares surge as gambling company dodges big payout

(Corrects second paragraph on CVR requirement)

LONDON, Nov 14 (Reuters) - GVC Holdings (Frankfurt: 6GI.F - news) shares surged 8 percent and were on track for their best day in 2-1/2 years after a government ruling on the UK gambling sector spared the company a major cash outlay to former Ladbrokes (Amsterdam: LB6.AS - news) shareholders.

GVC would have been liable for a payment of about £670 million ($870 million) to former Ladbrokes shareholders if legislation aimed at tackling problem gambling had not been enacted by March 28 next year, analysts said.

But on Wednesday, the government said it brought forward the introduction of caps on fixed-odd betting terminals (FOBT) to April next year from October 2019, bowing to pressure from lawmakers.

Enactment of the statutory instrument is expected next week, an analyst said.

At 1537 GMT, GVC shares were up 7.9 percent. ($1 = 0.7702 pounds) (Reporting by Helen Reid and Josephine Mason; Editing by Elaine Hardcastle)