ECM Libra Investment Research will upgrade by 10 per cent Berjaya Sports Toto's earnings estimates and target price if the prize payout reduction is introduced.

The research firm said Berjaya Sports Toto and Magnum have lobbied with the Finance Ministry to reduce the 4D non-first prize to exactly offset the two-point hike in pool betting duty introduced in June.

Reducing the 4D first prize would allow illegal operators to wrest market share with higher prizes, it said in its research note today.

'Therefore, we expect minimal negative impact on 4D sales from the prize payout reduction for 4D non-first prizes.

'Investors who believe the prize payout reduction will be forthcoming may want to buy Berjaya Sports Toto now to position themselves for the actual event,' it added. -- Bernama