Bookmakers Aim To Avoid Gaming Machine 'Disaster'.

29 April 2018
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Bosses of leading UK betting companies have actually sent a letter to Culture Secretary Matt Hancock in a quote to prevent the imposition of a ₤ 2 top stake on fixed-odds betting terminals (FOBTs).


At present bettors can bet up to ₤ 100 a spin on the electronic makers.


Ladbrokes' owner GVC, William Hill, Betfred, Scotbet, and Jenningsbet state a ₤ 2 limitation would have a "catastrophic impact on tasks and the economy".


And they have contacted Mr Hancock "not to sacrifice betting shops".


They alerted: "A maximum stake of ₤ 2 on FOBTs is a de facto ban on the makers as the video games are not feasible at that level."


The companies, in addition to the Association of British Bookmakers, are now seeking talks with Mr Hancock.


'Disproportionate response'


The for Digital, Culture, Media and Sport (DCMS) is leading an evaluation into the makers, and media reports last week suggested that the Treasury will back a decrease in the maximum stake.


Those reports stated Chancellor Philip Hammond wanted to minimize the highest amount individuals can wager from ₤ 100 a spin to ₤ 2.


"As the presidents of UK retail wagering stores we want to reveal our alarm, that according to media reports, the government has figured out that the maximum stake on betting shop video gaming devices need to be reduced from ₤ 100 to the most affordable possible level of ₤ 2," say the betting executives in their letter.


"We acknowledge that the federal government is dedicated to decreasing the maximum stake, however this ought to be an in proportion action and constant with the evidence.


"For the avoidance of any doubt, we believe a ₤ 2 maximum stake is a disproportionate reaction and will be devastating for retail wagering in the UK, with prevalent effects for people's incomes and the wider economy."


They say analysis from KPMG approximates that a ₤ 2 stake would result in 21,000 direct job losses, with half of wagering shops closing, a loss to HM Treasury of ₤ 1.1 bn over the next 3 years, a loss to regional authorities of ₤ 45m and to British Racing of ₤ 50m per year.


Commission evaluation


Recently the Treasury stated it was "completely helpful of DCMS's work to guarantee the UK's gaming routine continues to balance the requirements of susceptible people, customers who bet properly and those who work in this sector".


Last month, the UK's Gambling Commission advised that the optimum stake for FOBTs must be cut to ₤ 30 or less.


Bookmaker William Hill derives 54% of its retail earnings from gaming devices.


GVC Holdings, has linked its offer to buy Ladbrokes Coral and its 3,500 wagering stores, to the outcome of the evaluation into FOBTs. If the maximum stake is cut to ₤ 50, GVC pays ₤ 3.9 bn for Ladbrokes Coral. If it is lowered to ₤ 2, GVC will pay ₤ 3.2 bn.


Revenues created from FOBTs comprised around 6% of Paddy Power Betfair's total sales of ₤ 1.7 bn last year.