Bookmakers Aim To Avoid Gaming Machine 'Disaster'.

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


At present bettors can wager approximately ₤ 100 a spin on the electronic machines.


Ladbrokes' owner GVC, William Hill, Betfred, Scotbet, and Jenningsbet say a ₤ 2 limitation would have a "disastrous effect on tasks and the economy".


And they have gotten in touch with Mr Hancock "not to compromise wagering stores".


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


The companies, along with the Association of British Bookmakers, are now looking for talks with Mr Hancock.


'Disproportionate action'


The Department for Digital, Culture, Media and Sport (DCMS) is leading an evaluation into the makers, and media reports recently suggested that the Treasury will back a reduction in the optimum stake.


Those reports said Chancellor Philip Hammond wanted to reduce the highest amount people can bet from ₤ 100 a spin to ₤ 2.


"As the presidents of UK retail betting shops we wish 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 minimized from ₤ 100 to the most affordable possible level of ₤ 2," say the gaming executives in their letter.


"We acknowledge that the government is committed to decreasing the optimum stake, nevertheless this ought to be a proportional response and consistent with the evidence.


"For the avoidance of any doubt, our company believe a ₤ 2 optimum stake is a disproportionate action and will be disastrous for retail wagering in the UK, with prevalent repercussions for people's livelihoods and the broader economy."


They state analysis from KPMG estimates that a ₤ 2 stake would lead to 21,000 direct task losses, with half of wagering stores closing, a loss to HM Treasury of ₤ 1.1 bn over the next 3 years, a loss to local authorities of ₤ 45m and to British Racing of ₤ 50m per annum.


Commission review


Last week the Treasury stated it was "fully supportive of DCMS's work to guarantee the UK's betting regime continues to stabilize the needs of susceptible people, who bet responsibly and those who work in this sector".


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


Bookmaker William Hill derives 54% of its retail revenue from gaming makers.


GVC Holdings, has connected its deal to purchase Ladbrokes Coral and its 3,500 wagering shops, to the outcome of the review into FOBTs. If the optimum stake is cut to ₤ 50, GVC pays ₤ 3.9 bn for Ladbrokes Coral. If it is reduced to ₤ 2, GVC will pay ₤ 3.2 bn.


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