Bookmakers Aim To Avoid Gaming Machine 'Disaster'.

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


At present gamblers can wager up to ₤ 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 contacted Mr Hancock "not to compromise wagering stores".


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


The firms, in addition to the Association of British Bookmakers, are now looking for talks with Mr Hancock.


'Disproportionate response'


The Department for Digital, Culture, Media and Sport (DCMS) is leading a review into the devices, and media reports recently suggested that the Treasury will back a decrease in the maximum stake.


Those reports stated Chancellor Philip Hammond wanted to reduce the greatest quantity individuals can bet from ₤ 100 a spin to ₤ 2.


"As the presidents of UK retail betting stores we want to reveal our alarm, that according to media reports, the federal government has actually identified that the maximum stake on wagering shop gaming makers need to be minimized from ₤ 100 to the most affordable possible level of ₤ 2," state the gambling executives in their letter.


"We acknowledge that the federal government is committed to decreasing the optimum stake, however this ought to be a proportional reaction and consistent with the proof.


"For the avoidance of any doubt, our company believe a ₤ 2 optimum stake is an out of proportion response and will be disastrous for retail betting in the UK, with extensive consequences for individuals's incomes and the wider economy."


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


Commission review


Last week the Treasury stated it was "fully helpful of DCMS's work to the UK's gaming program continues to stabilize the needs of vulnerable individuals, customers who gamble properly and those who operate in this sector".


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


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


GVC Holdings, has linked its offer to purchase Ladbrokes Coral and its 3,500 betting shops, to the result of the evaluation into FOBTs. If the optimum 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 overall sales of ₤ 1.7 bn last year.