Bookmakers Aim To Avoid Gaming Machine 'Disaster'.
29 April 2018
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Bosses of leading UK betting companies have actually sent out a letter to Culture Secretary Matt Hancock in a bid to avoid the imposition of a ₤ 2 top stake on fixed-odds betting terminals (FOBTs).
At present gamblers can bet as much as ₤ 100 a spin on the .
Ladbrokes' owner GVC, William Hill, Betfred, Scotbet, and Jenningsbet say a ₤ 2 limit would have a "devastating influence on jobs and the economy".
And they have actually gotten in touch with Mr Hancock "not to sacrifice wagering shops".
They alerted: "A maximum stake of ₤ 2 on FOBTs is a de facto restriction on the makers as the video games are not feasible at that level."
The firms, along with the Association of British Bookmakers, are now looking for talks with Mr Hancock.
'Disproportionate reaction'
The Department for Digital, Culture, Media and Sport (DCMS) is leading a review into the machines, and media reports last week recommended that the Treasury will back a decrease in the optimum stake.
Those reports stated Chancellor Philip Hammond wanted to lower the greatest amount people can wager from ₤ 100 a spin to ₤ 2.
"As the presidents of UK retail betting stores we would like to express our alarm, that according to media reports, the federal government has actually figured out that the optimum stake on betting shop video gaming devices ought to be reduced from ₤ 100 to the lowest possible level of ₤ 2," say the gaming executives in their letter.
"We acknowledge that the government is dedicated to decreasing the optimum stake, nevertheless this must be a proportional action and consistent with the proof.
"For the avoidance of any doubt, we think a ₤ 2 maximum stake is an out of proportion response and will be disastrous for retail wagering in the UK, with extensive consequences for individuals's incomes and the wider economy."
They state analysis from KPMG estimates 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 "totally supportive of DCMS's work to ensure the UK's gambling regime continues to stabilize the needs of vulnerable people, customers who gamble responsibly and those who work 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 earnings from video gaming makers.
GVC Holdings, has actually connected its deal to purchase Ladbrokes Coral and its 3,500 betting stores, to the outcome of the review into FOBTs. If the maximum 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 generated from FOBTs made up around 6% of Paddy Power Betfair's total sales of ₤ 1.7 bn in 2015.