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 quote to prevent the imposition of a ₤ 2 top stake on fixed-odds betting terminals (FOBTs).
At present gamblers 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 "disastrous influence on tasks and the economy".
And they have actually contacted Mr Hancock "not to sacrifice betting shops".
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 companies, along with the Association of British Bookmakers, are now seeking talks with Mr Hancock.
'Disproportionate action'
The Department for Digital, Culture, Media and Sport (DCMS) is leading a review into the makers, and media reports recently recommended that the Treasury will back a in the optimum stake.
Those reports stated Chancellor Philip Hammond was ready to minimize the highest quantity individuals can wager from ₤ 100 a spin to ₤ 2.
"As the chief executives of UK retail betting stores we would like to express our alarm, that according to media reports, the government has figured out that the maximum stake on wagering shop gaming devices need to be reduced from ₤ 100 to the lowest possible level of ₤ 2," state the betting executives in their letter.
"We acknowledge that the government is committed to reducing the optimum stake, however this should be a proportionate response and constant with the evidence.
"For the avoidance of any doubt, we believe a ₤ 2 optimum stake is an out of proportion reaction and will be catastrophic for retail wagering in the UK, with prevalent repercussions for people's livelihoods and the broader economy."
They say 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 three years, a loss to local authorities of ₤ 45m and to British Racing of ₤ 50m per year.
Commission evaluation
Last week the Treasury said it was "completely supportive of DCMS's work to ensure the UK's gambling routine continues to balance the requirements of susceptible people, consumers who gamble properly and those who operate in this sector".
Last month, the UK's Gambling Commission suggested that the optimum stake for FOBTs must be cut to ₤ 30 or less.
Bookmaker William Hill obtains 54% of its retail revenue from gaming makers.
GVC Holdings, has linked its deal to buy Ladbrokes Coral and its 3,500 betting shops, 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 minimized to ₤ 2, GVC will pay ₤ 3.2 bn.
Revenues generated from FOBTs made up around 6% of Paddy Power Betfair's overall sales of ₤ 1.7 bn last year.