Bookies brace for FOBT review

British bookies are braced for the release of the UK government’s Fixed Odds Betting Terminal review this week, following widespread speculative coverage in the English mainstream press.

Virtually every big newspaper has carried the story, claiming that DCMS minister Tracey Crouch will release the review Tuesday, and speculating on what they think it will contain.

The consensus appears to be that there will be cuts to the current GBP 100 maximum betting level, and that the number of machines allowed in each retail betting shop will be reduced.

The government will open a 12 week consultation window following the publication of the review, most report.

Speculative reportage on how drastic the deposit cut will be range from as little as GBP 2 though to GBP 20 and GBP 50, but in truth none of the publications involved really know what the government has decided.

The cuts and machine number reductions could have a considerable impact on tax revenues, because bookmakers enjoy almost 56 percent of their profits from the machines, and this figure would clearly be adversely affected by the rumoured cuts.

The more dire warnings on the consequences have included falling share prices, the probability of shop closures, job losses, a reduction in the annual GBP 700 in taxes due to government, lower subsidies for racing, and reductions in adspend.

Some observers claim that the publication of the review could also trigger a new wave of corporate consolidations, pointing to recent reports of negotiations between GVC Holdings and Ladbrokes Coral, and between William Hill and The Stars Group.

The report is also expected to include responsible gambling provisions with wide implications.