Gambling group shares dip on FOBT fears

Gambling company shares took a beating Tuesday morning following media reports that the UK government, and specifically the Chancellor Phillip Hammond, is prepared to accept a drastic cut to GBP 2 on Fixed Odds Betting Terminal maximum stakes.

Over the weekend media reports indicated that the government would delay the FOBT decision until after next week’s local elections (see previous report) but on Monday several news outlets claiming informed sources in the Department for Digital, Culture, Media and Sport reported that Hammond was prepared to agree to the cut in stakes despite the impact it will have on government tax revenue.

The reports said that Hammond may make up the deficit by increasing tax levels on other forms of gambling.

The government is constrained by election rules from making an official announcement on the issue until after the local elections, The Times observed.

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