Gambling groups appeal to UK government on FOBT issue
News on 29 Apr 2018
News on 29 Apr 2018
The BBC reports that several British gambling firms have penned a letter to the UK government Culture Secretary Matt Hancock, appealing for more consideration before any radical cuts to Fixed Odds Betting Terminal maximum stakes are brought into force.
The groups reportedly include Ladbrokes’ owner GVC, William Hill, Betfred, Scotbet, and Jenningsbet, who claim in their communication that the imposition of a GBP 2 limit would have a “catastrophic impact on jobs and the economy” and produce a study by independent professional business services provider KPMG to substantiate their appeal.
Together with the Association of British Bookmakers, the bookmakers are now seeking a meeting with Hancock, who is believed to favour the cut to GBP 2, and who is set to publish the final decision following a DCMS review (see previous reports).
In their letter, the companies caution: “A maximum stake of GBP 2 on FOBTs is a de facto ban on the machines as the games are not feasible at that level.”
Their appeal follows recent media reports quoting sources who have said that previous opposition to too radical a cut by the Chancellor has been overcome, and the DCMS is about to impose the GBP 2 maximum stake.
“As the chief executives of UK retail betting shops we would like to express our alarm, that according to media reports, the government has determined that the maximum stake on betting shop gaming machines should be reduced from GBP 100 to the lowest possible level of GBP 2,” say the gambling executives in their letter.
“We acknowledge that the government is committed to reducing the maximum stake, however this should be a proportionate response and consistent with the evidence.
“For the avoidance of any doubt, we believe a GBP 2 maximum stake is a disproportionate response and will be catastrophic for retail betting in the UK, with widespread consequences for people’s livelihoods and the wider economy.”
The KPMG analysis estimates that a GBP 2 stake would result in 21,000 direct job losses, with half of betting shops closing, a loss to HM Treasury of GBP 1.1 billion over the next three years, a loss to local authorities of GBP 45 million and to British Racing of GBP 50 million per annum.
William Hill reportedly derives 54 percent of its retail revenue from gaming machines, whilst Paddy Power Betfair’s exposure would be around 6 percent.
