Max bets now at £100
A UK government review of gaming machine stakes, especially those associated with the controversial machines known as fixed-odds betting terminals, will not be released to the public this spring, but has been delayed until October, according to the Racing Post.
“The government is currently undertaking a review of stakes and prizes of gambling machines and their locations, which includes FOBTs,” said a spokesperson for the Department for Culture, Media and Sport. “It is important that gambling regulations strike the right balance between allowing the industry to contribute to the economy and enable people to bet responsibly while ensuring consumers and communities are protected. The review will be published in due course.”
There has been a push by gaming critics and some in the government for a reduction of stakes on FOBTs from the current £100 to just £2. Bookmakers and others in the gaming industry insist the measure would lead to widespread shop closures and job losses, and have a negative impact on the horse and greyhound racing industries.
“On one hand, a delay is a short-term positive, as any potential profit impact to operators is delayed by what looks like at least six months,” said Goodbody Stockbrokers analyst Gavin Kelleher. “It also provides operators with more time to mitigate as much of their machines away from high-staking B2 content, along with positioning as much of their machine player base towards registered play, as this could be a likely recommendation.
“However,” he added, “the potential for a significant maximum stake reduction on B2 gaming machines remains an overhang on retail bookmakers in the UK.”
“Either way, this is likely to continue to act as a brake on industry consolidation—unhelpful in a slowing UK market with tough Euro 2016 comparatives to be lapped in June and July,” said Simon French of Cenkos Securities.
John White, CEO of amusement arcade trade association Bacta, said in spite of the delay, “The need for political action on the issue of FOBTs remains urgent. We’ll be campaigning for all parties to recognize the need for substantial stake reduction on FOBTs.”
