Saturday, August 20, 2022

Tag: triennial review

UK Gambling Commission recommends ‘£30 or less’ for FOBT stakes

iGaming Times Stakes FOBTs 1000x562
Betting companies may breathe a sigh of relief, but UK ministers could still enforce a £2 maximum stake. The Gambling Commission is to recommend reducing the maximum stake on FOBTs to “£30 or less”, backing away from previous threats of £2, the Times has revealed. The retreat will bring some relief to bookmakers, who warned cutting stakes too low would lower...

UK machine debate reduced to one pro-racing minister

Matthew Hancock uk minister
Reflecting the frail state of UK politics, the fate of bookmakers appears to hang on one man’s love for horse racing - and how many punters he thinks feel the same.   Over half-a-billion pounds were wiped off the valuations of British bookmakers in January, when fresh rumours circulated that the government intends to cut FOBT stakes to £2. The leaks, coming...

UK Gambling Review: is the future of betting at stake?

uk london betting gambling
  As the Triennial Review moves further toward concrete proposals on issues such as B2 staking limits, the UK’s gambling industry is looking forward to some long-awaited clarity. Grant Humphrey, director of EY’s betting and gaming team, believes decisive action from the DCMS could unlock the next wave of M&A activity in the UK’s increasingly consolidated betting sector.   October saw the...

Jersey keeping a close eye on UK gambling reforms

jersey channel_islands
The Jersey Gambling Commission will be “following with interest” developments in the UK after the British government proposed to cut maximum stakes on FOBTs.   This week saw the publication of the long-awaited triennial review on the UK gambling industry, which called for stakes to be cut from £100 to between £50 and £2. David Evans, deputy chief officer of the Jersey...

No clarity on FOBTs from industry review, says Paddy Power Betfair boss

Paddy Power Betfair has criticised the government’s long-awaited industry review on UK gambling for failing to make a decision on fixed-odds betting terminals (FOBT).   The review proposed that maximum stakes on FOBTs be cut from £100 a spin to a figure between £2 and £50. Breon Corcoran, chief executive of Paddy Power Betfair, said the review, released on Tuesday, failed to...

UK election has increased odds of FOBT stake reduction

Credit Suisse have advised that the government will likely slash the maximum stake for gaming machines to £2, causing a 40-50% profit cut for bookmakers.
Analysts at leading financial agency Credit Suisse advised clients earlier this week that odds have "materially increased" that maximum stakes for gaming machines will be slashed from £100 to £2 as part of the government's long-delayed Triennial Review, following the recent upheaval of the UK political climate. This could potentially lead to a 40-50 percent cut in profits for bookmakers, particularly betting giants William...

Investors weigh benefits of black white and grey

BBI - Investors
Just how should we assess the risk, income and multiples of businesses in regulated, unregulated and soon-to-regulate markets? Investors from the industry assembled in London last month to tackle these very issues.   Investors take different views of companies involved in different shades of market; it’s partly an appetite for risk, but also about weighing up a business’ potential income over...

Populism over pragmatism: Shares tumble on stake reduction hype

Betting Business review stakes
The market jitters on the news that British MPs have recommended the harshest reduction in machine betting stakes. While the reaction reveals how exposed certain bookmakers are to the risk, analysts remain sceptical that ministers will ultimately be so self-harming.   Those UK bookmakers most reliant on revenues from fixed-odds betting terminals saw their valuations slashed when a cross party group...

City fears the financial impact of an FOBT clampdown

Betting Business FOBT review
The potential change to legislation governing FOBTs in betting venues as part of the Triennial Review could see huge losses for companies such as Ladbrokes Coral.   A tightening of the regulations governing FOBTs in betting shops, could wipe a quarter off Ladbrokes Coral’s earnings, according to a report in The Daily Telegraph. The revenue from FOBTs accounts for 60% of...

Government announces long-awaited FOBT review

Betting Business Triennial Review B2
The UK’s Department for Culture, Media and Sport (DCMS) has taken the first steps in a wide-ranging review of gambling machine stakes and prizes; a review which is expected to place Fixed-Odds Betting Terminals (FOBTs) under severe scrutiny.   The UK government has launched an investigation into gaming machines and social responsibility measures, with B2 stakes and prizes expected to be...