This week will be the most critical for several years for Britain’s bookmakers, as the UK government’s triennial review of stakes and prizes in gambling devices is expected to be announced.
There has been considerable speculation that the stakes on fixed odds betting terminals in bookmakers' shops will have their rates slashed from a maximum stake of £100 to as low as £2 to bring them into line with AWPs (Category C machines) in neighbouring pubs.
Equally, there is speculation that the cut may be more modest, as the authorities eye possibly wiping hundreds of millions of pounds from the gambling industry, as FOBTs are an essential element in bookmakers’ profits. Jobs would be hit – the industry employs around 100,000 people – and tax revenues would be drastically reduced. Those elements feel that the maximum bet could be reduced to between £20 and £50.
According to City analysts, reducing the maximum stake to £10 per spin could take 25 per cent off the earnings of Ladbrokes Coral. Both Ladbrokes and William Hill have seen their share prices tumble against the backdrop of antipathy towards FOBTs from interested parties. The William Hill shares have fallen to 246p from 330p in the summer and Ladbrokes’ have fallen to 124p from 162p.
