UK Bookmakers saw shares fall yesterday as Philip Hammond agreed the maximum stake on Fixed-Odds Betting Terminals (FOBTS) would be £2.It was reported that shares for Ladbrokes Coral slumped by 6%, Paddy Power by 5% and William Hill by 12.7%. As it stands, gamblers are able to bet up to £100 per spin, this is looking likely to be reduced to between £2-£50.
Tax Revenues
Initially, the Chancellor believed that slashing it to £2 would dramatically affect the tax revenues the government receive, he has since been persuaded by 22 Tory MP’s that this is the best course of action including Matt Hancock, Culture Secretary. In a recent survey conducted by YouGov, it concluded, out of 100 MP’s, 62% were in favour of the £2 Stake.
Highly Addictive
FOBTS are one of the biggest revenue earners for bookmakers, but they have recently come under intense scrutiny as these games have the potential to become highly addictive. These concerns are not only from the government, the public have shown concern, cross-party MP’s, faith groups and stake holders.Although a final decision is yet to be made, Mr Hammond pointed out that recent research by bacta concluded the gambling industry is growing rapidly, especially over the last five years, with online gaming being far more popular compared with FOBTS.