Paddy Power Betfair Plays Down ₤ 2 Stake Cut Impact
Paddy Power Betfair soft-pedals ₤ 2 stake cut effect
8 August 2018
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Gambling company Paddy Power Betfair has stated it can stand up to the federal government's strategy to cut the optimum bet on fixed-odds wagering terminals [FOBTs] to ₤ 2.
The business made the declaration as it reported a 4% increase in first half revenues to ₤ 106m.
"Our shops are more profitable, and exceed on sports wagering, enabling them to much better endure the effect of lower maker stakes limitations," the business said.
The stake is being cut from ₤ 100.
FOBTs create ₤ 1.8 bn in revenue a year for the wagering market, according to the Gambling Commission, as well as taxes of ₤ 400m for the federal government.
High footfall
"We run in high-footfall, extremely competed areas, which indicates we are well put to benefit from rival shop closures," Paddy Power Betfair said.
"In the UK, we do not expect the federal government's proposed brand-new ₤ 2 stake limit for video gaming devices to have a material influence on our retail method," it added.
Rival William Hill, which generates just over half its retail incomes from FOBTs, has actually cautioned 900 of its shops could end up being loss-making, potentially leading to task losses.
Paddy Power Betfair stated the proposed FOBT cut to ₤ 2 would minimize its income from gaming devices by between 33% and 43%.
Based on its 2017 figures, this might recommend revenue would fall by up to ₤ 46m, which it stated amounted to 2.6% of its overall profits.
It likewise offered a gauge of the federal government's plan to increase remote video gaming duty to balance out a few of the lost tax from FOBT. Every one portion point increase - from the present level of 15% - would lead to an additional ₤ 2.5 m of task to be paid.
Paddy Power Betfair soft-pedals ₤ 2 stake cut effect
8 August 2018
remarks
77 Comments
Gambling company Paddy Power Betfair has stated it can stand up to the federal government's strategy to cut the optimum bet on fixed-odds wagering terminals [FOBTs] to ₤ 2.
The business made the declaration as it reported a 4% increase in first half revenues to ₤ 106m.
"Our shops are more profitable, and exceed on sports wagering, enabling them to much better endure the effect of lower maker stakes limitations," the business said.
The stake is being cut from ₤ 100.
FOBTs create ₤ 1.8 bn in revenue a year for the wagering market, according to the Gambling Commission, as well as taxes of ₤ 400m for the federal government.
High footfall
"We run in high-footfall, extremely competed areas, which indicates we are well put to benefit from rival shop closures," Paddy Power Betfair said.
"In the UK, we do not expect the federal government's proposed brand-new ₤ 2 stake limit for video gaming devices to have a material influence on our retail method," it added.
Rival William Hill, which generates just over half its retail incomes from FOBTs, has actually cautioned 900 of its shops could end up being loss-making, potentially leading to task losses.
Paddy Power Betfair stated the proposed FOBT cut to ₤ 2 would minimize its income from gaming devices by between 33% and 43%.
Based on its 2017 figures, this might recommend revenue would fall by up to ₤ 46m, which it stated amounted to 2.6% of its overall profits.
It likewise offered a gauge of the federal government's plan to increase remote video gaming duty to balance out a few of the lost tax from FOBT. Every one portion point increase - from the present level of 15% - would lead to an additional ₤ 2.5 m of task to be paid.