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 firm Paddy Power Betfair has stated it can endure the government's plan to cut the maximum bet on fixed-odds wagering terminals [FOBTs] to ₤ 2.
The business made the declaration as it reported a 4% increase in very first half earnings to ₤ 106m.
"Our stores are more rewarding, and outperform on sports wagering, enabling them to much better stand up to the impact of lower device stakes limitations," the company said.
The stake is being cut from ₤ 100.
FOBTs generate ₤ 1.8 bn in profits a year for the wagering market, according to the Gambling Commission, as well as taxes of ₤ 400m for the federal government.
High step
"We operate in high-footfall, extremely completed locations, which indicates we are well positioned to benefit from rival shop closures," Paddy Power Betfair stated.
"In the UK, we do not expect the federal government's proposed brand-new ₤ 2 stake limit for video gaming machines to have a product influence on our retail technique," it included.
Rival William Hill, which creates simply over half its retail profits from FOBTs, has cautioned 900 of its stores might end up being loss-making, possibly resulting in job losses.
Paddy Power Betfair said the proposed FOBT cut to ₤ 2 would lower its revenue from video gaming machines by between 33% and 43%.
Based upon its 2017 figures, this might recommend earnings would fall by up to ₤ 46m, which it said totaled up to 2.6% of its total income.
It likewise provided a gauge of the government's plan to increase remote video gaming responsibility to balance out some of the lost tax from FOBT. Each one percentage point rise - from the existing level of 15% - would result in an additional ₤ 2.5 m of responsibility to be paid.
Paddy Power Betfair soft-pedals ₤ 2 stake cut effect
8 August 2018
remarks
77 Comments
Gambling firm Paddy Power Betfair has stated it can endure the government's plan to cut the maximum bet on fixed-odds wagering terminals [FOBTs] to ₤ 2.
The business made the declaration as it reported a 4% increase in very first half earnings to ₤ 106m.
"Our stores are more rewarding, and outperform on sports wagering, enabling them to much better stand up to the impact of lower device stakes limitations," the company said.
The stake is being cut from ₤ 100.
FOBTs generate ₤ 1.8 bn in profits a year for the wagering market, according to the Gambling Commission, as well as taxes of ₤ 400m for the federal government.
High step
"We operate in high-footfall, extremely completed locations, which indicates we are well positioned to benefit from rival shop closures," Paddy Power Betfair stated.
"In the UK, we do not expect the federal government's proposed brand-new ₤ 2 stake limit for video gaming machines to have a product influence on our retail technique," it included.
Rival William Hill, which creates simply over half its retail profits from FOBTs, has cautioned 900 of its stores might end up being loss-making, possibly resulting in job losses.
Paddy Power Betfair said the proposed FOBT cut to ₤ 2 would lower its revenue from video gaming machines by between 33% and 43%.
Based upon its 2017 figures, this might recommend earnings would fall by up to ₤ 46m, which it said totaled up to 2.6% of its total income.
It likewise provided a gauge of the government's plan to increase remote video gaming responsibility to balance out some of the lost tax from FOBT. Each one percentage point rise - from the existing level of 15% - would result in an additional ₤ 2.5 m of responsibility to be paid.