Paddy Power Betfair Plays Down ₤ 2 Stake Cut Impact
Paddy Power Betfair plays down ₤ 2 stake cut impact
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 maximum bet on fixed-odds betting terminals [FOBTs] to ₤ 2.
The business made the declaration as it reported a 4% increase in very first half revenues to ₤ 106m.
"Our shops are more successful, and outshine on sports betting, allowing them to better stand up to the impact of lower device stakes limitations," the company said.
The stake is being cut from ₤ 100.
FOBTs produce ₤ 1.8 bn in revenue a year for the wagering industry, according to the Gambling Commission, along with taxes of ₤ 400m for the government.
High tramp
"We operate in high-footfall, highly contended places, which suggests we are well placed to take advantage of rival shop closures," Paddy Power Betfair stated.
"In the UK, we do not anticipate the government's proposed brand-new ₤ 2 stake limit for video gaming devices to have a material influence on our retail strategy," it added.
Rival William Hill, which creates simply over half its retail earnings from FOBTs, has alerted 900 of its stores might end up being loss-making, possibly resulting in task losses.
Paddy Power Betfair stated the proposed FOBT cut to ₤ 2 would decrease its profits from gaming machines by in between 33% and 43%.
Based on its 2017 figures, this could suggest profits would fall by as much as ₤ 46m, which it stated amounted to 2.6% of its overall profits.
It likewise gave a gauge of the federal government's strategy to increase remote video gaming duty to balance out some of the lost tax from FOBT. Every one portion point rise - from the existing level of 15% - would lead to an extra ₤ 2.5 m of duty to be paid.
Paddy Power Betfair plays down ₤ 2 stake cut impact
8 August 2018
comments
77 Comments
Gambling company Paddy Power Betfair has stated it can stand up to the federal government's strategy to cut the maximum bet on fixed-odds betting terminals [FOBTs] to ₤ 2.
The business made the declaration as it reported a 4% increase in very first half revenues to ₤ 106m.
"Our shops are more successful, and outshine on sports betting, allowing them to better stand up to the impact of lower device stakes limitations," the company said.
The stake is being cut from ₤ 100.
FOBTs produce ₤ 1.8 bn in revenue a year for the wagering industry, according to the Gambling Commission, along with taxes of ₤ 400m for the government.
High tramp
"We operate in high-footfall, highly contended places, which suggests we are well placed to take advantage of rival shop closures," Paddy Power Betfair stated.
"In the UK, we do not anticipate the government's proposed brand-new ₤ 2 stake limit for video gaming devices to have a material influence on our retail strategy," it added.
Rival William Hill, which creates simply over half its retail earnings from FOBTs, has alerted 900 of its stores might end up being loss-making, possibly resulting in task losses.
Paddy Power Betfair stated the proposed FOBT cut to ₤ 2 would decrease its profits from gaming machines by in between 33% and 43%.
Based on its 2017 figures, this could suggest profits would fall by as much as ₤ 46m, which it stated amounted to 2.6% of its overall profits.
It likewise gave a gauge of the federal government's strategy to increase remote video gaming duty to balance out some of the lost tax from FOBT. Every one portion point rise - from the existing level of 15% - would lead to an extra ₤ 2.5 m of duty to be paid.