Government to shy away from recommending specific FOBT stake
DCMS to suggest another three-month consultation period according to Times report
The government will not recommend a specific maximum stake for FOBTs when it unveils the findings of its triennial review this week, The Times has reported.
The newspaper said the DCMS will instead run a 12-week consultation to allow bookmakers and opponents to argue the case for a cut to £50, £20 or £2.
The absence of a firm recommendation shocked many in the industry, with the review having been announced more than a year ago.
https://twitter.com/Poker_Hack/status/924580888637263872
The department’s final decision on maximum stake after the consultation period will still have to be approved by the Commons, leading Berenberg to suggests no actual changes will be implemented before January 2019.
FOBTs generate annual revenues of £1.8bn for UK bookmakers, according to Edison.
A £10 maximum stake would cost PPB around £32m in machine revenues in 2018 according to Barclays, compared to £276m at Ladbrokes Coral and £182m at William Hill.
The delay will also postpone further industry consolidation, with the conclusion of the triennial review expected to act as the “starter’s” gun for another round of M&A.
GVC is reported to have a provisional deal to take over Ladbrokes in place, while William Hill is rumoured as a target for The Stars Group among other suitors.