Paddy Power Betfair Plays Down ₤ 2 Stake Cut Impact
Paddy Power Betfair soft-pedals ₤ 2 stake cut impact
8 August 2018
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Gambling company Paddy Power Betfair has stated it can stand up to the government's strategy to cut the optimum bet on fixed-odds wagering terminals [FOBTs] to ₤ 2.
The company made the declaration as it reported a 4% increase in very first half profits to ₤ 106m.
"Our shops are more successful, and surpass on sports betting, enabling them to much better withstand the effect of lower maker stakes limits," the company stated.
The stake is being cut from ₤ 100.
FOBTs generate ₤ 1.8 bn in income a year for the betting market, according to the Gambling Commission, as well as taxes of ₤ 400m for the federal government.
High tramp
"We operate in high-footfall, extremely contended areas, which suggests we are well placed to gain from rival store closures," Paddy Power Betfair stated.
"In the UK, we do not expect the government's proposed brand-new ₤ 2 stake limitation for video gaming makers to have a material influence on our retail technique," it included.
Rival William Hill, which generates just over half its retail earnings from FOBTs, has cautioned 900 of its shops could end up being loss-making, possibly causing job losses.
Paddy Power Betfair said the proposed FOBT cut to ₤ 2 would lower its income from video gaming machines by in between 33% and 43%.
Based upon its 2017 figures, this could suggest earnings would fall by as much as ₤ 46m, which it said totaled up to 2.6% of its total revenue.
It also provided a gauge of the federal government's strategy to increase remote video gaming duty to balance out a few of the lost tax from FOBT. Each one percentage point increase - from the current level of 15% - would result in an additional ₤ 2.5 m of task to be paid.
Paddy Power Betfair soft-pedals ₤ 2 stake cut impact
8 August 2018
remarks
77 Comments
Gambling company Paddy Power Betfair has stated it can stand up to the government's strategy to cut the optimum bet on fixed-odds wagering terminals [FOBTs] to ₤ 2.
The company made the declaration as it reported a 4% increase in very first half profits to ₤ 106m.
"Our shops are more successful, and surpass on sports betting, enabling them to much better withstand the effect of lower maker stakes limits," the company stated.
The stake is being cut from ₤ 100.
FOBTs generate ₤ 1.8 bn in income a year for the betting market, according to the Gambling Commission, as well as taxes of ₤ 400m for the federal government.
High tramp
"We operate in high-footfall, extremely contended areas, which suggests we are well placed to gain from rival store closures," Paddy Power Betfair stated.
"In the UK, we do not expect the government's proposed brand-new ₤ 2 stake limitation for video gaming makers to have a material influence on our retail technique," it included.
Rival William Hill, which generates just over half its retail earnings from FOBTs, has cautioned 900 of its shops could end up being loss-making, possibly causing job losses.
Paddy Power Betfair said the proposed FOBT cut to ₤ 2 would lower its income from video gaming machines by in between 33% and 43%.
Based upon its 2017 figures, this could suggest earnings would fall by as much as ₤ 46m, which it said totaled up to 2.6% of its total revenue.
It also provided a gauge of the federal government's strategy to increase remote video gaming duty to balance out a few of the lost tax from FOBT. Each one percentage point increase - from the current level of 15% - would result in an additional ₤ 2.5 m of task to be paid.