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30 % of machines revenue actually comes from B3 content (which is a higher margin product - 12 to 8 % ) versus 2.7% on roulette . Some of the roulette players will probably move to slots or other quick bet products - dogs / virtual / numbers . Lots of shop closures but the ones left will get more OTC sports / racing footfall . By no means finished .
Online gambling: the hidden epidemic - https://www.ft.com/content/7044b142-7313-11e8-aa31-31da4279a601 via @FT
Milenials account for a big increase in online gaming....Not selling WMH just yet.
The £2 limit backed by 93 local authorities, the Royal Society for Public Health and the Church of England’s General Synod is expected to help protect vulnerable people from major losses, but industry experts consider the amount too low, making the machines practically unplayable. Earlier this month, executives from different leading UK betting firms have sent a letter to Culture Secretary Matt Hancock in an attempt to prevent the £2 stake limit on FOBTs. William Hill, Betfred, Scotbet, GVC and Jenningsbet said that a £2 limit would have a “catastrophic impact on jobs and the economy,” and they called on the Culture Secretary to not sacrifice betting shops. “A maximum stake of £2 on FOBTs is a de facto ban on the machines as the games are not feasible at that level,” they said. The executives said in the letter that a KPMG analysis estimates that a £2 stake would result in 21,000 direct job losses and that half the betting shops would close. That would also result in an HM Treasury loss of £1.1 billion over the next three years, a £45 million loss to local authorities and £50 million to the British Racing every year.
The betting shops only survive because of the fobts and roulette . Reducing the stake to £2 will in effect make the roulette game unplayable because of the nature of the game . At £2 stake you would not be able to spread the bets out on the roulette board like I said the game will be unplayable and considering that nearly all the profits from the fobts come from roulette profits will be seriously reduced . There is no way out for the bookies . Shop closures and diminished profits are a certainty. The high street bookies are finished
It might be that I do not understand this but as regards FOBT bookies will keep the machines but the stake is £2 so a problem gambler will still bet but more slowly or alternatively place a bet?
If my summing up above is correct takings and profits will slow but why by a third? Suspect the managers will market something else to pull in the punters in due course.
Yes the businesses will adapt by closing shops . Shortening opening hours . Making staff redundant all to compensate in loss of takings and profits . The free money that the fobts have provided for the bookies has come to an end . Profits are going to be seriously reduced along with the share price .
Yes the businesses will adapt by shop closures , none of this 10pm closing , they will close et en racing finished at 5pm like they used to . Shorter opening hours less executive staff for example shop business performance managers etc. This £2 minimum stake us going to have dramatic consequences there is no doubt about it
Disagree the business and shops will adapt not disintegrate.
Not a chance ,.once this £2 has been implemented the actual severity of the impact on loss of profits will become very evident . Without the fobts the betting shops will disintegrate.
While I agree the FOBT is going to happen at £2. I believe that long before 2020 the sports betting prospects in the USA will have boosted the sp beyond any losses from FOBT.
If they weren't going to shitt on their own they would have reduced the stakes to £20-30 but they didn't they reduced them to £2 the most severe option . The £2 stakes has been confirmed it's happening make no mistake .
Want to bet on that£ 2020 will come and go. Something might change. But come on for christ sake man Tories ain't going to shit on their own