Blog

Our Experts Comment the Times Series

See All the Comments
rss

What Is At Stake?

12 September 2017 by lberuti

Fixed-odds betting terminals – FOBT – have been dubbed the crack cocaine of gambling. They are very addictive machines. In the UK, they allow punters to stake up to £100 every 20 seconds and the latter spend roughly £1Bln a week trying their luck with them. They are cash cows for bookmakers, and of course they are cash cows for the Treasury for which they generate hundreds of millions of pounds in revenue every year. That was the main reason Mr Hammond had been reportedly resisting curbs on FOTB. But according to press reports, the Chancellor is now said to have accepted the need for a clamp down. Next month, the Department for Culture, Media and Sport will publish a report focusing “on stakes and prizes of machines, social responsibility within the industry and gambling advertising” in the Autumn, and the Government. People now expects the Government to limit the stakes on FOBT in its wake, potentially to £2 a turn. Investors did not wait for October to react, and they pushed LADLN’s ( Ladbrokes Plc ) 5-year risk premium 10bps wider at 333bps.