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FOBT Recommendations Not Likely to be followed
U.K. GOVERNMENT UNLIKELY TO FOLLOW POLITICAL GROUP RECOMMENDATIONS ON F.O.B.Ts (Update)
Do MPs in the All Party Parliamentary Group really understand the commercial implications?
The recommendations earlier this week on Fixed Odds Betting Terminals by the "unofficial" All Party Parliament Group of MPs led by Labourite Carolyn Harris are unlikely to be followed, especially in regard to lowering maximum staking limits to GBP 2, London analysts at Numis Securities opined late Friday.
Numis believes the UK government will ignore the calls for a massive reduction in the maximum stake for the machines, which are widely used in retail betting shops. The broker believes the government will take a more measured approach when its own second review of FOBTs is published.
The All Party Parliamentary Group has recommended that the maximum bet on the machines should be reduced from GBP 100 to just GBP 2, and that the UK government should consider slowing the speed of spins on the machines to reduce the amount wagered in a session.
Numis calculates that if government decides to reduce the maximum staking level to GBP 40 on FOBTs, the profitability of betting shops could fall by 33 percent, with Ladbrokes the most exposed with 72 percent of group EBIT generated from UK shops, compared to William Hill's 58 percent.
The broker points out that cutting machine profitability by just 20 percent would knock 26 percent from Ladbroke’s earnings and 17 percent from William Hill.
The Numis warning of the dire consequences of uninformed political thinking echo those earlier this week from Berenberg analyst Roberta Ciaccia, who said that the GBP 2 stake limit had been suggested before but was not practical.
Commenting that the average wager per FOBT session was in the region of GBP 10 to GBP 15, she said that reducing staking limits below that benchmark has the potential to put High Street betting shops out of business with the consequent risk of massive losses in tax receipts for government and tens of thousands of jobs.
Danske Spil Bingo Moves to Microgaming -
The national lottery of Denmark, Danske Spil, is live on the Microgaming Bingo Network. Danske Spil, the Danish national lottery, is live on the Microgaming Bingo Network following a change to its licence conditions.
Quickfire live on Strendus -
Quickfire powered by Microgaming is extending its reach in the LatAm region with the signing of Strendus. Strendus is the online division of Logrand Entertainment Group. The group comprises several companies that operate gaming and entertainment establishments in Mexico, running 14 land-based casinos in total.
Quickfire content live on BetatHome -
Online gaming and sports betting company bet-at-home was founded in 1999. Today the company has 4.8 million registered customers around the world, offering sports betting, casino, live casino, Vegas games, poker and virtual sports.
Microgaming has donated £30,000 between four charities -
Gift of Giving provides Microgamingís customers the opportunity to vote for one of several charities in their region. In lieu of Christmas gifts, £30,000 is split equally between four global regions: Isle of Man, UK and Europe, Africa, and Rest of the World.
Entertainment Betting Odds: 90th Academy Awards -
The Shape of Water leads Sundayís 90th Academy Awards (8 PM ET, ABC) with 13 Oscar nominations, but when it comes to Best Picture, this highly-acclaimed film is a +140 second-favorite behind Three Billboards Outside Ebbing, Missouri at Ė115.
Fair Play Bets and QuickFire in Deal -
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