The UK government confirmed on Wednesday, April 30, 2014 that it is taking a more reasonable approach to reducing the threat of problem gambling represented by the Fixed Odds Betting Terminals (FOBT) and the location of betting shops in the country.
FOBTs contribute about GBP 1.5 billion in annual revenues for the biggest betting firms in the UK and instead of lowering the betting limits, the government decided that players who wish to spend more than GBP 50 on the betting machines must pay over the counter before they play. Large companies will have to offer player accounts so that players’ activities are tracked and monitored.
Because local councils don’t have the authority to reject betting shop applications, according to analysts the well-established companies like William Hill, Coral & Betfred and Ladbrokes will have an advantage over the smaller companies that want to open betting shops in the same location.
The more reasonable approach from the government also resulted in rising share prices for gambling firms, but not everyone was thrilled about the restrictive measures. Paddy Power wasn’t happy with the new regulations which would likely have an impact on their plans to expand in the UK.
The head of retail for UK and Ireland at Paddy Power, Andy McCue, told the Telegraph newspaper that the reforms would reduce completion and many betting shops would close down. “In a market controlled 90% by four big companies that welcome the restrictive measures would prevent new ones like Paddy Power to offer choice and value to customers. The reforms are not based on evidence to addressing the problem about fixed odds betting terminals,” he added.