After the new regulation related to FOBT maximum stake reduction came into effect in the UK in April, bookmaker William Hill’s revenue from the fixed odds betting terminals (FOBTs) has dipped by a significant 40 percent.
The maximums stakes that could be placed on a fixed odds betting machine was brought down from £100 to £2. The maximum stake reduction of FOBTs is seen as one of the most defining steps taken by the authorities to tackle the pertinent issues of gambling addiction.
While it is becoming increasingly difficult for the bookmaker to make profits in the domestic market, the company’s overseas online operations, especially in the USA, helped them to compensate for the losses in the UK.
Talking about the disappointing figures from FOBTs in the UK, the gambling operator has said that odds are high that they shut around 40% of their 2,300 betting shops in the UK in the near future.
Following the new regulation Ladbrokes had also announced that they will close almost around 1000 stores in the UK. Ladbrokes operates a fleet of 3475 stores all across the country and has said that this stake reduction is injurious to the company’s health.
William Hill CEO Philip Bowcock, said, “The impact of the introduction of the £2 stake limit has been in line with our expectations. We are confident in our plan to manage this major change and will update more fully at the half year.”
The FOBT stake reduction has been taking a toll on the revenues of other gambling operators in the country as well. For Paddy Power Betfair, which is amongst the biggest gambling operators in the UK, the revenues from FOBTs has dipped by over 43 percent.