Betfred are only one of several bookmakers urging the UK government to rethink the law change that will reduce the maximum stakes allowed in betting shops’ Fixed-Odds Betting Terminals from £100 to £2.
But the Salford-based bookmaker has more cause than most to be concerned about the change of legislation. Analysts have estimated that 83% of Betfred earnings were generated from its network of retail shops, where FOBTs are situated. The firm is warning that up to 4,500 high street jobs are at risk due to loss of income and they have just reported an annual operating loss of £13.4m, despite posting an increase in revenue and earnings.
Total gambling turnover at Betfred, including the retail, online and Tote businesses, was up 17.5% to £12.7billion but the company has cited expenses, gaming duties and internet write-downs as reason for the net loss. Betfred, of course, also bought 322 high street shops from Ladbroke and Coral during the year.
Fred Done, head honcho at Britain’s largest independent bookmaker, has reportedly considered filing a judicial review application in an attempt to overturn the new maximum stake on fixed-odds betting terminals but the UK government is determined to be seen to be doing something to curb the scope of problem gamblers and FOBTs, rightly or wrongly, are viewed as the chief reason why so many people are getting into debt. The crackdown is not expected to be enforced until 2020, however, so all legal avenues will likely be explored.
Forecasts of impeding doom, gloom and mass unemployment has not stopped Done collecting a £10.2million dividend from the firm he formed with brother Peter in 1967, however. Their net worth is now estimated to be around £1.4billion – enough, really, not to have to worry about a relatively small loss in the grand scheme of things. No doubt that World Cup will be helping to redress the balance!
