Updated: 1st March 2021
A proposed government clampdown on fixed odds betting terminals (FOBTs) is likely to cause serious financial distress for bookmakers and betting shop businesses in the UK. The maximum bet allowed on these terminals, currently £100, is set to be reduced to between £2 and £50, with a £2 maximum thought to be likely.
The resulting drop in revenue for betting shops and bookmakers brings into stark reality the prospect of widespread insolvency. With huge losses predicted in both revenue and jobs, the industry faces tough times.
Fixed odds betting terminals allow bets to be placed every 20 seconds. As the maximum bet is currently £100, there is significant risk to those placing bets of suffering huge financial losses.
In fact, the total Gross Gambling Yield (GGY) for the gambling industry in Great Britain between April 2016 and March 2017, was £13.8 billion - a 2% increase on the previous year. During the same period, the overall number of gaming machines in this country rose to 182,916, generating £1.8 billion GGY in their own right.
In reducing the maximum bet allowable, the government aims to protect gamblers, particularly younger people, those vulnerable to addiction, and those already addicted to gambling.
The expected rise in financial distress in your industry is serious indeed, but there are steps you can take to protect your business from unmanageable debt. The first is to seek professional guidance and support from a licensed insolvency practitioner (IP), as they’ll ensure you receive reliable advice, and fully understand your options.
So what potential avenues might be available to you? Here are a few possibilities that could be suitable depending on your individual circumstances.
If you’re a bookmaker or betting shop owner concerned about the viability of your business, Real Business Rescue will provide professional assistance. We’ll explain your options in full, ensure you understand the ramifications, and support you at every stage. For more information and to arrange a free same-day consultation, call our expert team – we operate from more than 100 offices around the country.
13th October 2021
The Bank of England has said it anticipates that rates of corporate insolvency will increase in the coming weeks following the removal of restrictions on winding up petitions.Read More