Gambling firm hits out at crackdown

GVC weighs in on machine limit

The UK government has confirmed it will impose a drastic clampdown on what's been called the 'crack cocaine' of gambling.

Fixed-Odds Betting Terminals (FOBTs) - computerised slot machines which run the likes of roulette, bingo, or horse racing games - are being targeted, as they allow players to bet huge amounts of cash in quick succession.

It's hoped the new limits will curb levels of problem gambling.

But there's already been a bitter reaction from the Island's gaming industry.

What's the new limit?

This move has been in the pipeline for some time.

Until now, gamblers have been able to pump up to £100 into these machines every twenty seconds - that's thousands of pounds potentially gone in a matter of minutes.

Under the new rules, the maximum amount 'per spin' will be cut to just £2.

It's been welcomed by addicition charities both here and in the Isle of Man, including Motiv8, which has previously identified compulsive gambling as a 'creeping' problem among the Manx population.

Hitting the local industry?

Athol Street firm GVC Holdings PLC is one of those which will be directly affected by the move.

As well as owning brands like Labrokes Coral and Foxy Bingo, GVC also develops and licences the technology which powers many high street and casino gambling machines.

The company has issued a lengthy statement in response to the UK Government's latest announcement.

While bosses have welcomed the 'certainty' it brings, they are 'disappointed with the outcome', and warn that it could lead to betting shop closures and job losses.

They go on to call for an 'adequate implementation period' to prepare businesses for the profit hit, and to give their staff time to re-engineer their products in order to comply.

GVC has also confirmed it will not be appealing against the decision.

The statement predicts an immediate hit of £160 million in pre-tax earnings for the year ahead.

However, GVC, which turned over £783 million in 2017, says it 'expects to retain a profitable and highly cash generative' business regardless.

There's also been a sting for Ladbrokes Coral shareholders, which was acquired by GVC in December last year.

A limited number of CVR bonuses - which would have entitle shareholders to extra financial benefits on completion of the deal - will now be effectively nullified.

In spite of all this, CEO Kenny Alexander says he is 'confident that GVC can continue to deliver shareholder value.'