Impact on GVC from FOBT Stake Lower than Expected

GVC Holdings the owners of Ladbrokes and Coral, reported yesterday that the FOBT maximum stake which came into force on 1st April this year, has had less of an impact on revenues than first feared.

The group had initially forecast that the hit on revenues as a result of the new £2 limit on the terminals would be around a £145m reduction. However, yesterday the group revised this forecast to £130m in 2020, an announcement which saw the share price of GVC Holdings move north as a result.

Prior to the introduction of the new maximum stake limit on FOBT, GVC Holdings were one of many that derided the move, stating that it could potentially lead to thousands of job losses and countless closed shops.

Prior to 1st April the maximum bet limit on FOBT’s was £100 and shops managed to get around the maximum ruling of 4 terminals per shop, by opening an additional shop in the same town. In some instances just literally yards away from another of their branches.

Referred to by some sections of the main stream media as the ‘crack cocaine’ of the high street. The government moved to bring in the new lower maximum stake in part to protect vulnerable gamblers.

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Simon Wright

Simon Wright

Simon Wright has been both a player and an observer of the online casino industry for over 15 years. His knowledge of the online casino industry – to include sports is massive. Not many folks have the experience or his knowledge about online gambling. His adoration of football is also noted. He has painted his house blue (Chelsea) and annoys his neighbors with local football songs on game days.

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