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1 Paddy Power Betfair Plays Down ₤ 2 Stake Cut Impact

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Paddy Power Betfair soft-pedals ₤ 2 stake cut impact
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8 August 2018
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Gambling firm Paddy Power Betfair has said it can stand up to the federal government's plan to cut the maximum bet on fixed-odds wagering terminals [FOBTs] to ₤ 2.

The business made the statement as it reported a 4% rise in very first half earnings to ₤ 106m.
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"Our stores are more profitable, and outperform on sports betting, allowing them to much better endure the effect of lower machine stakes limits," the company stated.

The stake is being cut from ₤ 100.
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FOBTs produce ₤ 1.8 bn in revenue a year for the wagering industry, according to the Gambling Commission, in addition to taxes of ₤ 400m for the government.

High tramp

"We run in high-footfall, highly completed areas, which means we are well positioned to gain from competitor store closures," Paddy Power Betfair said.

"In the UK, we do not expect the federal government's proposed brand-new ₤ 2 stake limitation for gaming devices to have a product effect on our retail method," it included.

Rival William Hill, which produces simply over half its retail revenues from FOBTs, has actually cautioned 900 of its shops could become loss-making, potentially causing job losses.

Paddy Power Betfair said the proposed FOBT cut to ₤ 2 would lower its profits from video gaming machines by in between 33% and 43%.
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Based on its 2017 figures, this promotion code could suggest revenue would fall by approximately ₤ 46m, which it stated amounted to 2.6% of its total income.
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It likewise provided a gauge of the government's plan to increase remote video gaming duty to balance out some of the lost tax from FOBT. Every one percentage point increase - from the current level of 15% - would lead to an additional ₤ 2.5 m of duty to be paid.

Paddy Power Betfair stated it had actually contributed ₤ 170,000 to LGBT charities as part of its "Rainbow Russians" project, that included making a donation every time Russia scored on the planet Cup.

It was likewise behind the "official bus of gay professional footballers" that was on show at Brighton Pride.
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Paddy Power Betfair is pressing into The United States and Canada by buying US dream sports betting website Fan Duel.

It stated losses from the Fan Duel business and new taxes in Australia would put pressure on its full-year outcomes.

Ed Monk, associate director of Fidelity Personal Investing's share dealing service, stated: "It wasn't all about the World Cup for Paddy Power Betfair. Half-year numbers showed a 13% boost in profits in the 2nd quarter of 2018, however earnings was up 9% in the yohaig code period prior to the competition."

Betfair has actually been increasing its costs on advertising considering that March in an attempt to apprehend its falling market share.

Peter Jackson, its chief executive, said this promotion code was paying off: "The World Cup was a display occasion for Paddy Power, with a series of effectively carried out marketing projects leading to it being one of the UK's most discussed brands in social networks discussions around the tournament."