1 Paddy Power Betfair Plays Down ₤ 2 Stake Cut Impact

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Paddy Power Betfair plays down ₤ 2 stake cut effect

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

The company made the statement as it reported a 4% increase in very first half revenues to ₤ 106m.

"Our stores are more profitable, and exceed on sports betting, allowing them to much better hold up against the effect of lower machine stakes limits," the business stated.

the yohaig code stake is being cut from ₤ 100.

FOBTs create ₤ 1.8 bn in income a year for the wagering market, according to the yohaig code Gambling Commission, along with taxes of ₤ 400m for the government.

High footfall
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"We operate in high-footfall, extremely competed locations, which suggests we are well put to take advantage of competitor store closures," Paddy Power Betfair said.

"In the UK, we do not anticipate the yohaig code federal government's proposed new ₤ 2 stake limitation for video gaming devices to have a material effect on our retail technique," it included.
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Rival William Hill, which generates just over half its retail incomes from FOBTs, has cautioned 900 of its stores might end up being loss-making, possibly causing task losses.
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Paddy Power Betfair stated the proposed FOBT cut to ₤ 2 would lower its earnings from 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 up to ₤ 46m, which it stated amounted to 2.6% of its overall earnings.
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It likewise offered a gauge of the government's plan to remote gaming responsibility to offset a few of the lost tax from FOBT. Each one portion point rise - from the existing level of 15% - would lead to an extra ₤ 2.5 m of task to be paid.
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Paddy Power Betfair said it had actually contributed ₤ 170,000 to LGBT charities as part of its "Rainbow Russians" project, which included making a donation every time Russia scored worldwide Cup.

It was likewise behind the "main bus of gay professional footballers" that was on program at Brighton Pride.

Paddy Power Betfair is pushing into the yohaig code United States and Canada by purchasing US dream sports wagering site Fan Duel.

It said losses from the Fan Duel company and brand-new taxes in Australia would put pressure on its full-year outcomes.
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Ed Monk, associate director of Fidelity Personal Investing's share dealing service, said: "It wasn't everything about the World Cup for Paddy Power Betfair. Half-year numbers revealed a 13% boost in income in the 2nd quarter of 2018, but profits was up 9% in the duration prior to the competition."
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Paddy Power Betfair has been increasing its costs on marketing given that March in an attempt to arrest its falling market share.

Peter Jackson, its chief executive, stated this promotion code was settling: "the yohaig code World Cup was a showcase event for Paddy Power, with a series of effectively executed marketing projects causing it being one of the UK's most discussed brands in social networks conversations around the competition."
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