FOBT stakes slash puts shops future in risk

1,000 closed betting shops and 5,000 jobs in risk, this according to Ladbrokes officials will be a result of slashing fixed odds betting terminals (FOBTs) maximum stakes to two pounds.

After years of discussing what the maximum stake on FOBTs should be, UK politicians decided that it must be lowered from £100 to £2. This went into effect on April 1st and unlike other news published on that day, it was not one of the April Fool’s jokes.

This decision potentially will have a huge effect on the future of betting shops run by UK companies. One of them is Ladbrokes which currently operates 3,475 shops.

“As announced during a recent trading update we expect up to 1,000 shops to become loss-making. Closures at this level would place up to 5,000 jobs at risk over the next 18 to 24 months“ – Ladbrokes representative said in an interview for The Sun.

William Hill is expected to add to it with closing 900 shops as well.

According to the UK Gambling Commission (UKGC) new rules are intended to prevent players from losing large amounts of money in a short space of time.