Boylesports placing bet on FOBT fallout for UK bookies
A REVIEW of fixed odds betting terminals (FOBTs) in the UK has really unnerved the gambling giants in the UK, Paddy Power Betfair among them. The machines have been likened to crack cocaine for problem gamblers and there will inevitably be restrictions on them. A story that appeared last month suggesting that a reduction of the maximum bet to £2 was on the cards really upset the industry. The review is looking at changing the current regime which allows gamblers to place bets of up to £100 every 20 seconds, to between £50 and £2. Last year analysts at Barclays forecast that a reduction to £2 would cost Paddy Power Betfair £60m, while Ladbrokes and William Hill would lose significantly more.
The rumours caused the share prices to fall, although they have recovered since then. However, it is an ill wind which doesn’t bring good luck to someone and the latest developments might provide an opportunity for Boylesports. Founder John Boyle has long harboured ambitions to enter the UK. Over a decade ago the company almost bought the Tote and unsuccessfully tabled a €120m bid for 360 bookmakers being sold as a result of the merger of Ladbrokes and Coral in 2016.
However, I understand that the Irish group — whose model does not depend on FOBTs — will wait to see how the new limits affect British bookies — and is betting that it will pick up a few bargains when the fallout is apparent.