Horse racing industry urges caution on cutting maximum FOBT stakes

Weekend media reports that the new Culture Secretary Matt Hancock is supportive of drastic cuts to the maximum stakes punters can wager on fixed odds betting terminals (FOBTs) not only sent retail bookmaking share prices south Monday (see previous report) but have triggered a response from the racing industry.

The British Horseracing Authority has warned that chopping the maximum stake from GBP 100 to GBP 2 could be a step too far and one that would be disastrous for UK racing.

BHA exec director Will Lambe cautioned that his industry is heavily dependent on the bookmaking industry and warned that any measures which severely compromise the sport’s financial stability would have unintended consequences to British racing and the wider rural economy.

Lambe pointed to warnings from bookmakers that a radical cut in FOBT stakes could see the closure of hundreds of retail betting shops and consequent job losses, which would adversely impact media coverage and betting on races.

The 12 week consultative period on FOBTs ends today, although the final government decision may not follow immediately, analysts have pointed out.