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Paddy Power Betfair downplays impact of gaming machines stake limit

By BFN News | 08:06 AM | Thursday 17 May, 2018


Paddy Power Betfair has said the decision by the Department of Digital, Culture, Media and Sport to implement a new stake limit for gaming machines of £2 will not have a material impact on its UK retail strategy. It estimates that the direct, pre-mitigation, impact of the new stake limit would be a 33% to 43% decrease in total machine gaming revenue. In 2017, this would have equated to a £35m to £46m revenue impact, representing 2.0% to 2.6% of group revenue. Potential mitigation factors on the group's profitability include reduced direct variable costs (including Machine Gaming Duty at 25% and supplier revenue share), product development, substitution to other betting products and market consolidation. Peter Jackson, Paddy Power Betfair's CEO, said: "We have previously highlighted our concern that the wider gambling industry has suffered reputational damage as a result of the widespread unease over stake limits on gaming machines. We welcome, therefore, the significant intervention by the government today, and believe this is a positive development for the long-term sustainability of the industry." At 8:06am: (LON:PPB) Paddy Power Betfair share price was -342.5p at 7907.5p Story provided by StockMarketWire.com

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