Israeli gambling firms assess FOBTs legislation

Gaming firms such as Playtech are expected to lose up to €170 million a year as consequence of the maximum stake limit set on FOBTs.

UK.- Regulation changes on the gambling industry shook up the Parliament over the last few weeks and even threatened the budget plans for next year as parties couldn’t reach to an agreement. Finally, fixed odds betting terminals’ (FOBTs) maximum stake limit is set to be reduced by 98% to €2,2 sooner than the government wanted and the Israeli media is looking into how the new legislation will impact on Israeli owned firms.

According to The Jerusalem Post, firms such as Playtech, owned by Teddy Sagi, one of Israel’s wealthiest men, are bound to lose up to €170 million a year due to the new betting limit. However, such figures shouldn’t have a major impact on a large scale business such as Playtech’s, which continues to expand its worldwide reach and improving its operations.

Jeremy Wright, the culture secretary, issued a written statement last Wednesday afternoon confirming that the stake reduction is set to take place in April 2019, six months before than Chancellor Philip Hammond had stipulated in the official budget for next year. “The government has been clear that protecting vulnerable people is the prime concern, but that as a responsible government it is also right to take the needs of those employed by the gambling industry into account and provide time for an orderly transition,” the written statement said.

Other Israel-based firms such as 888 Casino, Winner and William Hill also operate in the UK and will be impacted by new legislation. However, shareholders have welcomed the new and improved law as being more transparent and fair, with William Hill’s share price increasing 2% upon hearing the government’s decision.