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Based on what I read, I must be the only one who believes that tax on revenue from one arm bandits should increase. I watch people shoving money into these machines, not realising that the odds are stacked against them. When tax is increased bookmakers will simply reduce the percentage of the take it pays out to maintain profitabilty. After all, millions play the lottery which have even lower payouts. The threat of “I will close all my betting shops” is just that. The NHS spends a lot of money sorting out people whose lives have been ruined by gambling. It is about time bookmakers made a contribution.
Everybody in the media should realise that we are up against a bundle of spin. The problem we face is that when in the mid-2000’s UK GAAP was replaced by IFRS (International Financial Reporing Systems three safeguards built in to accounting were abandoned.
The means that for a number of reasons accounts can be somewhat adjusted by directors and, of course, entirely legally. The result is that anyone reading a Profit and Loss Account may find it difficult to interpret. However, one financial statement will be as good under IFRS as UK GAAP. This is the Cash Flow Statement, which is the best one to review these days.
Betfred Group Holdings Ltd published their accounts for the year ended 1 October 2023 (available from Companies House). They declared losses of £71.692 million in their Profit & Loss Account, but net cash INFLOW from Operating Activities of £71.032 million in their Cash Flow Statement.
This is why I am vary of bookmakers pleading poverty.
Nobody asked for FOBTs in betting shops, nobody asked for virtual racing/ greyhounds. These were created and implemented by bookmakers to take more money from punters in between live racing in the betting shops & take advantage of the boom of internet entertainment (and peoples boredom) then opened up an online revenue and profit stream. Both these ended up getting people hooked on chasing the dopamine hit of instant wins and inevitably chasing losses.
Any “hardship” that bookmakers feel now is entirely of their own making, reduced revenue and profit is from a peak that they artificially created themselves.
Its led to gambling harm and betting on horses being seen harmful and cruel rather than being seen as the wonderful sport and hobby that it is for so many of us.
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