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Which means that the gaming machines contributed 39.8% of the gross win in the Ladbroke retail figures…very close to the 41% William Hill reported.
Sorry I can’t help to get an exact horseracing margin, but there’s no figures in the accounts which make that possible. If you knew how the margins on other sports (ie football) compare to horse-racing margins, you could make a calculated guess. I don’t know that info though.
william hill made a presentation in Nov 2009, page 20 of which indicated that in 2008 gross win attributable to its shops broke down as:
gaming 43pc
horses 33pc
dogs 12pc
football 10pc
other (numbers, cartoon racing?) 2pchttp://www.investis.com/wmh/investors/p … or_day.pdf
that mix if repeated at ladbrokes in 2009, would suggest almost 50pc of the 63m GPT attributable to horses in the shops.
or about 210m gross profit (ie net stake receipts) on real horses OTC.
maybe a bit more if ladbrokes had a rough time on the footy in 2009 ?
maybe a bit less if need to adjust GPT figure to exclude free bets, etc ?
If I’ve read the figures correctly then the percentage for gaming in shops is very disturbing. The number of punters playing the machines is from my observations relatively small in comparison with the number of other customers, and yet those percentages suggest that they are losing much more heavily, possibly due to the greater potential for addiction to the machines.
These enticements to ‘free play’ the machines should be outlawed, otherwise bookie’s claims to "encourage responsible gambling" is sheer hypocrisy.Ken, I can hardly believe the figures myself (but I haven’t really been into a betting shop for ages).
I thought the approx 40% gaming gross win was high, but as these gaming machines have low fixed profit margins, the figures at gross staked level seem even more frightening. If I’m reading the accounts correctly, at gross level, they suggest that about 76p out of every £1 staked in a Ladbrokes betting shop, goes into a gaming machine.
Maybe someone can just confirm this calculation is correct? Wit?
….about 76p out of every £1 staked in a Ladbrokes betting shop, goes into a gaming machine.
Maybe someone can just confirm this calculation is correct? Wit?
that’s my reading also, though as you say its important to remember the higher rate of recycling on the machines.
though Ladbrokes retain "just" 3.2p out of every £ bet on the machines (as against 16p OTC), the punter will hand over stakes on many more occasions on the machine in say 10 mins than he will over the counter in 10 minutes.
its the no-pause, get-into-a-fast-and-mindless-repeat-routine that makes machines a far different proposition to OTC when it comes both (a) to guarding against compulsive behaviour and, i suspect, (b) the punter’s chances of taking money out of the shop at the end of the day.
one of the issues with machines seems to be that punters keep recycling money into a machine until original pot and all returns made on it stay in the bookie’s pocket.
in practice more winners actually walk out of the shop with money OTC than off the machines, barry ?
The reason that FOBT machines account for such a high percentage of betting shop profit is because of what is known as the "churn factor", that is the speed with which any winnings can be reinvested. For much OTC business, the churn rate is very low (most traditional punters invest daily, collect the following morning and reinvest) whereas gaming machines enable rapid reinvestment of funds, and can provide large cash drop despite much tighter profit margins.
If I’ve read the figures correctly then the percentage for gaming in shops is very disturbing. The number of punters playing the machines is from my observations relatively small in comparison with the number of other customers, and yet those percentages suggest that they are losing much more heavily, possibly due to the greater potential for addiction to the machines.
These enticements to ‘free play’ the machines should be outlawed, otherwise bookie’s claims to "encourage responsible gambling" is sheer hypocrisy.Well said! Shocking figures, very disturbing if true!In 20yrs time half the country will be addicted to gaming machines and we"ll be laying "3 Cherries"!
I’ve heard on the grapevine that in the coming months, in order to reduce capital expenditure, Ladbrokes and the like are removing all the gaming machines from their shops and staff are being trained-up into the art of breeding flies. Each shop will have its own designated ‘climbing wall’ and punters will be able to select a stable of flies which will carry their own individual colours. Races will be run on similar lines to horse racing except that the stewards will be armed with fly-swats to deal with any rule transgressions.
It’s called progress and no doubt it will appeal to the multitudes.What they are planning on doing is removing the coin slots from the machines & making them ‘notes only’ & also making the minimum stake £2.
You wonder how much they’ll get away with before someone says ‘enough’
If I’ve read the figures correctly then the percentage for gaming in shops is very disturbing. The number of punters playing the machines is from my observations relatively small in comparison with the number of other customers, and yet those percentages suggest that they are losing much more heavily, possibly due to the greater potential for addiction to the machines.
These enticements to ‘free play’ the machines should be outlawed, otherwise bookie’s claims to "encourage responsible gambling" is sheer hypocrisy.
Yeah. I went to my options in a certain site, to only receive e-mails about sport bets. Low and behold, they still plague me with e-mails about these roullette typed games, and all the rest of them. Paddy Power i’m talking about here. I kid you not, as i type this message, i got an e-mail from the said firm, stating "Get a 100% match when you next deposit anything up to £50!" – for the casino section of their site. They are actively trying to reel people in, and gave me a free fiver bet on their casino games a few days ago.
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