Triennial Review findings delayed until “October at the earliest”
Delay considered good for operator profits in the short term but also constrains M&A activity
The results of the government’s Triennial Review into FOBT stakes and gambling advertising will not be published until October at the earliest, according to Tracey Crouch, the minister with responsibility for gambling.
Crouch was asked about the review, which was launched in October last year, during Thursday’s Ministers Questions in the House of Commons.
“Purdah [ahead of the election] interrupted the final stages of our consideration of the evidence received and the subsequent internal cross-government process of approval and sign-off,” Crouch explained.
“So therefore I’m afraid that we’re back at the start of that process and, as a consequence of that taking at least 12 weeks, I wouldn’t expect any further announcement until October at the earliest.”
Crouch added: “I share the frustration of many people across the House. I have been dealing with this issue as a minister since I walked into the department in 2015.
“We must ensure that we have a proper evidence-based response to the issue of stakes and prizes.”
The review is expected to cut FOBT stakes and impose new advertising restrictions on gambling operators.
Dan Waugh, an analyst at Regulus Partners, has previously suggested an October publication would be good news for high-street operators with any implementation of reduced stakes likely to be delayed until October 2018.
However Simon French from Cenkos Securities has pointed out the delay to the review is “unhelpful” for firms looking at M&A.
“This [the delay] is likely to continue to act as a brake on industry consolidation – unhelpful in a slowing UK market with tough Euro 2016 comparatives to be lapped in June and July,” he said.
The Association of British Bookmakers said in a statement: “Any decisions affecting an industry that serves six million customers and employs over 52,000 people, more than the rest of the gambling industry combined, should be taken on the basis of the facts and evidence.
“We remain committed to working with the government and regulators on our responsible gambling agenda.”