Recently, the UK government announced a new measurement against the gambling market that left bookmakers extremely worried, and gamblers shocked. The new stake for fixed-odds betting terminal has dropped from £100 to £2.
Up to a point where UK high street betting shops might be at risk of closing for good.
With such a significant change set to happen in 2019, it is time to take a more in-depth look at the gambling world in the UK and think about the real consequences this decision will have on everyone, especially the real estate market.
How the new law will affect the betting shops
The gambling game is all glamour and shines for the big companies who operate in world-class casinos. However, for small betting shop owners, it means having to deal with sudden changes.
With such a strong law coming from the government, which will drop the maximum betting stake for FOBT to £2, combined with the fact online gambling is growing by the minute, betting shop owners are facing a tough truth. They might have to close.
Although this decision represents a major loss in tax money for the government, HM Treasury already has plans to make up for millions of pounds lost once the cut goes ahead. But how will the shop owners deal with it? More importantly, how will the state market survive this?
High street betting shops closure and the e-market
Like we previously said, such a huge decision affects everyone. It includes the real estate market as well. With betting shop owners and operators facing severe declines in their regular profits, how are they going to maintain a shop?
The rent costs keep going up, and with the sales expecting to go down the moment the new law comes into place, many stores will have to close next year, if not sooner.
Of course, this will have repercussions on the real estate market. Business owners will be forced to terminate their leases, so landlords ultimately will be losing an income as well.
This really worries all people involved in the real estate market: shop owners, bookmakers and of course, the gamblers. So what can they do to avoid this and survive the changes that are coming?
The truth is, there’s still a lot to do. Despite profit being threatened by the maximum stake being so low, operators can still save the high street betting shops and try to keep the business going for the next year.
To do this, it might be necessary for betting shop owners to restructure their business and consider new strategies outside relying on fixed-odds betting terminals to gain the most significant part of their money.
However, if this still does not work, there are plenty of deals between operators and landlords that could be done to avoid definite closure and get an agreement where both are happy with the result.