Paddy Power hits out at Government curbs on betting shops

Ministers have handed greater powers to local authorities to limit the number of betting shops on Britain’s high streets, sparking an angry backlash from some leading bookmakers.

Betting shops will now be treated differently from banks or estate agents and their planning applications will be subject to far more scrutiny by local authorities to alleviate concerns over the “clustering” of bookies on Britain’s high streets.

The Government on Wednesday also announced a raft of safeguards around electronic gaming machines known as fixed-odds betting terminals, which have been dubbed the “crack cocaine of gambling” by campaigners who claim they are highly addictive.

Players who want to bet more than £50 in one go will have to ask over the counter, forcing them to interact with betting shop staff and allowing for an intervention if necessary. Although it is yet to be ironed out how the process will work in practice, staff are likely to unlock the software on the terminals preventing stakes of more than £50 to be placed.

Large bookies will also have to offer customers accounts so that activity can be tracked and monitored via statements.

However the Government stopped short of lowering the maximum amount players can stake in one go on fixed-odds machines, which currently stands at £100 every 20 seconds.

The announcement will be seen as good news for some bookies, including William Hill and Ladbrokes, which already have a large portfolio of betting shops in Britain and are in fact closing stores that are no longer viable.

William Hill chief executive, Ralph Topping, said the changes represented a "balanced response" to concerns about clustering and fixed-odds games.

However the announcement on planning triggered outrage from Paddy Power, which is seeking to expanding in Britain to break up the stranglehold of the big four high street bookies, which also include Gala Coral and Betfred.

Andy McCue, head of retail for UK and Ireland at Paddy Power said: “These proposed planning reforms are wholly unnecessary and will reduce competition in a sector with betting shop numbers already in decline: so far in 2014, 150 betting shop closures have been announced, with many more expected.

“In a market where the Big 4 incumbents control 90pc of the market and openly welcome planning restrictions, challenger brands like Paddy Power will be prevented from offering choice and value to consumers."

He added: “The proposed planning changes are a fudge not a fix and pre-empt an evidence based approach to addressing concerns about fixed odds betting terminals.”

Analysts described the announcement as a “best case” scenario for William Hill and Ladbrokes.

“We believe these measures… should reassure investors and soften the tone of the political debate on the machines issue,” analysts at Exane BNP Paribas said in a note.

Shares in both William Hill and Ladbrokes were trading up sharply following the Government’s announcement at lunchtime on Wednesday.