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Government cracks down on fixed-odds betting terminals Government cracks down on fixed-odds betting terminals
(35 minutes later)
The maximum stake on fixed-odds betting terminals (FOBTs) is to be cut, after the government admitted that the current level of regulation on the machines, which allow gamblers to bet up to £300 a minute, is “inappropriate”.The maximum stake on fixed-odds betting terminals (FOBTs) is to be cut, after the government admitted that the current level of regulation on the machines, which allow gamblers to bet up to £300 a minute, is “inappropriate”.
In a long-awaited and lengthy review, Department for Culture, Media and Sport minister, Tracey Crouch, said the government would cut the maximum bet on the machines from £100 to between £50 and £2. In a long-awaited and lengthy review, Department for Culture, Media and Sport minister, Tracey Crouch, unveiled proposals to address FOBTs, as well as online gaming and advertising.
During a 12-week consultation period, DCMS will also consider slowing the pace at which bets on the machines can be made from In the most keenly-awaited element of the review, she said the government would cut the maximum bet on the machines from £100 to between £50 and £2.
Crouch said stake reduction was intended to “reduce the potential for large session losses and therefore to the potentially harmful impact on the player and their wider communities”.Crouch said stake reduction was intended to “reduce the potential for large session losses and therefore to the potentially harmful impact on the player and their wider communities”.
The review also found that bookmakers, who are allowed four FOBTs per shop, tend to cluster them “in areas with “greater levels of income deprivation and more economically inactive residents”. The review also raised concern that bookmakers, who are allowed four FOBTs per shop, tend to cluster them “in areas with “greater levels of income deprivation and more economically inactive residents”.
FOBTs have sometimes been dubbed the “crack cocaine of gambling” due to the supposedly addictive nature of the games they offer, such as roulette allowing a £100 bet every 20 seconds. During a 12-week consultation period, DCMS will also consider slowing the pace at which bets on the machines can be made from the current interval of 20 seconds.
FOBTs have sometimes been dubbed the “crack cocaine of gambling” due to the speed and supposedly addictive nature of the games they offer, such as roulette.
A report by the Gambling commission earlier this year found 43% of people who use the machines are either problem or at-risk gamblers.A report by the Gambling commission earlier this year found 43% of people who use the machines are either problem or at-risk gamblers.
But bookmakers, whose £1.8bn income from the machines accounted for more than half of their revenues last year, have played down links to problem gambling and are expected to lobby heavily against their nightmare scenario, a cut to £2. But bookmakers, whose £1.8bn income from the machines accounted for more than half of their revenues last year, have played down links to problem gambling and are expected to lobby heavily against a cut to £2 during the consultation.
The Association of British Bookmakers has said this would cost 20,000 jobs and would slash the Treasury’s income from machine gaming duty, worth more than £700m last year.The Association of British Bookmakers has said this would cost 20,000 jobs and would slash the Treasury’s income from machine gaming duty, worth more than £700m last year.
As well as addressing FOBTs, the review announced proposals for greater restrictions on gambling advertising, as well as an examination of online gaming, which accounts for 44% of the sector. As well as addressing FOBTs, the review addressed the fast-growing online gaming sector, which took in £4.5bn from seven million customers last year, according to Gambling Commission statistics.
DCMS called on online gaming companies to speed up the pace of initiatives to prevent problem gambling, including “self-exclusion” schemes that allow customers to bar themselves from gambling.
“The government, and [industry regulator] the Gambling Commission, will be paying close attention to industry progress in this area and will act accordingly,” the review said, adding that new legislation could be passed if the Commission’s powers are deemed insufficient.
The review stopped short of recommending any curbs on the amount of gambling adverts on television, despite pressure from campaign groups to limit their spread.
Instead, it confirmed plans revealed in the Guardian that would see the industry and broadcasters pay for a responsible gambling advertising campaign costing up to £7m, a deal Labour deputy leader Tom Watson MP has referred to as a “stitch-up”.
DCMS also vowed to back efforts by the UK’s leading gambling charity GambleAware to roll out more specialist clinics to help addicts, something the organisation has said will require an increase in funding, potentially including a statutory levy on firms.
The review was originally due to be released in June but was delayed when the prime minister called a surprise general election.The review was originally due to be released in June but was delayed when the prime minister called a surprise general election.
More to follow...