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Government cracks down on fixed-odds betting terminals Crackdown on fixed-odds betting terminals unveiled
(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 Digital, Culture, Media and Sport (DCMS) minister, Tracey Crouch, unveiled proposals to address FOBTs, as well as online gaming and advertising. 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.In a long-awaited and lengthy review, Department for Digital, Culture, Media and Sport (DCMS) minister, Tracey Crouch, unveiled proposals to address FOBTs, as well as online gaming and advertising. 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”. While bookmakers are expected to lobby for the £50 option, they were warned that this would involve “minimal change to the status quo”, suggesting two lower options of £30 and £20 are more likely.
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”. Crouch said cutting the stake aimed to “reduce the potential for large session losses and therefore to the potentially harmful impact on the player and their wider communities”.
She said the government hoped to protect the vulnerable people ”exposed by the current weaknesses in protections”.
The review also raised concerns 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”.
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.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 called 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 industry regulator, the Gambling Commission, earlier this year found 43% of people who use the machines are either problem or at-risk gamblers. However, Labour’s deputy leader Tom Watson MP branded the review “deeply disappointing”.
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. “Ministers have squandered a real opportunity to curb highly addictive FOBTs, which can cause real harm to individuals, their families and local communities,” he said. “After months of delays they’ve simply decided to have another 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. He said Labour would tackle a “hidden epidemic” of gambling addiction with policies including a cut in FOBT stakes to £2 and a ban on betting firms advertising on football shirts.
As well as addressing FOBTs, the review addressed the fast-growing online gaming sector, which took in £4.5bn from 7 million customers last year, according to Gambling Commission statistics. FOBTs have sometimes been called 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 industry regulator, 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 a cut to £2.
The Association of British Bookmakers has said this would cost 20,000 jobs and would slash Treasury income from machine gaming duty, worth more than £700m last year.
Speaking as the consultation period opened, the ABB said the “focus of any final decision should ensure measures are adopted that will be of genuine benefit to problem gamblers”.
It added that bookmakers were “investing very significant sums of money” to tackle addiction.
The Campaign for Fairer Gambling, which has led the campaign for a £2 maximum stake, said: “We are confident that, when all the evidence has been considered, £2 will be judged to be the most appropriate level.”
As well as FOBTs, the review addressed the fast-growing online gaming sector, which took in £4.5bn from 7m 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.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 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 government, and 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. The review stopped short of recommending any curbs on the volume 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”. Instead, it confirmed plans revealed in the Guardian that would force the industry and broadcasters to pay for a responsible gambling advertising campaign costing up to £7m, a deal Tom Watson branded 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.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.