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Crackdown on fixed-odds betting terminals unveiled Crackdown on fixed-odds betting terminals unveiled
(about 2 hours later)
The maximum stake on fixed-odds betting terminals 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 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, the 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 £2 and £50.In a long-awaited and lengthy review, the 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 £2 and £50.
Fixed-odds betting terminals (FOBTs) are machines, found largely in bookmakers and betting shops, that allow customers to stake up to £100 every 20 seconds on digital versions of games such as roulette.
Critics of FOBTs say they are particularly addictive, allow gamblers to rack up huge losses within a few hours, and are concentrated in deprived areas. They have also been linked to money laundering.
It depends on the outcome of a 12-week consultation. If maximum stakes are cut to £2, bookmakers say shops will close en masse and problem gamblers will get their fix elsewhere. If stakes are cut to £50, it will be business as usual for bookmakers, with campaigners warning that gamblers will continue to make huge losses. Something in between seems the most politically palatable option for the government.
While bookmakers are expected to lobby for the £50 option, they were warned that this amount would involve “minimal change to the status quo”, suggesting lower options of £20 or £30 are more likely.While bookmakers are expected to lobby for the £50 option, they were warned that this amount would involve “minimal change to the status quo”, suggesting lower options of £20 or £30 are more likely.
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”.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”.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 poorer areas with higher unemployment.The review also raised concerns that bookmakers, who are allowed four FOBTs per shop, tend to cluster them in poorer areas with higher unemployment.
During a 12-week consultation period, DCMS will consider slowing the pace at which bets can be made on the machines from the current interval of 20 seconds.During a 12-week consultation period, DCMS will consider slowing the pace at which bets can be made on the machines from the current interval of 20 seconds.
Labour’s deputy leader, Tom Watson, said the review was “deeply disappointing”. Shares in William Hill gained 2% and Ladbroke Coral 0.6% in morning trading, indicating investors believe the review could have been harsher on the bookmakers.Labour’s deputy leader, Tom Watson, said the review was “deeply disappointing”. Shares in William Hill gained 2% and Ladbroke Coral 0.6% in morning trading, indicating investors believe the review could have been harsher on the bookmakers.
“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.”“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.”
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.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.
FOBTs have sometimes been called the “crack cocaine of gambling” due to the speed and apparently 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.FOBTs have sometimes been called the “crack cocaine of gambling” due to the speed and apparently 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 stakes.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 stakes.
The Association of British Bookmakers has said this would cost 20,000 jobs and slash Treasury 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 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”.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.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.”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.”
The review also addressed the fast-growing online gaming sector, which took in £4.5bn from 7 million customers last year, according to Gambling Commission statistics.The review also addressed the fast-growing online gaming sector, which took in £4.5bn from 7 million customers last year, according to Gambling Commission statistics.
The 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 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 volume 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 force the industry and broadcasters to pay for a responsible gambling advertising campaign costing up to £7m, a deal Watson has branded 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 Watson has branded a “stitch-up”.
The DCMS 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 DCMS 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 due to be released in June but was delayed when the prime minister called the snap general election.The review was due to be released in June but was delayed when the prime minister called the snap general election.