This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/uk-news/2017/oct/31/uk-government-cracks-down-fixed-odds-betting-terminals-fobt

The article has changed 14 times. There is an RSS feed of changes available.

Version 5 Version 6
Crackdown on fixed-odds betting terminals unveiled Crackdown on fixed-odds betting terminals unveiled
(about 7 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 will be cut after the government admitted that existing limits on the machines, which allow gamblers to bet up to £300 a minute, are 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. Unveiling the keenly-awaited review, the Department for Digital, Culture, Media and Sport (DCMS) minister Tracey Crouch said the government would cut the maximum bet on the machines from £100 to between £2 and £50.
Bookmakers, who have warned that shops will close if maximum stakes are cut, are expected to lobby for the £50 option during a 12-week consultation period ending in January.
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.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.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.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. But the review warned that a £50 limit would involve “minimal change to the status quo”, suggesting lower options of £20 or £30, or the most extreme cut to £2, 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”. The DCMS will also consider slowing the pace at which bets can be made, from the current interval of 20 seconds.
She said the government hoped to protect the vulnerable people “exposed by the current weaknesses in protections”. Crouch said cutting stakes aimed to “reduce the potential for large session losses and therefore to the potentially harmful impact on the player and their wider communities”.
Figures from the UK’s leading GambleAware show that 233,000 FOBT users lost more than £1,000 in one sitting last year, while 650 people lost more than £5,000 and one person lost £13,778.
Crouch said the government hoped that introducing new curbs would protect 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. Labour’s deputy leader, Tom Watson, said the review was “deeply disappointing”, while shares in Ladbrokes and William Hill rose, indicating that investors thought the review relatively lenient.
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. “There’s an old maxim that the bookies always win and they’ve won again today,” said Watson, adding that gambling lobbyists were “grinning from ear to ear”.
“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.
Crouch said Watson had undergone a “conversion”, having been a member of the Labour government that was partly responsible for the spread of FOBTs due to its deregulation of the gambling industry in 2005.
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.
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. Robin Wales, the mayor of Newham in east London, criticised the government’s decision to consult further on reducing maximum FOBT stakes. In a letter to the Guardian he said: “It is over a year since the review was launched and the response is to kick the issue into the long grass with yet a further consultation. Newham residents cannot afford any further delay... Last year, in Newham alone, it is estimated that nearly £20m was lost on FOBTs. That is the price some of our poorest and vulnerable residents are paying because of this government’s continued inaction.”
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”. According to the Money Advice Service, the residents of Newham are the most likely in the UK to be burdened by debt. Wales said his borough has 81 betting shops – one of the highest concentrations in the country – with 12 shops on just one street. He urged the government to slash the stake to £2, despite the cost to the exchequer: “If the maximum stake level is set at anything over £2, it will show that the Treasury is putting exchequer profits before people.”
It added that bookmakers were “investing very significant sums of money” to tackle addiction. The Association of British Bookmakers (ABB) has said a cut in the maximum stake to £2 would cost 20,000 jobs and slash Treasury income from machine gaming duty, worth more than £700m last year.
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.” Speaking on BBC Radio 4’s Today programme, ABB chief executive Malcolm George said bookmakers that close would not be replaced by “bijou bakeries” but by “grotty amusement arcades”.
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 firms to speed up the pace of initiatives to address problem gambling, including “self-exclusion” schemes that allow addicts to bar themselves voluntarily but have failed in high-profile cases.
“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. But 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, the review confirmed plans revealed in the Guardian that would force the industry and broadcasters to fund a £7m responsible gambling advertising campaign costing, 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 also promised new guidelines to prevent gambling adverts from encouraging impulsive behaviour, as well as a commitment from the industry to ensure under-18s cannot access gambling content via social media.
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. It 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 could require a statutory levy on firms to address a funding shortfall.
Crouch said the government hoped gambling companies would increase their voluntary contributions to GambleAware, warning that the government would consider a mandatory levy if they don’t.
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.