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You can find the current article at its original source at https://www.theguardian.com/business/2018/jan/22/bookmakers-judicial-review-fixed-odds-betting-curbs
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| Version 4 | Version 5 |
|---|---|
| Bookmakers weigh up judicial review against FOBT curbs | Bookmakers weigh up judicial review against FOBT curbs |
| (3 months later) | |
| The government could face a high court showdown with bookmakers over fixed-odds betting terminals (FOBTs), amid industry dismay at suggestions that ministers have decided to cut maximum bets on the machines to £2. | The government could face a high court showdown with bookmakers over fixed-odds betting terminals (FOBTs), amid industry dismay at suggestions that ministers have decided to cut maximum bets on the machines to £2. |
| The stock market value of some of the UK’s biggest bookmakers slumped by more than £660m on Monday, following reports that new digital, culture, media and sport (DCMS) secretary, Matt Hancock, favours tough curbs on the lucrative but controversial machines. | The stock market value of some of the UK’s biggest bookmakers slumped by more than £660m on Monday, following reports that new digital, culture, media and sport (DCMS) secretary, Matt Hancock, favours tough curbs on the lucrative but controversial machines. |
| 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. |
| The UK has 33,611 FOBTs, each of which take more than £53,000 from gamblers per year. | |
| 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. |
| Bookmakers have previously ruled out launching a judicial review of the department’s decision, regardless of the outcome, due to the difficulty in proving the process was flawed. | Bookmakers have previously ruled out launching a judicial review of the department’s decision, regardless of the outcome, due to the difficulty in proving the process was flawed. |
| However, industry figures believe the government may have unwittingly opened the door to a legal challenge by appearing to take a decision before Tuesday, when a 12-week evidence-gathering period is due to end. | However, industry figures believe the government may have unwittingly opened the door to a legal challenge by appearing to take a decision before Tuesday, when a 12-week evidence-gathering period is due to end. |
| One senior figure at a major bookmaker said: “If it looks like they’ve ignored a lot of evidence and made up their mind there’s a risk [of a judicial review] from someone in the industry. | One senior figure at a major bookmaker said: “If it looks like they’ve ignored a lot of evidence and made up their mind there’s a risk [of a judicial review] from someone in the industry. |
| “If it’s a disaster-case scenario, there must be someone who’ll say we’ve got nothing to lose.” | “If it’s a disaster-case scenario, there must be someone who’ll say we’ve got nothing to lose.” |
| A source at another high-street bookmaker said: “It [a judicial review] is always a last resort but a departmental briefing has to be a major concern just days before the consultation closes.” | A source at another high-street bookmaker said: “It [a judicial review] is always a last resort but a departmental briefing has to be a major concern just days before the consultation closes.” |
| A departmental head at a third bookmaker said his firm could not afford to fund a legal challenge, but added: “Whether in the larger scale of things we’re approached to join an industry group is a different matter.” | A departmental head at a third bookmaker said his firm could not afford to fund a legal challenge, but added: “Whether in the larger scale of things we’re approached to join an industry group is a different matter.” |
| Bookies gained more than half of their revenues from FOBTs last year, pulling in £1.8bn from machines that allow gamblers to stake £100 every 20 seconds on digital casino games such as roulette. | Bookies gained more than half of their revenues from FOBTs last year, pulling in £1.8bn from machines that allow gamblers to stake £100 every 20 seconds on digital casino games such as roulette. |
| Campaigners against FOBTs claim they are particularly addictive, clustered in deprived areas, and allow gamblers to rack up huge losses. | Campaigners against FOBTs claim they are particularly addictive, clustered in deprived areas, and allow gamblers to rack up huge losses. |
| But in a statement to the stock market, Ladbrokes said a cut to £2 would “fail to adequately address any issue of problem gambling” and have “serious consequences” for the survival of high-street bookmakers and the horse-racing industry, which is part-funded by a levy on bookies’ profits. | But in a statement to the stock market, Ladbrokes said a cut to £2 would “fail to adequately address any issue of problem gambling” and have “serious consequences” for the survival of high-street bookmakers and the horse-racing industry, which is part-funded by a levy on bookies’ profits. |
| The bookmaker is in the midst of a takeover by the online gaming specialist GVC, with the value of the deal directly linked to the outcome of the review. | The bookmaker is in the midst of a takeover by the online gaming specialist GVC, with the value of the deal directly linked to the outcome of the review. |
| An 8% fall in Ladbrokes’ share price on Monday took its stock market value down £281m to just above £3.1bn, indicating investors now think a cut to £2 is more likely than it was. GVC’s stock also declined, falling 4%. | An 8% fall in Ladbrokes’ share price on Monday took its stock market value down £281m to just above £3.1bn, indicating investors now think a cut to £2 is more likely than it was. GVC’s stock also declined, falling 4%. |
| William Hill fell nearly 12%, cutting its stock market value by £347m. | William Hill fell nearly 12%, cutting its stock market value by £347m. |
| The DCMS insisted no decision on stakes had yet been taken. | The DCMS insisted no decision on stakes had yet been taken. |
| The Labour leader, Jeremy Corbyn, tweeted: | The Labour leader, Jeremy Corbyn, tweeted: |
| I hope the Government's review into gambling will result in action to tackle highly addictive Fixed Odds Betting Terminals. Labour is committed to reducing the maximum stake from £100 to £2 a spin. The consultation closes tomorrow, please take part https://t.co/mb3p99aNxu | I hope the Government's review into gambling will result in action to tackle highly addictive Fixed Odds Betting Terminals. Labour is committed to reducing the maximum stake from £100 to £2 a spin. The consultation closes tomorrow, please take part https://t.co/mb3p99aNxu |
| •This article was amended on 22 January 2018 to correct the headline. The total value of major bookmakers had at one point slumped by £800m, not solely at Ladbrokes. | •This article was amended on 22 January 2018 to correct the headline. The total value of major bookmakers had at one point slumped by £800m, not solely at Ladbrokes. |
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