A report concerning Britain’s finance minister Philip Hammond’s position on reducing the maximum stake allowed on fixed odds betting terminals sent stocks tumbling for gaming companies and caused the ministry to issue a clarification.
The ministry announced it fully supported a government proposal to toughen gambling rules and significantly lower the FOBT maximum bet, saying reports that it was worried about losing tax revenues were speculative.
The UK Government is considering cutting the current 100-pound maximum bet allowed on FOBTs to as little as ₤2. That has led to many analysts speculating that the Finance Ministry would oppose the move since it would result in a sharp decline in taxes the UK collects on FOBT bets.
However, the UK newspaper the Times, reported that Hammond was opposed to the cuts, may agree to a ₤2 limit if levies are raised on other forms of gambling to compensate for lost income from the FOBT machines that generate more than ₤450 million in tax annually.
The report caused shares in bookmakers including William Hill, GVC Holdings and Paddy Power Betfair, to fall sharply on the London Stock Exchange.
The ministry then issued the clarification.
“We are fully supportive of the Department of Culture, Media and Sport work to ensure the UK’s gambling regime continues to balance the needs of vulnerable people, consumers who gamble responsibly and those who work in this sector,” the ministry said through a spokesperson. “Any speculation on gambling taxes is just that.”
According to the Times, 22 MPs in the Conservative party have publicly backed a ₤2 limit as well as the Labour party’s leadership.
