The British government may crack down on Fixed Odds Betting Terminals (FOBTs,) machines beloved of bookies in the UK, or it may not.
Tracey Crouch, the Under Secretary of State for Sport has long opposed the machines and has announced plans to cut their maximum stakes to £2 from £100. However, last week the Daily Mail published a story claiming that the Chancellor of the Exchequer (Britain’s treasury department) Philip Hammond, has put the brakes on the proposal, because it could cost the government a significant share of the £400 million the government collects in taxes each year from FOBTs.
The Mail’s story said, “The government is currently undertaking a review of stakes and prizes of gambling machines, that includes fixed odds betting terminals. The review will be published in the autumn.”
Sports Minister Crouch fired back, labeling the report as “Fake news.” The purpose of the crackdown is to supposedly dry up a cause of problem gambling. Backing up her claim is the fact that the Mail’s article only quoted “a Whitehall source who said the Treasury fears that cutting the stake to £2 would be ‘financially crippling.’ ”
So far Hammond himself has not commented on the story.
The FOBTs themselves bring in millions of pounds in profits annually and employ tens of thousands. Also known as B2 gaming machines in British law, they are important to the businesses of betting shop owners, such as William Hill, Ladbrokes Coral, and Betfred. Some say they account for half of their profits. Critics consider them to be very addictive because players can bet as much as £100 every 20 seconds.
Later in the week the Department for Digital, Culture, Media & Sport issued a clarification: “The government is currently undertaking a review of stakes and prizes of gambling machines, that includes fixed odds betting terminals. The review will be published in the autumn.”
The Association of British Bookmakers issued a statement that read: “The ABB has always argued that reducing the stakes on gaming machines in betting shops would have severe economic consequences, not just in terms of Exchequer revenues but also in terms of jobs and business rates.”
It added, “At the same time, reducing stakes on gaming machines in betting shops or anywhere else will do nothing to help problem gamblers.”
