FOBT Fight Wages On

The battle continues between local UK councilors and high street betting shops. A new survey indicates more than 70 percent of MPs agree tighter regulations are needed for fixed-odds betting terminals (l.), which offer single bets of up to £100.

Councilors call for fewer bookies

A group of local UK lawmakers continues to push for tighter restrictions and lower bets on fixed-odds betting terminals, the high street betting machines notoriously known as the “crack cocaine” of legal gambling.

According to BT.com, the Local Government Association wants maximum stakes on FOBTs machines cut from the current £100 (US$146), and has also called for more authority to limit the number of bookmakers.

“The higher stakes permitted on FOBTs is significantly out of line with other high street gambling machines and the harm and anti-social behavior they can cause has become an issue of growing national concern,” said LGA Chairman and Councilor Simon Blackburn. “Someone playing on a machine can lose £100 in a matter of seconds in a single play on an FOBT. This is money many people can’t afford to lose and needs to be looked at again.”

A recent survey indicates that of 150 MPs polled between February 25 and April 6, 72 percent agree there is a need for greater government regulation. “With two-thirds of MPs calling for tougher regulation of FOBTs, we urge the government to honor its previous commitment and launch a review of stakes at the earliest opportunity,” said Blackburn.

The consensus among the critics is that the maximum stakes on FOBTs should parallel those of other high-street games, where the top stake is £2, or casinos, where bettors cannot wager more than £5 at a time.

“Councils are not anti-bookies,” Blackburn noted, “but a new cumulative impact test would give them the power to veto new shops—and FOBTs—in areas already saturated by betting shops.”

The Association of British Bookmakers responded in a statement, saying betting shops “are the safest place to gamble, and we work closely with local councils all across the country, and with the Local Government Association itself, on a variety of issues and community initiatives.

“The government made a decision last July to leave stakes and prizes on gaming machines as they are, noting that local authorities already have sufficient powers, via the licensing process, to manage the presence of betting shops on the high street,” the statement continued.

The government’s Department for Culture, Media and Sport chimed in with a promise to “monitor the effectiveness of existing gambling controls and … take further action if necessary. We will set out our views on a review of stakes and prizes of gaming machines in due course.”

SBC News reports that betting shops in London’s Chinatown have backed an initiative by GamCare to offer multi-lingual counselling and treatment for compulsive gamblers. The counseling program, based in Soho Square, is available in Cantonese, Mandarin and English. Malcolm George, chief executive of the ABB, said, “This is a really important initiative, which will ensure people who need help can get it. This project breaks down barriers within the communities the shops serve.”

At the same time, Gala Coral just agreed to pay out about £880,000 (US$1.284 million) after letting a problem gambler—who stole to feed his habit—continue running up debts. The UK Gambling Commission said Gala Coral failed in its duty to prevent money laundering and compulsive gambling. According to news reports, Gala Coral relied on “uncorroborated” information that the man was independently wealthy. The bookmaker will pay £846,000 to the theft victim and £30,000 to cover the cost of the investigation. Gala Coral promised to “take steps to improve its anti-money-laundering and social responsibility processes.”

In another case earlier this year, Paddy Power was ordered to pay out £280,000 after letting a problem gambler keep betting until he lost his job and his home.

Richard Watson, the commission’s program director, said, “We expect the industry will learn the lessons from this case, as it is their responsibility to keep crime out of gambling and protect vulnerable people from harm. We know that Gala Coral (has) reflected heavily on this case and (has) assured us of actions they have taken to address the failings.”

Reformed gambling addict Matt Zarb-Cousin, spokesman for the Campaign for Fairer Gambling, isn’t impressed. “We were told three years ago by the Gambling Commission that Coral had learned their lesson after a customer laundered nearly £1 million through their fixed-odds betting terminals,” he said.