A new study by the Campaign for Fairer Gambling recently concluded the Irish bookmaker Paddy Power places a disproportionate number of controversial fixed-odds betting terminals in minority ethnic communities. Using Gambling Commission data, the study indicated 61 percent of Paddy Power’s 349 betting shops are located in areas higher than average levels of non-UK-born residents. It stated Paddy Power has shown a “preference for opening shops in areas of greater ethnic mix and there is a direct correlation between these areas and higher revenues from fixed-odds betting terminals.” Paddy Power has argued that it has a fewer shops than competitors and as a result is forced to focus on urban areas.
Campaign for Fairer Gambling official Adrian Parkinson said, “Paddy Power achieves a higher return on their machines than any other bookmaker. They may argue they are effective at picking the right sites. We believe they are deliberately targeting those communities with populations susceptible to the kind of addictive play enabled by FOBTs.” Each betting shop is allowed to have up to four FOBTs, which critics in fact call the “crack cocaine of gambling,” allowing bets of up to $142 on casino games with delays of 20 seconds at most between wagers.
In 2015 FOBTs generated $2.41 billion in revenue for bookmakers. Paddy Power collects about $1,846 in profit per machine versus competitors whose machines generate only about $1,420.
Recently the Gambling Commission found that Paddy Power had encouraged a problem gambler to continue to bet until he lost his home, several jobs and contact with his children. The company was criticized for “failing to keep crime out of gambling and protect vulnerable people” and was directed to pay $398,000 to a “socially responsible” cause.
Sadiq Khan, London mayoral candidate from the Labor party, has made FOBTs and the latest report a campaign issue. “Almost every area of London with high non-UK-born populations has been targeted by them–not just one or two shops, but dozens in the same areas and in some cases on the same high streets. This isn’t chasing footflow, it’s targeting the most vulnerable people, people who have come here seeking refuge and a way of improving their lives. It is disgraceful behavior and reinforces why we must deal with the proliferation of betting shops in disadvantaged areas, and the addictive roulette machines which can cause so much misery,” Khan said.
Paddy Power recently bought the internet betting company BetFair, creating the largest publicly listed online gaming company.
