The maximum bet on fixed odds betting terminals in the UK will likely be reduced under recommendations in a government review of the country’s gambling industry released last week, but just how much it will be reduced is still under review.
The UK Department for Culture, Media and Sport released its long-awaited review of the industry, which has caused major concerns among the country’s bookmakers worried that a major reduction in the FOBT limit—which is being strongly backed by problem gambling advocates—would seriously hurt profits.
The review does call for a reduction in the maximum bet, which now stands at £100. The review, however, calls for a public comment phase to decide if the reduction should be to £50, £30, £20 or £2. The department is planning a 12-week consultation to allow interested parties to make their case as to what the final limit should be.
The department said it wants to reduce large player losses, minimize customer risks and harms, and protect the communities where the terminals are located with regards to problem gambling.
The consultation period will run until January, after which the Government will consider a formal change to the limit.
Opponents of the FOBTS—including many problem gambling advocacy groups—have pushed to have the limit reduced to £2. They charge that the terminals offer an extremely addictive form of gambling and that players can make £100 bets every 20 seconds.
British retail bookmakers, however, make their largest source of revenue off the terminal and have disputed charges that the terminals especially attract problem gamblers. The UK gambling industry is expected to lobby hard for not dropping the limit below £20, which they say would be disastrous for bookmakers.
The consultation period ensures that the issue will remain contentious. According to the UK newspaper the Financial Times, gambling industry insiders have said there has been strong debate within government over the betting limit. UK Prime Minister Theresa May and officials at DCMS have called for strong action, while reports suggest that the chancellor Philip Hammond is concerned about the impact on the Treasury’s tax receipts.
In September, analysts at Barclays forecast that Ladbrokes Coral would lose £437 million in annual revenues from FOBTs, if the maximum stake was reduced to £2. William Hill would lose £288 million, while Paddy Power Betfair would lose £60 million, the Times reported.
The review also asked the country’s Gambling Commission to look at whether the “spin speed” on FOBT games such as roulette should be increased from the current 20 seconds per bet. There will also be a “package of measures taking effect to strengthen protections around online gambling and gambling advertising” to help protect children, the Times report said.
The review highlighted advertising standards, player messaging/communications, industry guidelines, strengthening of stakeholders’ social responsibility code and further funding of research, education and treatment with regards to problem gambling.
The department also announced that GambleAware, the UK Advertising Association, broadcasters and gambling industry groups will come together to draw up a major two-year responsible gambling advertising campaign.
New advertising guidelines will also be drawn up by the Committees of Advertising Practice to help protect those at risk of problem gambling and children and young people by ensuring that the content of gambling adverts does not encourage impulsive or socially irresponsible gambling, the review said.
“It is vital that we strike the right balance between socially responsible growth and protecting the most vulnerable, including children, from gambling-related harm,” said Tracey Crouch, UK gambling minister in a press statement. “Given the strong evidence and public concerns about the risks of high stakes gaming machines on the high street, we are convinced of the need for action. That is why today we have set out a package of proposals to ensure all consumers and wider communities are protected.
“We have seen online gambling grow rapidly and we need to protect players in this space, while also making sure those experiencing harm relating to gambling receive the help they need,” Crouch said.
