The UK has implemented cuts on the maximum bet allowed at fixed odds betting terminal from £100 to £2 and the move has already resulted in reports of bookmakers introducing new games to get around the cuts as well as confusion from gamblers over the new rules.
The UK newspaper the Guardian—which has championed the cuts—reported that High Street bookmakers introduced new roulette-style games with higher stakes, many on the same day that the FOBT cuts went into effect. The games were launched by Betfred and Paddy Power while William Hill reportedly planned to launch its own game.
The games, however, where quickly removed after warnings from the UK Gambling Commission. The controversial new games also drew fire from politicians who backed the cut in FOBT stakes.
“We cut FOBT stakes to £2 to protect vulnerable people from gambling-related harm, and operators should respect both the letter and the spirit of that change,” said UK Sports minister Mims Davies. “We are watching very closely to see how the industry reacts to this measure and will not hesitate to act if we see evidence of harm.”
According the Guardian, Betfred began offering a roulette-style called Virtual Cycling which allows gamblers to place bets over the counter on a paper graphic similar to a roulette table. The game features a maximum stake of £500. Players bet on when an animated cyclist travelling around a track will be overtaken by virtual competitors, based on numbers corresponding to sections of the track.
“Bets for all these products need to be filled out on a betting slip and handed over at the counter, where our staff can interact with the customers as they do so,” a spokesman for the company told the paper. “These are not machine games but over-the-counter bets.”
Paddy Power introduced a game called Pick ‘n’ 36 and features a maximum stake of £100. Players bet on numbers between 1 and 36 and other lines similar to roulette. A TV screen displays “hot” and “cold” numbers.
William Hill was reportedly testing a game called Wonderball, which will allow customers to stake up to £50 by filling in boxes on a printed roulette board. A draw then takes place on TV screens, with prizes of up to £25,000 available. The company now says it will not introduce the game.
All of the games technically complied with FOBT laws, but still brought sharp criticism.
“These new games seem like FOBTs by the back door and look like a pretty disgraceful example of bad faith by the bookmakers involved,” said Tom Watson of the country’s Labour Party. “They appear to be trying to cheat the system. “The gambling industry fought FOBTs reform tooth and nail, never accepting the terrible social harm they caused. They clearly haven’t learned any lessons. If they won’t reform themselves a Labour government is determined to do it for them.”
The Gambling Commission has already warned bookmakers in a letter that it will monitor the implementation of the FOBT cuts closely, but later added that it will also examine the new games being offered. That later apparently changed to an order to remove the games, which led to the games being withdrawn at Paddy Power and Betfair while William Hill said it will not launch its game.
“We’ve taken down Virtual Cycling to allow further discussion with the Gambling Commission,” a spokesman for Betfred told the Guardian.
The firms could still face regulatory action for introducing the games.
“We have been absolutely clear with operators about our expectations to act responsibly following the stake cut implementation this week,” said Richard Watson, executive director for enforcement, for the commission in a press statement. “We have told operators to take down new products which undermine the changes, and we will investigate any other products that are not within the spirit and intention of the new rules.’’
Meanwhile, UK bookmakers reported that many gamblers have been caught by surprise by the new FOBT stakes.
“We have had a number of complaining customers who left shops yesterday thinking they could go somewhere else to play,” John Heaton, chairman of Scottish independent chain Scotbet told the Racing Post. “I don’t know what they will do in the long term.”
Spokesmen for other bookmakers told the Post that they also saw surprised customers, but thee transition was going smoothly.
However, bookmakers such as Ladbrokes and William Hill have already announced they are considering closing hundreds of betting shops due to lost revenue from the cuts. Ladbrokes recently announced it may close 1,000 chops and William Hill has already said it may close 900 shops. Reports say Ladbrokes has already identified 71 shops it intends to close.
In another matter, the Gambling Commission has renamed its Responsible Gambling Strategy Board (RGSB) as the Advisory Board for Safer Gambling to help reflect a sharper focus on safer gambling.
The board will continue to provide independent advice to the commission as the regulator works to implement its new national gambling strategy over the next three years, with the overall goal of reducing gambling harms in the UK, according to a press release.
