The Department for Culture, Media and Sports (DCMS) is expected to publish its UK gambling industry report any time soon. The results of the review could change the entire gambling industry landscape in the country, since the report is to provide more clarity on matters related to the highly-controversial fixed-odds betting terminals (FOBTs).
If the UK Government takes into account the arguments of all opponents of the FOBTs, local bookmakers could face a crackdown on betting machines, which have been described as one of the most dangerous forms of gambling currently available in the country. Imposing tighter control on the machines, however, could see their profits experience a massive decline, which would undoubtedly hurt British bookmakers badly.
FOBTs’ Maximum Stakes and Gambling Addictions
Currently, fixed-odds betting terminals allow players put a maximum stake of £100 every 20 seconds – a stake that could lead to the massive loss of £18,000 in just an hour. However, large maximum stakes are not the only reason why FOBTs have been widely criticised. Campaigners who have insisted for tighter control imposed on the machines have blamed the terminals also for their highly-addictive nature and have claimed that FOBTs have been the reason for thousands of gambling addictions.
Some of them have insisted for a massive reduction of the maximum stake allowed, cutting it from £100 to just £2. Unfortunately for bookmakers who host such machines in their betting shops, such a reduction of the maximum stake could have a detrimental impact on their profits.
As mentioned above, the fixed-odds betting machines have been called one of the most serious problems of the UK gambling industry, with a rising number of gambling addictions being related to them.
UK Bookmakers Could Face FOBTs Crackdown
The Government’s Department for Culture, Media and Sports is expected to publish its report until the end of the week. It still remains unclear whether the Department would chose to impose stricter measures and would decide to cut the maximum stake to £2, as the FOBTs’ opponents insist. The truth is that such a massive stake reduction would not only cut gambling operators’ profits, but would also cut the money flow which the Government receives from FOBTs taxes and licensing fees. Last year, the UK Treasury’s income from the gaming duty generated by fixed-odds betting terminals amounted to over £700 million.
What is more, local bookmakers also claim that such a massive reduction of the maximum stake would cost the industry about 20,000 jobs, apart from costing it massive losses.
As reported earlier by Casino Guardian, most analysts have shared that a reduction to a maximum stake of £50 is more possible to be imposed, not to mention that it would be a wiser one, too. According to another opinion, another possible option that could be chosen by the Governmental Department, is a reduction of the maximum stake to between £10 and £30. Still, experts say that such a step would also cost too much to both the industry and the UK Government.
The exact measures that are to be taken against the rising popularity of FOBTs are not yet clear, but the UK Sports Minister Tracey Crouch is expected to soon unveil her long-awaited review. As a long-time opponent of the machines, Ms. Crouch is expected to insist for tighter regulation of the terminals. The publication of the review is to be followed by a 12-week consultation that is to play a crucial part in the final decision of the Department for Culture, Media and Sports.
- Author
Daniel Williams
