HM Treasury has shared concerns about the expected reduction of maximum stakes allowed at fixed-odds betting terminals (FOBTs) in the country. According to the Treasury, the upcoming crackdown on the machines is to end up with a sharp decline in the funds or financial reserves of public organisations aimed at helping local residents who suffer from gambling addictions.
This week, the discussions of the possible clampdown on fixed-odds betting terminals are becoming more and more heated, considering the recently-appointed Culture Secretary Matthew Hancock has backed the smallest possible new maximum on bookmakers’ high-street betting outlets machines.
The opponents of FOBTs have called for the maximum stake to be slashed from £100 to £2, but HM Treasury has now expressed fears that the crackdown plan is to inflict a massive blow to public funds aimed at tackling problem gambling. According to media reports, the Chancellor of the Exchequer Philip Hammond has now opposed the push, proposing a more acceptable reduction of the maximum stake to the amount of £20.
Public Finances Would Be Hurt, Says Hammond
Currently, the fixed-odds betting terminals bring a contribution of approximately £450 million annually in Machine Gaming Duty to the UK Government. This amount represents approximately 25% of the total amount spent on the machines on a yearly basis, which is estimated to £1.8 billion.
Chancellor Hammond has warned that the overall revenue brought by fixed-odds betting terminals is to face massive reduction in case that the machines’ maximum stake is cut to £2. What is more, he has also shared fears that he would be forced to raise taxes or enforce spending cuts to other areas of the market in order to compensate for the lost revenue.
As The Sun reported, a Government source shared that Culture Secretary Matthew Hancock seems to be rushing things a bit by suggesting such a large reduction of the stake and the Treasury would probably oppose to this. According to the person close to the situation, DCMS’ Hancock had not spent enough time thinking such a step over in order to actually understand what a damage would it inflict to public finances.
The official consultation on the maximum amount of the FOBTs’ stake is set to close this week, with the Government being expected to announce its final decision in a few weeks. In case that the ministers fail to reach an agreement on the matter, the UK Prime Minister Theresa May will have to intervene in the final decision-making process.
Apart from a revenue decline, the reduction of the maximum stake allowed at the terminals is expected to force many players go online, considering the fact that the online gambling market of the UK still provides them with plenty of betting options. On the other hand, a few days ago the British Horseracing Authority (BHA) further warned that the local racing industry would suffer a massive blow from the FOBTs crackdown in case that the maximum stakes allowed at the machines is slashed to £2.
- Author
Daniel Williams
