Heads of top UK betting operators have sent a letter to Matthew Hancock, the Culture Secretary, in an attempt to prevent the expected crackdown on fixed-odds betting terminals (FOBTs) which would end up with a massive stake reduction to £2.
Currently, players are still allowed to place a maximum bet of £100 on the electronic machines every twenty seconds. However, large betting companies fear of the pending possibility that the FOBTs maximum stake is to be cut to £2. A number of gambling companies, including William Hill, GVC Holdings, Betfred, Jenningsbet and Scotbet opposed to such a step, saying that a maximum stake of £2 would have a fatal impact on both the gambling revenue generated and the jobs in the industry, warning that such a decision could lead to massive lay-offs across the sector.
Now, gambling operators’ representatives asked Mr. Hancock not to risk with the future of betting outlets and said that slashing the maximum stake to £2 only equals to the terminals’ suspension. Their opinion has also been backed by the Association of British Bookmakers that has also been seeking talks with Mr. Hancock.
In their letter, the executives of some of the largest betting businesses in the UK said that they would like to express their concern with the pending decision of the Government, with a reduction of the maximum stake from £100 to £2 looking more possible by the day. However, gambling operators’ representatives also said that the reduction of the maximum stake should respond proportionately and consistently with the evidence against the electronic terminals.
They further explained that for them, the reduction of the FOBTs maximum stake to £2 is a disproportionate response and would hurt retail betting in the UK a great deal, with the consequences expected to be catastrophic for retail betting sector in the country, as well as to the wider economy.
According to representatives of large UK bookmakers, a recent analysis from KPMG shows that stake reduction to £2 would end up with massive lay-offs across the industry, with 21,000 direct job losses generated, and half of the UK betting outlets set to close. The analysis has shown that HM Treasury is to lose a total amount of £1.1 billion over the upcoming three years.
UK Treasury Backs the Reduction
As previously reported by Casino Guardian, the Department for Digital, Culture, Media and Sport (DCMS) has initiated a review into the fixed-odds betting terminals. In addition, recent media reports have suggested that the UK Treasury is to support a harsh reduction of the machines’ maximum stake. For now, rumour has it that Chancellor Phillip Hammond was also willing to reduce the maximum bet allowed per spin to £2.
As mentioned above, the UK Treasury was reported to be “fully supportive” of the work done by the Department for Culture, Media and Sports set to make sure that the gambling regime in the UK would continue to balance the needs of more vulnerable individuals, as well as the ones who gamble responsibly and the ones working in the local gambling sector.
Back in March, the major gambling regulatory body – the UK Gambling Commission (UKGC) recommended that the fixed-odds betting machines’ maximum stake should be reduced to £30 or less. Still, its recommendation has no binding power for the final decision of the Government.
- Author
Daniel Williams
