An information that the UK Government’s decision to delay the reduction of the maximum betting stakes allowed at fixed-odds betting terminals (FOBTs) until October 2019 was based on a “discredited” secret report issued by local gambling operator has emerged.
As Casino Guardian reported, last week Chancellor Philip Hammond revealed that the implementation of the gambling industry crackdown was put off in order for the Treasury to compensate for the revenue expected to be lost as a result of the cuts. The delay fuelled a massive outrage among anti-gambling campaigners and led to the decision of Tracey Crouch to step down from the role of Minister of Sports and Civil Society.
According to Mr. Hammond, local bookmakers had projected massive layoffs in the industry in case that FOBT stakes were reduced to £2, with the sector projecting that between 15,000 and 21,000 people would lose their jobs. The decision for the delay prompted anti-gambling campaigners to say Mr. Hammond was putting the gambling industry and lucrative gambling tax revenue first, instead of being more concerned about problem gamblers’ lives and well-being.
The Guardian, however, has managed to reach some documents which throw some shade on the initially revealed figures from a report prepared for the UK gambling industry by the accountancy firm KPMG. On the other hand, anti-gambling campaigners have claimed that such a report should not be present as a part of any policy decisions made by the Government.
Could the Decision for the Crackdown Delay Have Been Biased?
The report in question includes a disclaimer prepared by the accountancy firm itself, which warns readers that key assumptions on which the report was based, were set by the Association of British Bookmakers (ABB). As explained by KPMG in the disclaimer, the report was compiled in order to meet specific terms of reference agreed with the trade body of the bookmakers. The firm which created the report also made it clear that some features of the report were especially determined “for the purposes of the engagement”.
In the report’s disclaimer, KPMG also warned that some important estimates on whether customers would respond to FOBT stake reduction by turning to other gambling products had been “agreed with the industry”.
Still, The Guardian managed to reveal that the report reached UK Treasury officials, including Andrew Jones MP, who is the Exchequer Secretary to the Treasury. At the time, Mr. Jones told Malcolm George, who serves as Chief Executive Officer of the ABB that the report would contribute to the evidence base that was to be considered in the decision-making process.
The question is, whether a report created for the purposes of the accountancy firm with the gambling sector should be taken into account in the Government’s decisions which regard to the future of the entire industry and its customers. The facts revealed cast some doubt on the bookmakers’ claims that the FOBT crackdown would have serious consequences for them, including many betting shop closures and massive layoffs. For the time being, the UK Treasury claims that all necessary consultations with the interested parties, including the gambling industry and local charity organisations, were made and then all the evidence was considered before making a final decision.
- Author
Daniel Williams
