New Fobt Limits
An investigation by the Guardian just two days after the introduction of new £2 limit on fixed-odds betting terminals (FOBT) has accused bookmakers of bypassing the new rules.
The new guidelines offer seven different options for CRC screening, including colonoscopy, flexible sigmoidoscopy, CT colonography (all of which require prep, although the CT colonography test is said to be less invasive) as well as the fecal occult blood test, the fecal immunochemical test (or FIT), and the multi-targeted stool DNA test. From April the 2 nd 2015 new gaming regulation comes into place in an attempt to limit excessive betting on the Fixed Odds Betting Terminals (FOBT’s). The law will prevent bets in excess of £50 from been placed directly on the betting terminals, more commonly known as Roulette Machines or FOTB’s. New limits on FOBT gambling machines could shut third of outlets Industry warns over cutting of maximum stake from £100 to £2 on Monday A third of the 8,500 high street betting shops are at risk.
Major UK bookmakers have introduced new games on the same day as the new FOBT stake rules. © Pixabay.
The investigation found that high-stakes terminal games have been launched in the retail outlets of numerous bookmakers in the UK, all with maximum stakes much higher than the new £2 limit. The issue has been forwarded to the Gambling Commission who have launched their own investigation.
The Gambling Commission wrote to operators on Monday to warn them about conforming with the rules and to remind them of their duty of protecting consumers.
However, the Guardian found Betfred and Paddy Power have launched roulette-style games where customers bet on the outcome of a virtual event. Betfred’s “Virtual Cycling” game has a stake limit of £500, five times higher than the previous FOBT limit.
Paddy Power have introduced a game called “Pick n 36” with a £100 stake limit. In both games, players bet on a number between 1 and 36, in much the same way as roulette.
Ministers and campaigners have expressed outrage at the news. Shadow culture minister, Tom Watson, one of the most prominent campaigners against FOBTs, said:
These new games seem like FOBTs by the back door and look like a pretty disgraceful example of bad faith by the bookmakers involved. 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.– Tom Watson, Shadow culture minister.
However, while Watson may have a point that the games are not in the spirit of the ban, they seem to technically be legal. Customers bet at the counter and on a slip of paper, not directly via the machine. The event is then played out virtually on the machine.
FOBT stakes were cut with the goal of reducing gambling-related harm, something that campaigners argue these new machines will cause. The Gambling Commission will be monitoring the situation, as Helen Vinn, executive director at the Commission said:
We are aware of these products and we are investigating. We have been extremely clear about our expectations in relation to how operators should implement the stake reduction. This is why we have been monitoring developments closely and last week we wrote to operators to remind them of their responsibilities to ensure consumers are protected. Where we see businesses failing to act responsibly in response to the stake reduction we will not hesitate to step in.– Helen Vinn, UK Gambling Commission executive director.
While the numbers seem far too good to be convincing, CEBR noted that there were a lot of factors considered before they came up with the data. CEBR took into account about £210 million that can be offset by the £2 maximum stake since it would eliminate fiscal costs of problem gambling that emanate from FOBT abuse.
If the new maximum stake helps lessen problem gamblers, it would also indirectly contribute to the lessening of the cost that is directed to help problem gamblers alleviate their impacts on welfare services, housing, work and criminality. They also noted that there could be an overall benefit to the economy, with as much as £45 million net increase in gross value added (GVA).
In a statement, Oliver Hogan, director and chief economist of CEBR, said
The policy would not be nearly as detrimental to the LBOs. There could even be a net boost to the economy and to employment if there is attrition from gambling and if the fall in demand for B2 leads to higher demand for more labour-intensive forms of gambling
The report was not well-received by all parties who have interests and stakes on the maximum bid action. The Association of British Bookmakers said that the report was flawed, and was funded by people who had no reliable access to data from the gaming industry and stood to gain from the implementation of the £2 maximum stake.
New Fobt Limits Rules
According to a spokesperson of the association, the Treasury believes that in a worst case scenario, an £8.5 billion blow could be dealt to the UK’s economy, once the new maximum stakes are implemented. The spokesperson also cited an independent accounting firm that predicted over 21,000 jobs could be lost and 4,500 UK betting shops could close which would result in a £1.1 billion decline in Treasury income.
New Fobt Limits Test
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