Maximum stake for FOBTs likely to be cut to £2 in the UK
UK Sports Minister is expected to announce the decision that would cut FOBTs’ maximum stake later this month.
UK.- Tracey Crouch, Sports Minister of the UK, has reportedly made the decision to reduce the maximum stake on fixed-odds betting terminals (FOBTs) from £100 to £2, ignoring the UK Gambling Commission (UKGC) recommendation to allow £30 bets.
While Crouch had already said that the maximum stake would be reduced, it wasn’t clear if they would fo for the lowest stake possible. A Whitehall source told The Mirror: “We’re going for the £2 option. No question about it. And you can tell your readers that.”
The proposal to cut FOBTs’ maximum stake has been one of the pillars of Crouch’s campaign before she joined the government. While former PM David Cameron shelved her plans, Theresa May gave her the green light to move forward with the initiative.
Campaigning Labour MP Carolyn Harris said: “This is fantastic news. I’ve seen the devastating impact these machines can have, and the blight they cause to communities. I’m proud of everyone who has worked on this campaign and want to thank the Sunday People for standing shoulder-to-shoulder with us all the way.”
The £2 limit backed by 93 local authorities, the Royal Society for Public Health and the Church of England’s General Synod is expected to help protect vulnerable people from major losses, but industry experts consider the amount too low, making the machines practically unplayable.
Last week, executives from different leading UK betting firms have sent a letter to Culture Secretary Matt Hancock in an attempt to prevent the £2 stake limit on FOBTs. William Hill, Betfred, Scotbet, GVC and Jenningsbet said that a £2 limit would have a “catastrophic impact on jobs and the economy,” and they called on the Culture Secretary to not sacrifice betting shops. “A maximum stake of £2 on FOBTs is a de facto ban on the machines as the games are not feasible at that level,” they said.
The executives said in the letter that a KPMG analysis estimates that a £2 stake would result in 21,000 direct job losses and that half the betting shops would close. That would also result in an HM Treasury loss of £1.1 billion over the next three years, a £45 million loss to local authorities and £50 million to the British Racing every year. Earlier this year, the UK Gambling Commission (UKGC) also recommended that the maximum stake for FOBTs should be cut to £30 or less.
