UK bookmakers want to prevent £2 FOBTs’ limit
Several betting firms sent a letter to the Culture Secretary in order to prevent the £2 imposition.
UK.- 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 fixed-odds betting terminals (FOBTs). The firms believe that reducing the top stake would be catastrophic.
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 Association of British Bookmakers is reportedly seeking talks with Hancock as well, BBC said. The Department for Digital, Culture, Media and Sport (DCMS) is currently leading a review into the machines, and the Treasury is expected to back the reduction. Media reports last week said that Chancellor Philip Hammond had the intention of reducing the highest amount people can bet from £100 a spin to £2.
“As the chief executives of UK retail betting shops we would like to express our alarm, that according to media reports, the government has determined that the maximum stake on betting shop gaming machines should be reduced from £100 to the lowest possible level of £2,” ,said the gambling executives.
While they said that they acknowledge that the government has a commitment to reducing the maximum stake, they believe that it should be a proportionate response and consistent with the evidence. “For the avoidance of any doubt, we believe a £2 maximum stake is a disproportionate response and will be catastrophic for retail betting in the UK, with widespread consequences for people’s livelihoods and the wider economy.”
The executives said in the letter that a KPMG analysis estimates that a £2 stake would result in 21,000 direct job losses, and half of 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.
The Treasury said that it is “fully supportive of DCMS’ work to ensure the local gambling regime continues to balance the needs of vulnerable people, consumers who gamble responsibly and those who work in this sector.” Earlier this year, the UK Gambling Commission (UKGC) also recommended that the maximum stake for FOBTs should be cut to £30 or less.
