Fixed odds betting terminals in the news again

The Daily Mail newspaper created a stir in gambling circles over the weekend when it reported that Britain’s Chancellor of the Exchequer, Philip Hammond, has blocked political efforts to reduce the staking limits on fixed odds betting terminals (FOBT) in bookmaker betting shops.

Following intense media and political pressure, Britain’s ministry for Culture, Media and Sports (DCMS) launched a consultation last October into the maximum wagers that should be allowed on gambling machines offering casino-style games, which presently accept bets up to GBP 100.

The DCMS report is not due for presentation until October his year, according to statements issued to parliament earlier in 2017 by DCMS minister Tracey Crouch (see previous reports).

Political and activist groups want the betting maximum drastically lowered to GBP 2, but bookmakers says this would profoundly impact their businesses, leading to shop closures, job losses and a decline in the amount of tax the government harvests from them, said to be around GBP 400 million annually.

Gaming machines in high street betting shops are said to deliver at least half of bookmaker profits.

The Daily Mail report quoted an unidentified government source, who allegedly revealed that Hammond had blocked government moves to lower FOBT staking limits, and had argued that such a move would be “financially crippling” for government tax income.

DCMS minister Tracey Crouch reacted to the report Saturday, commenting on Twitter that the report was “fake news,” but not expanding beyond that.

That was followed Saturday by a DCMS statement which explained that its review into stakes and prizes offered by gambling machines was still underway, and it only expected to publish its conclusions in the autumn.

The UK Finance Ministry, which Hammond heads, declined comment.