UK Gambling Commission makes recommendations on FOBTs

Speculative reports earlier Monday that the UK Gambling Commission would make its recommendations on gambling and FOBTs public were confirmed later in the morning, proving the earlier reports accurate.

The recommendation that FOBT maximum stakes be cut from GBP 100 to GBP 30 or less is being seen by most observers as a generally positive step for bookmakers, who feared that action group and political calls for a destructive cut to just GBP 2 are a possibility.

Shares in William Hill and Ladbrokes Coral rose around 4 percent on the news, confirming these observations.

However, Gambling Commission chief executive Neil McArthur said:

“In our judgment, a stake cut for fixed odds betting terminals alone doesn’t go far enough to protect vulnerable people. That is why we have recommended a stake cut plus a comprehensive package of other measures to protect consumers.

“We have proposed actions that will tackle both the risk of harm and provide solutions that are sustainable in the longer term.”

The opposition clearly was less than enthusiastic about the Commission’s recommendation, with a spokesperson for Fairer Gambling, which has been campaigning for a blanket reduction in all B2 stakes to GBP 2 taking the “or less” part of the GBP 30 recommendation as the salient point, saying:

“The Gambling Commission is giving the government free rein to determine an appropriate stake. We are confident that when the evidence has been reviewed, GBP 2 a spin will be considered the most appropriate level.”

The generally anti-gambling newspaper The Guardian reports that DCMS minister Matt Hancock remains open to the idea of a drastic cut to GBP 2, but is “facing pressure for a softer option from the Treasury”.

All parties continue to await the government’s final decision.