It’s been a long time coming, but almost surprisingly, the maximum stake for FOTB machines has now really been slashed to only £2.
A long debate
Ultimately, it was Theresa May who supported the reduced stake on FOTB machines. She went with a majority of the Tories, the campaigners against FOTBs and made a somewhat opportunistic move to keep the Commons happy as well and any back benchers, whose support she might need herself in the future.
Chancellor Hammond had wanted a higher stake to be pushed through. The treasury couldn’t rightly campaign to keep the previous £100 maximum stake. Instead they wanted a reduction to £20. Most betting shops and operators had hoped for a similar maximum stake.
Indeed, Betfred announced that they would slash 4,500 jobs on the high streets from their betting shops if the stake would be reduced to a maximum of £2. An unnecessary threat. For now, nobody can truly predict how this reduction will affect betting shops.
Player protection issues
FOTBs are called the ‘crack cocaine’ of gambling and they are highly addictive. But statistics suggest that the betting on FOTB machines has gone down in recent years and that more and more betting shops have been closing already anyway.
Sure, this reduction of the maximum stake will most certain speed the process up. Additionally, the treasury can expect a loss in gambling taxes, 25% of which were earned through FOTBs in betting shops.
But how well are players truly protected by this move? Statistics also suggest that more gamblers display problematic behaviour when it comes to scratch tickets and let’s not forget about the easy availability of online gambling.
The measure to reduce the stake on FOTBs remains woefully incomplete, if players can continue to spend £10 or more on a scratch ticket and £100 on a single spin on a slot machine at an online casino. Granted, depositing more money into your online casino account is a little more involved than rushing to the ATM to grab more cash, but it’s definitely not a huge inconvenience.
Reactions on social media
When the news of the maximum stake was announced, reactions on social media were mixed. Many employees at betting shops actually welcomed the measure, saying how they’ve seen FOTBs destroy lives. Problem gamblers themselves were also happy about the news.
Others called the reduction foolish, considering the loss in revenue, the danger of betting shops being closed and people losing their jobs and the fact that players will simply move online. That is already happening, and mobile gambling is becoming increasingly more popular.
What’s next?
The Government has spoken, and authorities will now have to enforce the measure and ensure that FOTBs really get restricted to a maximum stake of £2. Interestingly, Northern Ireland already announced that they have their hands tied and are unable to enforce the measure. Apparently, the change is only possible under the resolution of an incoming minister. But the current gambling legislations hasn’t changed in Northern Ireland since 1985 and the territory apparently has the highest rate in gambling addiction across the country.
So, clearly, some action is required here.
Many concerned with player protection have called for a widening of the measure, which should include online casinos as well. For now, no legislation seems to be planned here and the UKGC has not commented on this either. It remains to be seen whether maximum stakes on slots at online casinos may be reduced in the future as well.