“We want to ensure that we have the right balance between a sector that can grow and contribute to the economy and one that is socially responsible and doing all it should to protect consumers and communities,” stated Crouch.
The government wants to reduce the potential for large losses on FOBT (category B2) machines and the risk of harm to both the player and wider communities. Following analysis of consultation responses and advice from the Gambling Commission, the government believes that a cut to £2 will best achieve this.
According to press speculation, the fallout of the government’s cut in FOBTs will hit British bookmakers for more than £200m in profits.
William Hill, the big bookie, has estimated that the decision will hit profits between £70m and £100m. GVC has put the potential loss from its profits at £120m and Paddy Power £22m. The UK Treasury will lose £1bn in taxes from the FOBTs, but is planning to increase the 15% tax on online gambling, possibly to 20%.
There has been no precise date for the imposition of the new £2 stake. In a radio interview Minister Tracey Crouch indicated that it would be "some time next year," but most newspapers are suggesting that it would be in 2020, giving the bookmakers time to run down or reorganise their estates.
DCMS Secretary of State Matt Hancock also said:
“When faced with the choice of halfway measures or doing everything we can to protect vulnerable people, we have chosen to take a stand. These machines are a social blight and prey on some of the most vulnerable in society, and we are determined to put a stop to it and build a fairer society for all.”
Minister for Sport and Civil Society Tracey Crouch commented:
“Problem gambling can devastate individuals’ lives, families and communities. It is right that we take decisive action now to ensure a responsible gambling industry that protects the most vulnerable in our society. By reducing FOBT stakes to £2 we can help stop extreme losses by those who can least afford it.”
Changes to the stake will be through secondary legislation. The move will need parliamentary approval and we will also engage with the gambling industry to ensure it is given sufficient time to implement and complete the technological changes.
Source: GMB / Gov.uk
