DCMS consults on cutting maximum stakes for fixed odds betting terminals

The Government is to consult on reducing the maximum stakes on B2 gaming machines – also known as Fixed Odds Betting Terminals (FOBT) – to between £2 and £50, down from £100.

The Department for Culture, Media and Sport said it had also asked the Gambling Commission for more information about how better tracking and monitoring of play on FOBTs can help with interventions to protect players and also if spin speed on games such as roulette should be examined.

However, in the consultation, which can be viewed here, the DCMS has ruled out the introduction of cumulative impact assessments to aid local authorities in tackling the clustering of betting shops.

Sir Robin Wales, Mayor of Newham and a longstanding advocate for reducing maximum stakes on FOBTs to £2, accused the Government of “dragging its feet”.

The DCMS has also unveiled a package of measures aimed at strengthening protections around online gambling. These include:

• A Gambling Commission consultation on changes to the Licence Conditions and Codes of Practice next year, “with the aim of raising standards on player protection online and [setting] out expectations to the industry around customer interaction online”.
• A new two-year responsible gambling campaign put together by GambleAware, the Advertising Association, broadcasters and gambling industry groups. The £5-7m campaign will be funded by gambling operators, including online-only betting firms.
• New advertising guidelines drawn up by the Committees of Advertising Practice to help protect those at risk of problem gambling and children and young people “by ensuring that the content of gambling adverts does not encourage impulsive or socially irresponsible gambling”.
• A strengthening of the Industry Group for Responsible Gambling’s code on responsible gambling advertising to require operators to ensure gambling content and channels cannot be accessed by under-18s via social media.
• A demand for gambling operators to step up on funding for research, education and treatment. “If not, government will consider other options, including introducing a mandatory levy on gambling operators.”

Regarding the stakes and prizes of other gaming machines, the Government has recommended maintaining current stakes, apart from on prize bingo gaming where it is said to be “content” with industry proposals to increase takes from £1 to £2 and prizes from £70 to £100.

In the consultation the DCMS rejected a call made by the Local Government Association and a number of local authorities for the introduction of local community impact assessments for gambling premises, which the LGA and others said might be an effective tool for preventing further clustering, specifically of betting shops.

“We are keen to support LAs (in England and Wales) and Licensing Boards (in Scotland) in their management of gambling at a local level, but we believe that their objectives can be achieved using existing powers,” the Department said.

“Specifically, LAs can already set out the same assessment of the risk in a given location under their licensing statement of policy. The Gambling Commission advise that the implementation of this tool varies from one LA to another, but where it is used effectively and updated regularly, for example in Westminster Council, it can be an effective tool at rejecting licence applications or imposing conditions on new licences, as would be the case with the introduction of CIAs.”

The DCMS also suggested that where an increase in the number of betting shops is considered to be a local issue, “having an up-to-date, relevant local plan policy in place will support the local planning authority in the determination of any applications for planning permission”.

It added: “The National Planning Policy Framework provides the framework within which local planning authorities and their communities can produce their own distinctive local plan which reflects the specific needs and priorities of their area.”

Launching the consultation, Gambling Minister Tracey Crouch said: “It is vital that we strike the right balance between socially responsible growth and protecting the most vulnerable, including children, from gambling-related harm.

“Given the strong evidence and public concerns about the risks of high stakes gaming machines on the high street, we are convinced of the need for action. That is why today we have set out a package of proposals to ensure all consumers and wider communities are protected.

“We have seen online gambling grow rapidly and we need to protect players in this space, while also making sure those experiencing harm relating to gambling receive the help they need.”

Newham Council described the DCMS' move as “an unnecessary delay, and one which the country cannot afford”.

A submission by the council under the Sustainable Communities Act, calling for the stakes on FOBTs to be reduced to £2, had previously been supported by 92 local authorities.

Responding to the DCMS announcement, Sir Robin said: “The case we and 92 other local authorities have made for a stake reduction of £2 is irrefutable.

“£20 million a year lost on these machines [in Newham] - it is a huge price that some of our poorest and most vulnerable residents are paying because of this Government’s continued inaction.

“Our residents cannot afford any further delay. The Government must act decisively and reduce the maximum stakes on FOBT machines to £2. Only a stake reduction of £2 will provide protection for our residents and promote responsible gambling.”

He added: “If the maximum stake level is set at anything over £2, it will show that the Treasury is putting exchequer profits before people.

“For this Government to show it is genuinely committed to ‘tackling burning injustices’, it must reduce the stakes to £2 and tackle these ‘crack cocaine’ betting machines once and for all.”

Cllr Simon Blackburn, Chair of the LGA’s Safer and Stronger Communities Board, said: “It's extremely positive that Government is committed to the review and looks set to substantially reduce FOBT stakes, but we are pushing for the final outcome to be £2, which is what the LGA has long-called for, to help protect vulnerable people from harm. 

“Not only are £100 maximum stakes significantly out of line with maximum amount that can be waged on other gaming machines, but there is credible evidence that these machines may be particularly addictive and can harm vulnerable players – for example, through spiralling debt – as well as being linked to anti-social behaviour and crime in betting shops.

“However, regulating gaming machines is about more than just stakes, and we urge government to give councils powers to prevent the opening of new betting shops in areas where there are already multiple premises. A new cumulative impact test would give councils the power to veto new bookmakers’ in areas already saturated by betting shops.”

Cllr Blackburn insisted that councils were not anti-gambling but said a greater balance was needed between commercial freedom and the impact on local communities.