In April, after a six-month delay, the maximum amount that people can stake on fixed-odds betting terminals (FOBTs) was reduced from £100 to £2. This followed pressure from organisations such as the Campaign for Fairer Gambling, as well as both Labour and Conservative MPs. The former Minister for Sport, Civil Society and Loneliness Tracey Crouch MP has been one of the strongest advocates for reform, leaving her post in November 2018 in protest at the delay in implementing this policy.
Some will view the curbs on gaming machines as unwarranted interference from government. Philip Davies MP wrote an article defending the gambling industry and challenging those who he claimed ‘peddle untruths’ about FOBTs. The Institute of Economic Affairs also warned that reducing the maximum stake to £2 would lead to hundreds of bookmakers closing and thousands of jobs being lost.
It is true that there is likely to be a huge impact on high street bookmakers who rely heavily on gaming machines to stay profitable. Since 2009, annual profits from FOBTs have increased by nearly 75% to £1.82bn. In March, William Hill announced it was closing hundreds of betting shops as a result of the Government’s clampdown.
However, there are credible conservative reasons for taking action. As Iain Duncan-Smith MP noted, there is a strong connection between FOBTs and social problems, including drug and alcohol addiction and family breakdown. The NHS has also identified problem gambling as linked to an increased risk of developing mental health problems such as depression. The Gambling Commission has highlighted the harm caused by FOBTs and recently published a National Strategy to tackle problem gambling, which they estimate affects over 400,000 people.
My own brief experience of working in the gambling industry has convinced me of the need for reform. I was employed for two months as a customer services assistant in 2013 at a high street betting shop in North London. Behind the counter, we watched as players lost hundreds, and sometimes thousands, of pounds. One of the main ways we promoted FOBTs to customers was through a rewards card. If a punter hadn’t been gambling for a while they would receive a text message giving them a free bet to lure them back to the shop. It seems that little has changed. In February, it was reported that staff at Ladbrokes are being incentivised to encourage customers to play FOBTs.
The battle over gambling on Britain’s high streets is just the start of an ongoing war between campaigners and the betting industry. Internet gambling is likely to be the next target. Billions are spent online by UK gamblers every year, with no restrictions on how much can be staked. Whether companies can continue to operate online without further regulation remains to be seen. Given the current support for reform of the industry I wouldn’t bet on it.
David Stephenson is a member of Bright Blue. The views expressed in this article are those of the author, not necessarily those of Bright Blue.