The decision whether to lower the maximum stake on fixed-odds betting terminals (FOBTs) in the United Kingdom has been delayed yet again, this time due to infighting “at the top of government.”
Members of the Parliament were expected to announce the UK government’s decision to enforce a reduced limit on FOBT wagering levels before the month of April ended, but Daily Mail reported on Monday that the crackdown has been put off until after the local elections have been held in the beginning of May because of conflicts among some members of the government.
Chancellor Philip Hammond was “responsible for the hold-up,” sources told the UK news outlet.
Hammond, a member of the British Conservative Party, has been reportedly rebuffing the proposal to impose a £2 maximum stake on grounds that the government may stand to lose “hundreds of millions in gambling tax revenues.” The proposed limit would be a huge drop from the current £100 per spin limit.
Hammond has been a known ally of the gambling industry on the FOBT issue, until September 2017, when the chancellor announced that the government has initiated a review on the betting terminals although it’s worth noting that Hammond warned that slashing the stake limit to £2 could result in a £400 million gap in the state coffers.
The UK Gambling Commission (UKGC) has already rejected the £2 limit in March, and instead is pushing for a £30 or less maximum stake along with a list of “measures to combat the risk of harm.” In its recommendation, the gambling regulator noted that there has been insufficient evidence to justify a decision “recommending a specific figure below £30.”
The British Horseracing Authority (BHA) has urged the government to think hard before making a decision on the FOBT wagering limit, pointing out that a drastic FOBT stake cut could prove disastrous to racing, whose financial health is largely dependent on the betting industry. BHA executive director Will Lambe earlier told the government’s FOBT consultation that “any measures which severely compromise the sport’s financial stability would have unintended consequences to British racing and the wider rural community.”
Meanwhile, operators like Ladbrokes Coral also warned of possible “severe stake cut” in its sponsorship budget. Ladbrokes spends £8 million yearly on sporting event sponsorships, almost £3.5 million of which is dedicated to horse racing, in addition to the betting giant’s Rugby Football League Challenge Cup and the Scottish Professional Football League sponsorships. Ladbrokes also has partnerships with snooker and darts.
Bookmaker William Hill has also announced that it’s also considering revising its sponsorship agenda in the event that the legislation on FOBTs is changed, noting that its £1 million horse racing sponsorship may be “at risk” if the FOBT’s maximum stake is set too low.
