Paddy Power Co-Founder and former Chief Executive Stewart Kenny has secretly lobbied against the legalization of fixed-odds betting terminals in the Republic of Ireland, according to a Times report.
Kenny co-founded the major gambling operator back in 1988 and served as its CEO from May 1988 until mid-2002. He then remained a Board member until August 2016, when he resigned after spending almost three decades at the company.
The potential legalization of FOBTs was dwelt upon by the Irish government in 2009. As The Times claims in a report from earlier today, Mr. Kenny submitted an opinion piece to Ireland’s top officials, arguing that the gaming devices in question were more attractive to customers and therefore more addictive than other gambling products offered in betting shops.
The former Paddy Power executive further elaborated that FOBTs’ addictiveness came from the fact that they allowed players to re-bet their winnings almost instantly without having much time to give their actions a thought. The devices’ colorful interface, movement and dynamics, and sounds also encouraged gambling customers into compulsive gambling, in Mr. Kenny’s words.
In his submission to the Irish government, the Paddy Power Co-Founder noted that the country needed to learn a lesson from the UK where politicians had grown just as addicted to the controversial machines as players. Since introduced in the early 2000s, FOBTs have become extremely popular in the UK, generating millions of pounds in tax revenue.
According to Mr. Kenny, the machines were really hard to curb and regulate as UK officials were not ready to part with the large revenue share these had contributed over the years.
The Irish government did not legalize FOBTs eventually, probably influenced by the former Paddy Power CEO’s submission and the fact that an industry representative spoke so ill of the gaming devices.
The Times’ report was published only a day after the UK Government’s consultation period on FOBTs and other gaming machines closed. Over the past several years, lobbyists have actively urged for amendments in the existing regulations governing the operation of FOBTs across betting shops. Currently, the machines accept bets of up to £100 every 20 seconds, which makes them particularly alluring to players. According to many, the maximum stakes will be reduced significantly, although it is yet to be understood how much exactly, if there are any changes in laws at all.
