Tougher times may be coming for UK-facing gambling operators as the government launched on Monday a probe into Fixed Odds Betting Terminals and the impact they have on players as part of an effort to curb gambling-related harm.
The review will be particularly focused on the maximum stakes the B2 gaming machines (as they are formally referred to as under the Gambling Act 2005) accept and the maximum payouts they grant. Their allocation in licensed venues will also fall under scrutiny. Last but not least, the government said that it will be looking into the social responsibility measures adopted by anyone involved in the UK gambling industry.
It was also confirmed that officials will pay special attention to gambling advertising in their industry review. The government wants to understand whether gambling products and services are promoted in a manner that ensures the vulnerable portion of the population is well-protected.
As reported earlier this month, UK gambling operators may face a full daytime ban on TV advertising, if officials find this fit. Currently, gaming and sports betting products and services are advertised on television after the 9 pm watershed. Any advertising activity prior to that hour is allowed only for bingo products and during major sports events’ breaks.
Fixed odds betting terminals were introduced across UK betting shops in the early 2000s. Essentially, they provide gambling customers with the opportunity to bet on the outcome of different games. Since their introduction, they have turned into major revenue contributors for high street gambling operators due to their wide popularity among players.
The amount of £1.7 billion was lost on FOBTs in 2015, an all-time record. The B2 gaming devices allow players to place maximum bets of £100 every 20 seconds. As a result, a gambling customer may lose hundreds and thousands of pounds within a very short period of time.
Top UK officials have been voicing concerns over the harm that may be caused to vulnerable players, referring to the gaming devices as highly addictive ones. Proposals have previously emerged that the maximum stake be reduced from £100 to just £2. It is still too early to say whether such a major reduction will be agreed upon but reports from the past several months have been indicating that measures will likely be taken in that direction.
The FOBTs review was launched with a Call for Evidence published by Parliamentary Under Secretary of State for Sport, Tourism and Heritage, Tracey Crouch. Providing her comments on the probe, Ms. Crouch said that gambling regulations need to make sure that consumers are protected, that they gamble in a responsible manner, and that the gambling industry is not prevented from contributing to the overall economy. It all comes to striking the right balance, as put by the official.
The Call for Evidence period began on Monday, October 24, and will continue through December 4. Officials aim at collecting enough evidence to assess the existing gambling regulations and whether those should be amended in any way.
