A new study has found that controversial fixed-odds betting terminals (FOBTs) cost local residents an amount of approximately £210 million on an annual basis by creating an increased demand on various public services.
According to the research and analysis carried out by the Centre for Economics and Business Research (CEBR), the fixed-odds betting machines which offer casino-styled games such as roulette and blackjack cost local taxpayers about £116 million in hospital in-patient visits, and mental health services estimated to approximately £32 million.
In addition, the controversial terminals have long been associated with gambling addictions, with problem gambling resulting in further housing costs of £13 million and another £16 million through criminal behaviour. UK FOBTs have also been blamed for costs of about £30 million related to problems at work.
The latest research was initiated by the British Amusement Catering Trade Association (BACTA), the British trade association for the local amusements sector. The study has especially been focused at providing detailed information about the possible negative effects related to the terminals which are also known as B2 category machines. The fixed-odds betting terminals have been blamed for their addictiveness because of the quick-paced gameplay and the large maximum stakes that are still allowed. Currently, FOBTs offer a maximum stake of £100 to be placed every 20 seconds, which could lead to great damage for customers.
Government’s Decision on FOBTs Still to Be Made
Last week, the major gambling regulator in the UK – the UK Gambling Commission (UKGC) – provided its recommendation for the planned Government’s gambling crackdown, which could see the maximum stake allowed at the terminals cut to £2. Since the Commission chose to recommend a fixed-odds betting terminals’ maximum stake reduction to £30, some Members of Parliament shared their disappointment with the industry regulator.
The good news for the anti-FOBTs campaigners is that the Government is not obliged to take into account the recommendation of the UKGC, despite the fact that it would be strange not to act accordingly to its major advisor. Previously, the Government has made a commitment to reduce the maximum stake allowed at the machines to a value in the range from £2 to £50, but no final decision on the matter has been announced.
According to the trade association for the UK amusements sector, the maximum stake on the machines had to be reduced to £2 in order for public services to be protected. As reported by The Independent, BACTA’s Chief Executive John White commented that the UK Government needed to act with determination to make sure that progress was being made in terms of tackling gambling addiction caused by the terminals. As Mr. White said, cutting the existing machines’ stakes was the only way to remove the most obvious gambling-related harm associated with the fixed-odds betting terminals.
Local bookmakers, on the other hand, have protested against the Government’s plans to impose new restrictions on the industry and to cut the FOBTs stakes to £2, saying that such a large reduction would represent a massive blow for them, projecting revenue losses and staff lay-offs if such a decision is made.
- Author
Daniel Williams
