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UK Government Cuts Maximum FOBTs Stake to £2
By Ivan Potocki May 21, 2018 LegalityThe maximum stake for FOBTs will be reduced to £2 from £100, which could have far-reaching consequences for the UK bookmakers who make a bulk of their income from these machines, leading to shop closures and job losses.The fate of controversial Fixed Odds Betting Terminals (FOBTs) in the UK has been hanging in the balance for some time now, with the bookies anxiously awaiting the government's decision about the reduction of the maximum stake on these machines. The word is finally in and the least favorable scenario for the bookies has to come pass, as lawmakers decided to go for the maximum cut, reducing stakes to just £2 from previous £100.
Government Taking the Stand
Fixed Odds Betting Terminals are seen by many in the UK as one of the biggest blights of the society, with approximated 14% of problem gamblers using FOBTs on a regular basis. The government took more than a year to come up with the final decision after the plans to reduce the maximum stake had been introduced and eventually decided to go with the huge cut.
By reducing the maximum stake to just £2, lawmakers are taking the stand and sending out the message they are dedicated to protecting the most vulnerable members of the society, i.e. those who can't help their gambling urges.
Far Reaching Implications
When the proposal was first brought forward, High Street bookies came out with their own counter-arguments since FOBTs make up for a majority of their overall revenue. They warned the government that a significant cut in the maximum stake could have far-reaching consequences, leading to many shops having to close down, causing many people to lose their jobs.
In light of these facts, bookies were hoping for a middle-ground solution, where the cut wouldn't be so steep but it seems the government doesn't see things the same way.
According to the Association of British Bookmakers, some 4,000 shops could close down due to this decision, leading to more than 20,000 people losing their jobs. At the same time, many politicians and community representatives across the UK have welcomed the decision and described the industry's estimates about job losses and shop closures as exaggerated.
Bookies Divided
Although there is no doubt the latest decision will have a huge impact on bookmakers, they don’t share a common stance on the issue. On one hand, William Hill came out saying they will probably have to close down around 900 shops, while Betfred has announced they are considering a court action to get the decision overturned.
At the same time, Paddy Power Betfair, one of the most recognizable brands in the UK and Ireland, has welcomed the decision, stating FOBTs have seriously damaged the industry’s reputation and it was high time to go back to the roots.
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