Government refuses to rule out FOBT stake reduction
Campaign for Fairer Gambling
The Campaign for Fairer Gambling writes following a parliamentary debate this week on fixed odds betting terminals tabled by Jim Shannon MP.
A Westminster Hall debate took place this week on the subject of Fixed Odds Betting Terminals (FOBTs) in betting shops. The debate was moved by Jim Shannon, the Democratic Unionist Party MP for Stangford in Northern Ireland.
FOBTs are operational in Northern Ireland but have never been legalised there, and the Gambling Commission’s remit does not cover Northern Ireland.
This debate was long overdue and, as Jim Shannon MP said, it “is just the start of a process that will lead to a Private Members Bill calling for a £2 cap on FOBTs.” But before then, a House of Commons debate is likely. The Government denied a separate review of FOBTs late last year and is yet to announce the date of the well overdue review of gambling machines stakes and prizes.
In a lively debate, the vast majority of MPs spoke out against FOBTs, with a few of the usual suspects, the bookmakers’ allies in Parliament, supporting FOBTs.
The allies included Laurence Robertson MP, who claimed that without FOBTs there would be no horse racing. This desperate defence of the status quo has been long refuted by racing aficionados such as Greg Wood, who correctly assert that FOBT losses do not contribute towards the levy that sustains horse racing. Mr Robertson was asked for the evidence that FOBT users bet on racing, and Labour MP Graham Jones pointed out that betting shop clustering is nothing to do with sustaining horse racing.
Carolyn Harris MP, who this week established the All Party Parliamentary Group for FOBTs, highlighted the tragic suicides related to the bookmakers’ £100 a spin machines. Conservative MP, Mark Field acknowledged that local authorities are powerless to prevent the proliferation of betting shops on the high street as they have to “aim to permit” new premises. Mr Field highlighted the inconsistency of Government policy on FOBTs when it implemented a sugar tax and cracked down on smoking.
SNP MP Dr Lisa Cameron then disclosed that she used to treat problem gamblers as a psychiatrist. She said patients described huge losses, and relapses which caused many issues for them including stealing from society and their families. Dr Cameron said FOBTs encourage repetitive behavior and loss chasing, and problem gamblers used to describe “seeing FOBTs everywhere”. Often, a simple trip to go out for some bread and milk would lead to FOBT use. The debt that ensues can cause mental health issues, which impacts the NHS. Dr Cameron said the Lottery is not as addictive as it’s not instantaneous, and she has concerns about the availability and the number of FOBTs as well as the level of stake.
Labour MP Jim McMahon said bookmakers were clustering in the deprived parts of his Oldham West & Royton constituency, and that FOBTs were being used for money laundering. “I’ve just had messages on Twitter from constituents telling me in which betting shops the money laundering is taking place,” he said in response to David Nuttall MP’s ridiculous claim that it cannot be argued FOBTs are being used for money laundering if it is also argued people are losing £300 a minute. “I don’t trust bookmakers one bit, 100 local authorities are not wrong,” concluded Mr McMahon in reference to the Sustainable Communities Act proposal calling for a £2 cap, which the Government has not yet made any progress on.
Labour’s DCMS spokesperson, Clive Efford MP, said of the Association of British Bookmakers’ briefing claiming that problem gambling rates have not increased: “This is an answer to a different question. This sort of propaganda does the industry no justice at all.” He wrongly asserted that there was no evidence stake reduction to £2 a spin would reduce harm, but then claimed that it was not about evidence but location – as a disproportionate amount of revenue comes from those on low incomes.
Mr Efford stated that the Responsible Gambling Trust’s research based around people with accounts threw up some interesting results, such as 37% of players saying they had experienced problems. He said the Gambling Commission had suggested the betting industry increase the number of accounts. “Will the betting industry make account based play mandatory before it is forced on them, and the time is coming for action to be forced on them. The time to apply the precautionary principle and remove the machines is approaching.” Mr Efford then asked when the now long overdue triennial review of stakes and prizes will be.
Standing in for Tracey Crouch MP, the Acting Sport, Tourism and Heritage Minister David Evennett MP responded for the government. “We are looking at the whole issue and will be making strong recommendations in due course. The last triennial review concluded in October 2013, and we will be setting out our views in the near future. The government takes money laundering very seriously, and we are consulting on the bookmakers’ inclusion in the Money Laundering Directive shortly. We acknowledge much more needs to be done.”
A stake reduction to £2 a spin would prevent money laundering, reduce gambling related harm and betting shop clustering. Little surprise, therefore, that it is a proposal supported by 100 local authorities and the vast majority of MPs who took part in the debate.
PoliticsHome Newsletters
Get the inside track on what MPs and Peers are talking about. Sign up to The House's morning email for the latest insight and reaction from Parliamentarians, policy-makers and organisations.
