New tax won’t stop FOBTs

In today’s Budget, George Osborne announced in increase Gross Profits Tax (GPT) on FOBTs to 25%, which amounts to around £78m in revenue.

However, The Campaign for Fairer Gamblingsaid the tax rise won’t deal with the many issues created by these machines as problem gambling research, education and treatment will not see any of this revenue.

“It will be suggested that this move will slow down the proliferation of betting shops on high streets, but the addictive nature of FOBTs means the bookmakers will still be raking in huge sums,” said Adrian Parkinson, Consultant for the Campaign for Fairer Gambling.

“The Government should be looking at dealing with the root of the problem - the high stakes and high intensity play of FOBTs, rather than tax the losses of those addicted to them.

“We may also see a rise in the aggressive marketing of these products from the bookmakers, who will now be desperately trying to attract even more customers. This increase in tax will not be passed on to the FOBT gambler, so is unlikely to act as a deterrent in any way.

“The government should be focussing instead on the social and economic cost of problem gambling, which far outweighs the revenue generated by FOBTs, even at 25%. But with only one NHS problem gambling clinic in the UK, this seems a long way off.”

Osborne said FOBTs “have proliferated since gambling laws were liberalised almost a decade ago.

“These machines are highly lucrative, and therefore it’s right we now raise the duty on them to 25%. We will also extend the horserace betting levy to bookmakers who are based offshore.”

He also announced he will cut bingo duty from 20% to 10%.