Legislation

UK – Gambling Commission’s FOBT recommendations go further than £2 stake cut

By Phil - 19 March 2018

As well as limiting FOBTs to a stake of £2 the UK Gambling Commission has said it wants to see a raft of changes introduced to help identify problem gambling and to stop it migrating onto other types of gambling machines.

It does not consider that a stake cut alone on B2s (irrespective of the level) would go far enough to address the risk of harm fully though. “We consider that it is necessary to recommend a package of measures to address harm. This package would not just address the risk of financial harm from B2 machines. It would also minimise the risk of diverting problematic play onto other machines or other forms of gambling, and would help to identify the range of indicators of problem gambling at a much earlier stage.”

It said there was a strong case to make tracked play mandatory across machines categories (B1,B2,B3) and that it wanted to extend to category B1 and B3 machines the kinds of protections, such as player limits, that are in place on FOBT (B2 machines). It wants to work with the industry and others on steps to make limit-setting more effective, which could include ending sessions when consumers reach time and money limits.

As well as the recommendation that the FOBT (B2) slots stakes should be limited to £2, the Commission has said that the stake limit for FOBT (B2) non-slot games (which includes roulette) should be set at or below £30 if it is to have a significant effect on the potential for players to lose large amounts of money in a short space of time. It wants to ban the facility for machines to allow different categories of games to be played in a single session.

The Commission said: “We think that there is a case for a £2 maximum stake for B2 slots, which was one of the options on which DCMS consulted. Drawing on data from 20 billion plays on B2 machines, we have looked at consumer losses as an indicator of the risk of gambling-related harm. Our analysis shows that, compared with non-slots players, slots players experience a greaterproportion of significant losses. This reflects the particular risks associated with slots, which offer a lower return than non-slots games and less opportunity for players to manage their own risks through the way they play. In our view, the risks associated with this product outweigh the other factors described in paragraph 5 above. This is particularly the case when consumers will continue to have the option to play slots as a category B3 game in the same premises.”

For all other B2 games, the Commission said it agreed with RGSB that there is a precautionary case for a stake cut below £50, which is now the effective limit for most players.

“We think the maximum stake should be materially lower than £50. In our view, a precautionary approach should involve a stake limit at or below £30 if it is to have a significant effect on the potential for players to lose large amounts of money in a short space of time. The chosen level will depend on the weight that Ministers attach to risk of harm, implications for the way different products are regulated, consumer choice, and public and stakeholder opinion,” it said.

It is up to Government whether to implement the Commission’s recommendations which have been provided through a letter to the Secretary of State for Digital, Culture, Media and Sport.

Gambling Commission Chief Executive Neil McArthur said: “We’ve put consumers at the heart of our advice – advice which is based on the best available evidence and is focussed on reducing the risk of gambling-related harm. In our judgement, a stake cut for Fixed Odds Betting Terminals alone doesn’t go far enough to protect vulnerable people. That is why we have recommended a stake cut plus a comprehensive package of other measures to protect consumers. We have proposed actions that will tackle both the risk of harm and provide solutions that are sustainable in the longer term.”