Every week I publish my very own Kev’s column online. This week I take a look at the debate around Fixed Odds Betting Machines.
There was a time when gambling was something that it was felt best to hide away to prevent temptation could lure people to lose money they could ill afford.
When off-track bookmaking was legalised in 1961, Betting Shops operated under fairly strict controls. They were forced to have obscured windows that meant you could not see inside. Advertising on television was banned and a tax on each bet meant you had to decide just how confident you were of your horse coming home when you placed the cash.
The traditional worry about gambling was of a husband sneaking off to the bookmakers with his wage packet before essential bills had been paid in the belief that this next bet could be “the one”. In an episode of Fawlty Towers, the Major gives Basil a tip and advises him it is so good he should pay the tax on the bet, not on the winnings. Needless to say he does not want Sybil finding out what he is up to.
Yet the technological changes of the 1990’s which saw on-line gambling services develop, plus the major deregulation of the industry by the last Labour Government, have swept this image of gambling to one side. Rather than being hidden away adverts for betting services are now a dominant feature of virtually all ad breaks during sports matches, shops have proliferated and any smartphone can become a mobile casino.
Rather than just betting on the outcome a massive range of options are available, including being able to lay a bet (Bet on defeat) that in the past was only available to bookmakers themselves, plus a range of in play markets. All the advertising designed to encourage a punter to think that it “matters more” if a bet is on, even though many fans at Plainmoor will be as passionate without ever putting a bet on.
Yet what has attracted the most attention recently is the position of Fixed Odds Betting Terminals. These are machines which mainly base their offer on popular Casino Games, but unlike the Casino have fixed odds of how much will be paid out, a maximum prize and can be played far more quickly and repetitively than the real thing. Stakes can be up to £100 and be wagered every 20 seconds. It is possible to lose thousands of pounds in minutes.
When these machines were first legalised in the 1990’s there was a limit placed on the number each betting shop can have. Yet in response some chains now have multiple stores in an area, each with the maximum number of these machines. It has been reported that there are now 33,284 of these machines in the UK and at an average weekly profit of £825 in 2012 it is easy to see why their numbers are rising.
What has made these machines particularly controversial is that it appears there are more in areas where the average income is lower, than in communities were incomes are higher. This, combined with an addictive style of play and the profits listed above, raises real questions about imposing further controls.
Whilst I welcome the fact that the debate about these machines is being had there is more than just a whiff of hypocrisy that the Labour Party, which legalised these machines, is now trying to blame the current government for their impact. In my view the Government is right to review these machines and insist the industry presents a much firmer set of rules. The plans to legislate on the on line gaming industry gives an opportunity for further restrictions, a logical one would be limiting the number of these machines a business can have in a set area, not just one shop, to prevent clustering.
Torbay was right a decade ago not to make the mistake Blackpool did and think that liberalised gambling laws, with the potential for US style super casinos, would be a one way bet to prosperity. Whilst individuals must take responsibility for their decision to gamble, it is a proper role of the state to ensure that the methods on offer do not draw the inexperienced in to be drained dry in minutes or offer prizes that look good, but are far outweighed by the losses made.
I have placed a few bets in my time, mostly on soccer matches or the odd £10 on the Grand National and played the odd slot machine in the pub with some lose change. Yet it is safe to say I would never use a Fixed Odds Betting Terminal. Yes, they might offer what appears to be a big prize, but they are a one way bet that means the house always wins.
I would not ban something merely because I do not want to use it, but it is time consumers are protected by being given very clear information. Not just about how these machines work, but the amount of money they make. Ensuring any choice to use them is informed.
If you saw a sign next to a machine saying on average it made £825 profit a week for its owner would you gamble on it? It’s a bet not worth having.