Luck’s out for bookies as bet stakes slashed

money: Warning over job cuts after government slashes amount that can be gambled to just £2

The highest stake on controversial fixedodds betting machines will be slashed to £2 in a move welcomed by campaigners but condemned by bookies amid fears of job losses and shop closures.

The UK Government said it had chosen to “take a stand” by cutting the maximum stake on fixed-odds betting terminals (FOBTs) – dubbed the “crack cocaine” of gambling – from £100 to £2.

Its decision goes further than the recommendations of a review carried out by the gambling regulator, which recommended the maximum stake for FOBTs should be set at or below £30.

MPs across parties joined campaigners in welcoming the decision to crack down on the machines, which can lead to punters placing bets of up to £100 every 20 seconds.

But it comes as a blow to bookmakers, which have warned it would cost betting shop jobs across the country.

The Association of British Bookmakers has predicted more than 4,000 shops could close across the gambling sector, with the loss of 21,000 jobs.

Shares in gambling firms initially fell as the big players estimated the extent of lost revenues and earnings, but the stock losses were later clawed back. Culture Secretary Matt Hancock said: “When faced with the choice of halfway measures or doing everything we can to protect vulnerable people, we have chosen to take a stand.

“These machines are a social blight and prey on some of the most vulnerable in society.”

Bookmaker William Hill warned the “unprecedented” decision could see around 900 of its betting shops become loss-making, with a number of those at risk of closure after the new £2 limit comes into effect.

The group said the stake cut could hit annual earnings by between £70 million and £100m.

It has already recently cautioned that the stake cut could leave it at risk of a foreign takeover.

Ladbrokes owner GVC and Paddy Power also warned over expected hits to their earnings.

But Tracey Crouch, minister for sport and civil society, said: “While we want a healthy gambling industry that contributes to the economy, we also need one that does all it can to protect players.”

Tom Watson, deputy leader of the Labour Party, said: “It’s not often that the Opposition congratulates a government minister, but Tracey Crouch has made the right decision today.”

Campaigner Brian Chappell of Justice for Punters said: “These machines were introduced through the back door onto UK high streets. They’ve been trouble ever since.”

The government has also tasked the Gambling Commission to hold talks with the industry on potential limits on spend and time on other so-called gambling machines in casinos and arcades.

Machines area social blight and prey on some of the most vulnerable in society. CULTURE SECRETARY MATT HANCOCK

PA. Fixed-odds betting machines have been described as the ‘crack cocaine’ of the gambling world.