Decision due as skewed regulation on gambling no longer makes sense

MONTHS of deliberations over fixed odds betting terminals (FOBTS) are due to come to an end with reports suggesting the Government could announce a decision about their future on Thursday.

The voracious machines which accept stakes of up to £100 a time, and accept fresh bets every 20 seconds, have been described as the crack cocaine of gambling. Following a consultation the Department for Culture Media and Sport is to cut the maximum allowed for a single bet, but by how much?

A broad coalition of MPS, gambling concern charities and campaigners is calling for the limit on a single stake to be slashed to £2. But it is not yet clear whether the Government will adopt this limit or something less bold. There was disappointment when the Gambling Commission merely recommended reducing the limit to £30 or below.

I’m struck by the comparison between this issue and that of fundraising lotteries such as the Health Lottery or the People’s Postcode Lottery.

Those behind successful fundraising lotteries have sought reform of rules which place caps on how much they can raise. At present the Gambling Act places a host of limits on the business of such lotteries.

Their annual income is limited (to £10 million) and the cash value of the prizes they can offer is restricted. They cannot sell tickets worth more than

£4 million for any individual draw.

The Hospice Lotteries Association, the Institute of Fundraising and the Lotteries Council all recently wrote to ministers pointing out that nothing has yet been done, three years after the Culture media and Sport Select Committee said the law should be updated.

There are valid concerns about so-called society lotteries. Some dislike the idea of lotteries altogether, seeing them, including the National Lottery as a tax on the poor. Others object to commercially operated lotteries, which are required to give as little as 20 per cent of the ticket price to charity. They fear giving them more freedom could damage National Lottery ticket sales

But for many charities, such lotteries are a valuable source of funds and unrestricted funding, allowing them more flexibility to plan without money necessarily being tied to specific projects.

The Select Committee’s recommendations included a number of safeguards and restrictions to ensure the maximum social benefit such as limiting the percentage of ticket income which such lotteries allocate to management costs.

It does seem extraordinary that the Government is continuing to make it difficult for society lotteries to raise as much as possible, while dragging its feet over restricting FOBTS.

While society lotteries are limited by a £10m annual income ceiling, the cash-hungry gambling machines brought bookies an estimated £1.8 billion last year, and the industry has been lobbying hard against any restriction a £2 stake limit.

The Treasury claims a 15 per cent consumption tax on any profits of course. But that can’t be influencing a decision can it? Perhaps this week we’ll find out.