UKGC Recommends Cut To Max Stakes On Casino Gaming
The UKGC or the UK Gambling Commission released their government recommendations. They have discarded the notion of cutting the maximum stakes for the gaming machines at UK casinos to £2. This news brought hope to bookmakers who feared the potential cut would significantly impact their profits. Neil McArthur is the Chief Executive of the Gambling Commission. He stated their advice reflected the needs of the consumers and reduced the risks of harm from gambling. He does not believe vulnerable people can be protected with just cutting Fixed Odds Betting Terminals. His recommendation is a comprehensive package designed to protect the consumers.
The decision of the government is expected during the next few months and is not completely reliant on UKGC recommendations. There is still lobbying by campaigners wanting the stakes to be cut. Tom Watson is the Labour Party’s Deputy Leader. He posted a critical statement on Facebook saying the reduction recommended by the Gambling Commission is not nearly enough. He accused the Commission of passing the buck to the ministers. He believes decisive action is required to tackle the gambling addiction hidden within the country. He stated slower spin times and reduced stakes on casino games are necessary.
Tom Watson added it is his hope the right actions are taken but fears the Commission will give in to the betting industry’s powerful lobbying due to the yearly generation of £1.8bn. The recommendations of the UKGC will provide leverage for the government to limit the stakes to £2. This would minimize the damage to the various industries and bookmakers due to the new regulations.
The stance of the Association of British Bookmakers has been reinstated. They believe the proposed reform would drastically impact retail bookmakers and cause the closures of 4,500 betting shops. This would eliminate 21,000 jobs and the HM Treasury would lose £1.1 billion in taxes by 2020. If the advice provided by the UKGC is taken by the government, the £30 stakes would cause less turbulence for the sector of gambling. The result would be the loss of 10,000 jobs and 2,100 shop closures. The treasury would then lose £260 million.
The UKGC suggestions caused the ABB to reveal they are considering the recommendations and extensive advice of the Gambling commission. They stated they understood the concern of the public and said there would be a cut to the stakes so the losses in betting shops and on machine could be reduced. The Commission spoke of numerous gambling measures that would benefit the gambling problems currently being experienced. They have not yet made a final decision but are committed to implementing measure to address the gambling issues. They plan to continue working with all the interested parties.
According to reports, Ladbrokes will be forced to reconsider expanding their sponsorship portfolio if the stakes are cut to £2. British Racing said horse racing will be impacted causing a yearly loss of £50 million. They feel the government must acknowledge the implications the potential reform would have on numerous industries and the national economy.
