UK gov't readies bookmaking industry clampdown

Ministers were expected to announce the review on Monday, according to two officials, and the Department for Culture, Media and Sport will examine new rules on advertising and prizes. Campaigners argue a clampdown is needed because gambling addiction is on the rise.

Tougher rules would be unpopular with the industry: higher taxes and tighter regulation have already hit earnings for some of the big betting chains.

Among the measures to be considered, are restrictions on fixed odds betting terminals, or FOBTs, the gambling machines within betting shops that represent a significant revenue stream for high street bookmakers.

FOBTs have become controversial because they allow punters to bet up to £100 every 20 seconds, with some players racking up huge losses within hours. Some MPs and groups such as the Campaign for Fairer Gambling have called them the “crack cocaine” of gambling and say they disproportionately attract problem users. Bookmakers deny this is the case but campaigners want maximum stakes to be reduced to £2.

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There could also be stricter rules about TV advertising. Bookmakers target young men during football matches and other sporting events. They are allowed to advertise before the 9pm watershed, if it is restricted to bingo or breaks in sports coverage

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The Association of British Bookmakers, the industry trade body, said that since the last review in 2013, betting shops have introduced a number of new responsible gambling measures. “These include giving gaming machine players the ability to set a limit on the amount of money they spend or time they play for, no advertising of gaming machines, the first cross operator national self-exclusion scheme and the new £50 stake limits.”

Industry executives have been warning ministers that tougher rules could cause serious harm to an industry that generates millions in taxes.

In December 2014, the government introduced a “point of consumption tax” — a 15 per cent levy on gambling no matter where bets are made, and bookmakers including Paddy Power, Betfair, GVC and 888 Holdings are among those to say profits have been hit.

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Increased regulation is one of the main reasons behind a series of industry mergers

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Rivals Betfair and Paddy Power combined this year. Ladbrokes and Gala Coral are in the final stages of finalising a merger. GVC Holdings, owner of Sportingbet, bought Bwin.party last year after outbidding 888 Holdings.

William Hill and Canadian group Amaya, owner of Pokerstars, the world’s largest online poker company by number of users, called off talks over a £4.6bn merger last week.

William Hill shareholders expressed reservations about the deal, but one person close to Amaya said it also faced hurdles from its investors because of the upcoming UK government review.

On Sunday, William Hill said: “This is the regular three year review of all machine stakes and prizes. We will contribute factual evidence about gaming machine use as well as highlighting existing and planned player protection measures in betting shops.”