Fascinating new information on Fixed Odds Betting Terminals (FOBTs) has been brought to light during the recent
Glasgow Sounding Board investigation into betting shops and FOBTs. This investigation was the basis for Glasgow City Council moving toward proposing restrictions on the machines, as well as calls for Holyrood government to take action. Glasgow, which is the most employment deprived borough in Scotland, also has the
highest number of betting shops anywhere in the UK.
The investigation includes machine supplier data based on an eight week period from March 2014. The gross FOBT win per shop per week across Glasgow was reported at £2,954 which equates to an annual win in Glasgow of £30,721,600. Our annual estimates for 2013/14 were £30,054,804 – an insignificant difference.
This transactional data was compiled by the two FOBT suppliers, Inspired and SG Gaming, which between them gross well over £160 million from their revenue agreements with the betting shop operators.
The Association of British Bookmakers (ABB) has been issuing "warnings" about the accuracy of our estimates since we launched them in 2013, but as more evidence is revealed by the industry, our figures are looking increasingly accurate. The reality is that the ABB could have produced, through Inspired and SG, the accurate geographical statics that we have estimated. They have had well over a year to arrange this, but instead have chosen to attack the Campaign’s estimates.
This type of transactional data was also investigated by NatCen to determine if it could be useful in carrying out the machine research commissioned by the Responsible Gambling Trust (RGT). This is the research plan that was proposed in autumn 2012 and is due to finally report in autumn this year. However, no transactional data has yet been made public under this plan. Furthermore, it is clear that there is no scope in this data for the in-depth problem gambling research needed, as the Campaign pointed out from the outset.
The RGT could have easily requested compilation and publication of the transactional data from Inspired and SG, and submitted it in the 2013 Triennial review of stakes and prizes, but chose not to do so. Why is there reluctance by both the ABB and the RGT to provide FOBT transparency?
The Glasgow supplier data is not complete though as it omits some important statistics, such as what percentage of stakes are over £2 per spin as opposed to the stakes up to £2 per spin. It also does not separate out the amounts lost by amount staked. (Some sessions will include both types of play but these could have been accounted for separately.)
The most interesting information from the Glasgow data relates to the ABB’s harm minimisation measures, which were introduced as part of their Code of Conduct. On reaching the mandatory notice time limit of 30 minutes, which produces a pop up warning to players, 94% continue to play and 44% actually insert more cash into the machines. On reaching the mandatory notice loss limit of £250, only 4% of gamblers quit with 96% continuing to gamble and 75% putting more cash in.
As the Guardian revealed from Ladbrokes data, 92% of all sessions never even receive a pop up warning.
When looking at voluntarily imposed limits on spend, 46% end the session immediately, but we do not know from the data provided whether a new session of play on another FOBT is started as the technology to track players is not yet available. 42% are identified as collecting their excess credit and continue to play within the same session.
Whilst the ABB claim the code is working, it is already very clear that these mandatory notices are having an impact of close to zeroon problem gambling and those who wish to control their gambling. The code is working for the bookies though, to the extent that FOBT profits have not been impacted and Government has mistakenly attributed some merit to the operation of the code, buying more head-in-sand time. The parties that advocated the benefits of these measures should be ashamed of themselves and as Glasgow and the Scottish government are now coming to realise, more direct action to restrict betting shops and FOBTs is the only solution.