The Myth Master of the Association of British Bookmakers

The Government’s decision to not reduce stakes on betting shop roulette machines (FOBTs) must still be dependent on the consequence of research addressing the “knowledge gaps”, as referenced in a letter from the Gambling Commission (GC)to the Department for Culture, Media and Sport (DCMS). This letter provides evidence of a strong association between FOBTs and at-risk gamblers, but does not disclose the full facts, as we have exposed.

The DCMS blindly accepts the myth perpetuated by the bookmakers that there is an economic benefit to allowing the spread of FOBTs. As a report by Landman Economics shows, both the wider economy and Treasury revenues are negatively impacted by FOBTs. The DCMS failed to investigate this aspect and totally ignored the economic cost of the social consequences of FOBT-related gambling addiction.

DCMS relies on the GC for advice, and they recently advised that FOBTs did not breach either the “fair and open” or the “prevention of crime associated with gambling” licensing objectives.

The GC position is that it’s “fair and open” to allow FOBT players to think they are gambling on roulette, but not to inform them that their cash will be lost several times faster on FOBTs compared to real casino table game roulette. The GC position is that it was fine to keep quiet about a major betting shop money laundering investigationthat had started prior to the consultation, and the criminal damage to FOBTs that takes place in betting shops every day.

In a recent article on Central Lobby, ABB Chief Executive Dirk Vennix said that the ABB submission included: “the average [FOBT gambler] plays once a month or less and spends an average of £7.55.” At once a month this equates to £90 per year, or at once every two months this equates to £45 per year. Based on annual FOBT loss in 2011-12 of £1.5 billion, this would equate respectively to nearly 17 million or 33 million FOBT gamblers. But according to the British Gambling Prevalence Survey, FOBT gamblers are only 4% of the adult population!

FOBT gambling reality is disclosed in the data from the GC’s letter to DCMS. FOBT losses are disproportionately obtained from the higher staking, more at-risk gamblers.

Stake per spin

% of spins

% of total FOBT loss

Cash amount 2011-12

£100 exactly

2.50%

16%

£0.24 billion

£50 or more

4.50%

21%

£0.32 billion *

All over £50

7.00%

37%

£0.56 billion *

*figures on these lines may actually be higher – the GC letter is not perfectly drafted

This demonstrates how important it is that adequate public access to the full FOBT data is finally granted and disclosed to all without any spin by GC, or anyone else, being applied.

Then we will see how long Mr. Vennix and the ABB can continue to undermine the debate by pushing myths.