UK betting shops have relied on fixed-odds betting terminals (FOBTs) to get by for years. However, they now have to offer low FOBT stakes and are hurting as a result.
FOBTs help shops in England, Northern Ireland, Scotland, and Wales supplement their income. But they’re now feeling the sting of not being able to offer high-stakes play.
I’m going to cover the drastic change in bet sizes throughout the UK. I’ll also discuss how these changes will affect the industry.
What Are the Current Stakes?
Fixed-odds betting terminals are somewhat like slot machines. However, they differ by offering electronic blackjack, roulette, and other games besides just slots.
Bookmakers set these terminals in their shops to generate extra revenue. After all, they only make so much from betting juice alone.
Betting establishments used to be able to offer stakes as high as £100. Now, however, they’re only allowed to accept £2 maximum bets.
Why Did Politicians Impose Low FOBT Stakes?
The push for low FOBT stakes came from British politicians. Some argued that high bet sizes encourage people to gamble above their means.
So, parliament eventually enacted a plan to lower the maximum bets. But few envisioned them reducing the stakes so drastically.
This decision has had a positive impact on lowering the number of problem gamblers throughout the country. On the downside, it has also hurt the shops’ bottom line and cost jobs within the industry.
Will This Move Kill UK Bookmakers?
Many argue that the UK betting industry was already saturated. After all, it features thousands of gambling shops sprinkled throughout the country.
But the move to force lower FOBT maximum bets has prematurely put some shops out of business. The full extent of the damage has yet to be seen.
The UK government is entirely within their rights to force lower top wagers. However, the end result is that many jobs within the industry will be lost as a result.