New Fobt Limits
This week new rules around minimumbets on fixed odds betting terminals (FOBT) will officially come into place.
Under the new rules, the maximum bet on FOBTs will be reduced from £100 to £2. It is hoped that the new measure will help to safeguard players from overspending and subsequent gambling-related problems.
In this post, we will ask whether this new ruling could lead to similar measures taken towards online casino bonuses.
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UK Government Measures
Initially the government planned to implement the FOBTs changes by October of this year.
However, this was met with large criticism from backbenchers, who were flummoxed that the changes would take so long to implement.
This led to the resignation of Sports Minister Tracey Crouch (pictured), who believed that the changes should be implemented in April, rather than the proposed October date.
This is what Crouch had to say about the proposed delay:
“I couldn’t justify the delay to people like that… I couldn’t take the responsibility of potentially not meeting people in the future because they’d taken their lives over these machines.”
More Work to Be Done
In spite of the newly imposed rulings, the UK government recognises that more still needs to be done to help safeguard players.
The new The UK Secretary of State for Digital, Culture, Media and Sport, Jeremy Wright recently said that the government are looking at what actions are necessary to tackle problem gambling online and “whether gambling on credit should be limited”.
Also, some experts are warning that the new FBOT terminalrulings may not have the intended effect.
Experts worry that problem gamblers may just change the way theyplay and continue to gamble, making the envisioned benefits of the FBOT max betlimit virtually null.
Indeed, many believe that whilst the new FBOTs rulings are apositive step, more needs to be done to tackle the issue of problem gambling inall forms, rather than through specific rulings.
Mike Chatra who works with problem gamblers said:
“In 25 years of working with Gamblers Anonymous I am not aware of one single example of an individual who has managed to stop gambling on one product and have no problems with others.”
Will Bonuses Be Affected?
The move towards stricter regulationin the UK gambling market is inexorable and it appears that steps will be madein many different directions to help curb the problem of gambling-related harm.
The United Kingdom Gambling Commission(UKGC) have been considering implementing different measures towards stricterregulation for some time now and whatever happens, we can safely predict thatmore regulation is inevitable.
The big question for us here at Casinosnodepositbonusis whether measures similar to the new FOBT ruling may be applied to casinobonuses.
At this point, it is difficult to say. At the time of writing there hasn’t been any talk of imposing a widespread limit on how much players can wager at online casinos, so it seems reasonable to conclude that no limits will be imposed on bonus wagering.
Also, with bonuses, there is usually amaximum amount which you can win from them.
Consequently, there is no benefit todepositing significantly more money in the hope of winning more from the bonusin the first place.
Also, in terms of deposit bonuses, there is almost always a limit to the amount the online casino matches, making overspending towards these bonuses highly unlikely.
One possible change is that online casinos may start to match deposits to lower values, but we think this is unlikely.
Big Bonuses and Big Deposits
However, with that being said, it wouldn’t be too surprising if bonuses that require big deposits for big rewards become far less numerous.
Also, action could be taken against bonuseswhich don’t have maximum wins imposed on them.
These kinds of bonuses are preciselythe kind of thing which many warn lead to gambling problems.
Latest in United Kingdom Gambling Commission Rulings
The new rulings on FOBTs are part of the UKGC's efforts to bolster the protection measures for players and to help make gambling safer.
The UKGC has welcomed the changes but have also emphasised the need for operators to not let their standards slip and to ensure that they work to ensure their customer’s safety.
Commission chief executive, Neil McArthur said:
“Together with government and the industry, we must continue our ongoing work to make the whole industry safer – this includes continuing to make progress with making other products safer, as customers may move to gamble in other ways following the stake cut – including online, mobile and on the high street,”.
The UKGC has already announced that new identity and age check rules for online players will come into effect from May.
These new rulings will require all new customers at an online casino to complete a verification including name, age and address verification before they can gamble with their own money or with bonuses.
The UKGC is also looking at the possibility of introducing gambling blocking software, banning credit card payments from online gambling and the body is also looking at how operators can communicate more effectively with those who could be suffering from gambling-related harm.
The Times they Are A-Changin’
There is a lot changing in the industry right nowand it’s simply impossible to predict exactly what will happen.
But in our opinion, the amount you can wagertowards bonuses is unlikely to change for the majority of online casino bonusesgoing forward.
It has been just over one month since the new maximum limit for fixed odds betting terminals of £2 came into force on 1st April 2019. With reports already that independent bookmakers have been hit the hardest, as revenues from the FOBT machines has reduced by up to 40% as a result.
Indeed, Paddy Power Betfair back in March suggested that revenue from the machines would reduce between 33% and 43% and the latest indicators confirm that so far this had been borne out.
New Fobt Limits Definition
Further to this, the firm today announced during their trading update that: “It’s very early days but based on what we’ve seen so far, we think it’s more likely to be closer to 43 per cent, which we think is in line with the market.”
It is also being suggested that the independent bookmakers are the bookies being hit the hardest by the change to the maximum bet stake to FOBTs. As the independents do not have the financial muscle to ride the downturn out, unlike their high street chain competitors, such as the Ladbrokes, Corals and William Hills of this world.
Scotbet Chairman John Heaton also echoed the same line as Paddy Power Betfair, by commenting: “We’re down almost 40 per cent but with much greater variations in margins so we’ll need time to judge the real impact. It looks like there’s been no increase in sportsbook, although with the Grand National and Champions League it’s difficult to say. Larger-staking FOBT players have disappeared.”
Another independent in the form of Roar Betting has also felt the hit, as they closed two shops in London on 1st April, leaving the small independent chain with just one shop left open. Dominic Ford who owns Roar Betting told the Racing Post: “It’s the £2 stake. We’re not making money in those shops, there’s not enough headroom when you take away 40 per cent of the FOBT income. It’s not preventing any harm, it’s just preventing gambling.”
New Fobt Limits Vs
Roar Betting is just one of several independent bookmakers that have had to close shops as a direct result of the new limit imposed on FOBT’s, with there also being further reports of independent betting shop closures across the country.
However, it remains to be seen as what action if any with regards shop closures the ‘big boys’ will make. A case of watch this space….