Betting shop operators in Britain may have felt besieged yesterday following government announcements that will affect their bottom line. A dispute with the horse racing industry was settled by the Department for Culture, Media and Sport with bookmakers being ordered to pay around £100 million to support racing with prize money and animal welfare funding. The Sports Minister expressed regret that the matter had needed arbitration instead of the two sides reaching a commercial agreement.

The British Horse Racing Authority had wanted a 15% contribution from bookmakers’ expected winnings; the Association of British Bookmakers had wanted to limit the levy to £35 million. Neither group was entirely pleased by the government decision to keep last year’s 10% levy for another year. The government also looks set to limit bookmakers’ profits from the fixed odds betting terminals (FOBTs) found at high street betting shops.

The DCMS yesterday asked the Gambling Commission to give ‘particular priority’ to the risks associated with FOBTs, which presently account for around one third of betting shop sales. The instruction comes not before time, as the gaming machines are increasingly at the centre of problem gambling figures. Organisations such as the charity GamCare have frequently pointed to the proliferation of FOBTs at betting shops as being a source of concern.

The Gambling Commission must now look at ways to reduce the risks associated with FOBTs. The government wants the amount gamblers can lose to the machines reduced. Ralph Topping, just named the new CEO of William Hill after an eight-month search, commented that the bookmaking industry is facing significant change and challenges, including that from new regulation. In Scotland the Justice Secretary has called for a levy on the gaming industry to help problem gamblers, as voluntary funding from the industry is insufficient to meet requirements. (E-02.21.08)

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