UK bookies face regulatory blow over FOBT stake cut dodge

UK bookmakers are backpedaling furiously after introducing new gambling products intended to fill the void left by the new reduced stakes on fixed-odds betting terminals (FOBT).

On Tuesday, the UK Gambling Commission (UKGC) issued a notice saying two of its licensees – Paddy Power Betfair and Betfred – had withdrawn products introduced into their betting shops only the day before, which happened to be the first day that FOBT stakes were reduced to their new maximum £2 rather than the £100 that they’d previously allowed.

The two bookies – and a third (William Hill) who was reportedly contemplating following the others’ lead – were responding to a UKGC warning regarding their new products, which resembled variants of roulette, the same product most prominently featured on FOBTs. Paddy Power’s Pick ‘n’ 36 game allowed a maximum stake of £100, while Betfred’s Virtual Cycling allowed customers to stake up to £500.

The UKGC expressed concern that the new products “undermine the changes made” to the FOBT rules. UKGC enforcement director Richard Watson said the regulator had been “absolutely clear with operators about our expectations to act responsibly following the stake cut implementation this week. We have told operators to take down new products which undermine the changes, and we will investigate any other products that are not within the spirit and intention of the new rules.’’