FOBT Roulette System and So Called “Cheats”. Fixed Odds Betting Terminals, commonly referred to as a FOBT, are big business in the UK. Each high-street bookmaker is allowed up to four of these machines in their shop and an overwhelming majority of them would have even more if the law would allow it. May 17, 2018  The maximum stake on a fixed-odds betting terminal is to be reduced from £100 to £2, following a lengthy government inquiry. Punters in Britain’s betting. Regulators are investigating the introduction of new virtual roulette-style games by bookmakers as restrictions on betting machines come into force. A reduction of the stake limit for fixed odds betting terminals (FOBTs) from £100 to £2 was introduced earlier this week to help protect vulnerable players.

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CASINO GAME RULES

Remember 2005? Well, whether you do or don’t, 2005 was the year that the UK relaxed the regulations governing bookmakers and gambling related firms with the introduction of the ‘Gambling Act’. At the time, the fear was that every major town in the country would have its own ‘Super-Casino’ preying on the poor and vulnerable. This, as we know now, never happened.

The Rise of Fixed Odds Betting Terminals

However, what did happen was, in the view of an increasing number of people, politicians and activist groups, far, far worse. Instead of the predicted super-casinos, the high street bookmakers have been transformed by the introduction of Fixed Odds Betting Terminals. Commonly known by the acronym FOBTs, there are now 33,000 of these scattered throughout the nation. Rightly or wrongly, the FOBTs have become the cause celebre of the anti-gambling lobby.

FOBTs: A Definition

Roulette Betting Rules

A Fixed Odds Betting Terminal is, in essence, a video table games machines. Players can bet on Roulette, Blackjack or even Virtual Racing at stakes up to an eye-watering £100 every 20 seconds. While there is a maximum win cap of £500 per spin, the rise of these machines has taken even the gambling industry by surprise. FOBTs now represent over £1 billion in profit and around 50% of the total profits of land based bookmakers. The vast majority of that amount comes from roulette.

Concerns and Pressure For More Regulation

Many commentators feel that roulette, in this form, is particularly pernicious as it appeals especially to vulnerable young adults, problem gamblers and those from socially deprived backgrounds. Indeed, Adrian Parkinson, formerly of the Tote and now the main behind the Campaign for Fairer Gambling, has commented that “We’ve taken the most dangerous form of gambling and placed it in the most accessible place”.

However, FOBTs were introduced to high street bookies way back in 2001, so why is it that it has become such a hot issue in recent months?

Well, first off, pressure from groups like Stop the FOBTs has forced the issue to the top of the political agenda with the Labour opposition party tabling a motion to give local councils and communities more power in restricting the expansion of high street bookmakers and, potentially, in banning fixed odds terminals altogether.

Additionally, more statistical research has been done about the impact of FOBTs – both on the bottom line of the gambling companies and on the effect these machines have had on the habits of gamblers.

Money Laundering: A Side-Effect of Fixed Odds Terminals

Lastly, there is a more worrying side-effect to the presence of Fixed Odds Terminals on the high street. This is one that would definitely come under the heading of the ‘Law of Unintended Consequences’. After all, one of the stated aims of the original 2005 Act was 'preventing gambling from being a source of crime or disorder, being associated with crime or disorder or being used to support crime'. So, the use of FOBTs as a mechanism for money laundering is definitely something that no one foresaw and no one wants.

Because the transactions are still primarily cash based and largely anonymous, FOBTs are considered in the ‘high risk’ sector by the Gambling Commission. In fact, using these machines to launder money is as straightforward as betting on both Red, Black and zero on a virtual roulette machine. The drug dealers and other criminals in need of ‘clean’ money willingly take the 10% or so loss they will make on this activity in order to create a verifiable looking paper trail to show that the money was earned or, in this case, won legitimately.

The Social Impact Of FOBTs

The questions surrounding Fixed Odds Betting Terminals are certainly complex, not least because of issues regarding personal freedom and choice. What is certain, though, is that the expansion of land-based bookmakers in the United Kingdom has been driven largely by profits accrued from FOBTs. The fact that much of this expansion has taken place in Britain’s poorer areas does leave the UK’s leading bookmakers open to accusations that they are acting in a predatory manner and are targeting the unemployed and those on low wage cash-in-hand jobs.

Figures produced by Fairer Gambling using industry data indicate that profits for the 50 constituencies with the lowest unemployment were just £44million while the profits for the 50 constituencies with the highest unemployment were well over £170m in 2012. This certainly suggests that the people playing Fixed Odds Terminals are among those who can least afford to do so.

Whatever the outcome of the vote, the controversy over FOBTs looks certain to continue. One thing for certain is that bookmakers will not relinquish such as profitable source of income without a fight.

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After the original decision by the UK government to reduce the maximum stake of fixed odds betting terminals in May it has now given confirmation that there is to be a new ruling which will take effect from April 2019 which states that customers of betting shops within the UK will be restricted to a £2 maximum bet – this is a massive reduction from the original figure of £100 and a surprise to many.

A lot of people are seeing this decision as something of a U Turn as it was expected that changes would be set for October 2019, but after a great deal of lobbying and also the resignation of government minister Tracy Crouch, the confirmation of an April inception was announced.

Fixed Odd Betting Terminals (FOBTs) from a significant part of betting shops revenue so naturally the they are not too keen with this latest ruling as delaying it until October 2019 would have resulted in around £900m, and there is some concerns that this drop in income will mean they will have to make some redundancies in order to survive, and as the gambling industry has over 100,000 employees there is a lot of speculation over what is at stake.

This move has been welcomed by those organisations that have been fighting for some stricter regulation in order to help those with a gambling addiction as FOBT’s are a contentious issue with many who welcome this new ruling. However, for those bookmakers that have been present on the high-street for decades, those businesses will have to mitigate job losses.

The gambling industry therefore finds itself in flux with the Gambling Commission in the UK reporting good, solid revenue figures for the online betting sector. In fact, back in 2016 the regulator confirmed that more cash was being spent by those that enjoy a bet online than anyone else.

As online gambling accounts for at least a third of all gambling revenue (and this includes the national lottery) this makes online gambling the largest single gambling sector, and gamblers have been transferring online for the convenience of being able to play on their favourite games whenever and wherever they choose.

Not only is playing online comfortable but the choice is also far wider than at any high-street betting shop with new slot sites, casinos and sports betting sites opening up offering a massive selection of popular games to choose from and as gaming technology advances games are more immersive and exciting than ever, and the FOBT ruling will most likely propel online gambling even further ahead.

Roulette Betting Chart

But not everything is rosy in the online gambling world as it is under close scrutiny not only by government but also by those that promote responsible gambling such as GambleAware and the Gambling Commission recently handed heavy fine to three online operators who flouted anti-money laundering measures.