Fixed Odds Betting Terminals

Steve McCabe Excerpts

Wednesday 8th January 2014 Commons Chamber

[Mr John Whittingdale (Maldon) (Con)]

I welcome the debate as an opportunity to bring some light to the subject, rather than the large amount of smoke that has obscured it so far, but that might be a statement of hope rather than experience.

It is important to bring some perspective to the debate. Gambling is a legitimate activity that brings considerable pleasure to millions of people in this country, that generates a lot of economic activity and that provides employment and tax revenue for the Government. Betting shops are not a blight on the high street; they are regulated and controlled environments that provide employment and, in some cases, a social benefit.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

The hon. Gentleman says that gambling raises revenue for the Government, but in actual fact the Government receive about £3 billion a year in revenue and the profit on fixed odds betting terminals is about £1.5 billion. It costs the state £3.6 billion to deal with problem gamblers, so does that not suggest that this is bad economics?

[Mr Whittingdale]

I shall come on to problem gambling, but it is a myth to suggest that that is entirely a result of FOBTs. There is a difficulty due to problem gambling, and a small number of people suffer from addiction—of course they need some protection. It has always been a principle that the harder forms of gambling are permitted in more controlled environments. To that extent, it was something of an anomaly that the previous Government allowed B2 machines on the high street while there were restrictions on those machines in adult gaming centres and casinos. It was ironic, too, that the previous Government wanted to introduce category A gaming machines, for which there were no limits on stakes or prizes, in super-casinos. Perhaps those anomalies should have been addressed. That was why, when the Culture, Media and Sport Committee looked at the problem, we recommended allowing up to 20 B2 machines in casinos and some B2 machines in adult gaming centres.