According to a new report the Treasury will lose more than £100m for each year that it postpones the cuts on Fixed Odds Betting Terminals (FOBTs).

Earlier this year, after calls from politicians and charities (including CARE), the Government announced that it would slash the stake on the controversial betting machines from £100 to £2 per spin.

Research has shown that FOBTs are often clustered predominantly in deprived areas, their presence deliberately targeting vulnerable people. The machines have also been linked to crippling debt, marriage and family breakdown and serious mental health issues.

Despite this, the Government is stalling on introducing the new cut over fears they will lose tax revenue.

However, in its new report, the Centre for Economic and Business Research (Cebr) estimates that whilst the Treasury will lose money from the machines, it will be offset by £419m in other benefits. Cebr also factored in an estimated £19m economic benefit from FOBT users whose money would be diverted from gambling into other parts of the economy.

Indeed, the report highlights that the Treasury will actually lose between £98m and £132m for every year that the maximum FOBT stake remains at £100 per spin.

CARE’s Deputy Director of Public Affairs, Chris Buttenshaw comments:

“The Treasury now has very little excuse for dragging its feet any further on implementing this sensible and necessary reduction in the stakes on these machines.

“Machine manufacturers have told MPs that changes to the machines could be made within months so there should be no further delay.

“FOBTs cause huge social harm and the Government should honour its commitment to implement the change in less than a year.

“The Chancellor must reassure the public that he is taking the matter seriously and outline exactly when we can expect this change to come into effect when he announces his Budget later this autumn.”

Read more about our work on gambling here.