Comment
Politicians make uncomfortable bedfellows
andrew mccarron viewpoint
T
he hypocrisy of the United States in referring its trade dispute with China over car parts to
the World Trade Organization (WTO) is what the online juris- diction of Antigua and Barbuda is hoping to highlight with its latest media offensive. The WTO dispute over online gambling, won com- prehensively by Antigua has been rumbling on for so long that some would be forgiven for forgetting all about it. The US government certainly seems to have and, despite Antigua’s best efforts, appears to be resistant to having its mind jogged. Although investing $600,000 doesn’t sound a lot when the potential prize is 200 times that amount, it is a fair whack for a small Caribbean island that has suffered as much as any other in the eco- nomic downturn. It is little wonder that it is asking for igaming operators for a little help in meeting the bill. After all, if its efforts are suc- cessful it could provide the ultimate prize - access to the American market for online gambling. Unfortunately, such an outcome would be at extremely long odds. The USA would be more likely to cough up the $120m in fines than open its borders to online gaming firms based offshore. So what advantage is there for online firms to helping out Antigua? Well, it provides an extra pressure point for the federal government, which is starting to feel the heat from a number of states wanting to provide its citizens with the means to gamble online. State lotteries have already forced a reinterpretation of the Wire Act which seemingly opens the door for poker and casino. With internal pressure to regu- late online gaming being joined by a little more external pressure, things could move along that bit more.
Politics and gambling are uncomfortable bedfellows as it is. Even the current UK Gam- bling Act was only passed during the wash-up period before the 2005 General Elec- tion and it has only taken a few years before the next govern-
ment has announced it is reviewing its online gambling regulations in order to make them more restrictive. There are also the worrying signs that B2 gaming machines are next up to the ceremonial chopping block in exchange for some political currency. Lib Dem MP Don Foster has seemingly pushed a review of gaming machines through the Coalition’s approval processes and the industry could be facing the prospect of the review being published just ahead of the next General Election, where both the Conservatives and Lib Dems will both be desper- ate for positive headlines. A study by the Institute of Economic Affairs examining the seven years since the Gambling Act was launched last month, featuring an appearance by the man that got it all up and running - Sir Alan Budd. It was his Budd report that paved the way for the legislation, although it dif- fered quite considerably from the final article. Budd accused ministers of ‘dashing around like frightened rabbits in response to a press cam- paign’, specifically the Daily Mail’s ‘Kill the Casino Bill’. Given the Mail’s fulsome support of Foster’s attempts to put more shackles on B2 gaming machines, we’re in danger of having history repeat itself, regardless of what the conclusions of the review will be. Politicians jumping to the tune of a national newspaper which is only pedalling anti- gambling headlines as it waits for the next cancer scare story to come along.
But what can be done? Jen- ningsbet managing director Greg Knight wrote in this mag- azine last month about sup- porting more curbs on the opening of betting shops for the good of the industry and he might have a point. If allow- ing a few more planning restrictions on the location of LBOs can give the papers and politicians the moral victory they are looking for just before the next election, then it may stop greater mistakes being made to legislation, and the bookmaking business, on the whims of the press pack.
44 BettingBusinessInteractive • OCTOBER 2012
Common misund on primary gam
The Gambling Commission’s director of regulatory risk an misunderstandings that appear to be clouding the debate
B
2 machines (formerly known as FOBTs) and betting shops have again been in the news recently. The government has said it will be looking at the evidence base on B2 machines and problem gambling. While no deci- sions have yet been taken about the exact form this work will take, the Com- mission will be supporting the Department for Culture, Media and Sport in their activity.
In the meantime, the Commission has been working hard to communi- cate with all those involved about a related issue - primary gambling activity in betting shops. We have recently produced a special bulletin for local authori- ties on the issue to help clarify the position and tackle some misconcep- tions that have arisen. As bookmakers already
know, the Gambling Act 2005 has the effect of
restricting B2 machines to licensed betting shops (and casinos). The question of what constitutes a genuine betting shop continues to be a subject of some debate and confusion, with a sim- plistic view gaining trac- tion - erroneously - that if gaming machine turnover exceeds betting turnover in a particular shop, it must fail the test of primary gam- bling activity. In reality, readers will not be surprised to learn that it is not as simple as that. There is a fundamental mis- conception at large - the “50/50 myth” - that there must be more profit or turnover from betting than machines to satisfy primary gambling activity.
In making judgements about whether individual premises are being run as genuine betting businesses, we and others (for example local authorities) need to take into account both expected and actual use of
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