Bookmakers threatened with action after new games 'undermine' FOBT stake cut

Betfred and Paddy Power could still face action from the Gambling Commission after withdrawing products launched in the wake of the new £2 maximum stake on FOBTs following a warning from the regulator.

The commission is continuing to examine the matter and said it may also investigate key senior staff responsible for bringing the products to market.

A third bookmaker which was also poised to launch a new product, understood to be William Hill, has also been warned.

Maximum FOBT stakes were officially reduced to £2 from £100 on Monday and the commission said it was concerned the new products undermined the change brought in by the government in response to claims the machines caused gambling-related harm.

Betfred had introduced a virtual cycling game based on a roulette wheel with a maximum stake of £500, while Paddy's Power's Pick ‘n’ 36 game also allowed customers to bet on numbers between one and 36 with a maximum stake of £100. Both involved customers placing bets over the counter.

Gambling Commission chief executive Neil McArthur wrote to bookmakers last weekendCredit: Richard Stonehouse

Last weekend Gambling Commission chief executive Neil McArthur wrote to bookmakers warning them not to try to circumvent the FOBT stake cut.

The regulator's executive director for enforcement Richard Watson said on Tuesday: "We've been absolutely clear with operators about our expectations to act responsibly following the stake cut implementation this week.

"We've told operators to take down new products which undermine the changes, and we'll investigate any other products not within the spirit and intention of the new rules."

High-street bookmakers have warned the curbs on FOBTs will make many betting shops unprofitable, leading to widespread closures and the loss of thousands of jobs.

A spokesman for Betfred said on Tuesday: "This week betting shops have gone through a seismic change and many will no longer be viable given the new restrictions on Fixed Odds Betting Terminals.

"In an attempt to grow our over-the-counter business we’ve therefore introduced a number of special offers on a wide range of sports, and have also revamped our virtual channel with new virtual horseracing and a new virtual cycling game.

"Bets for all these products need to be filled out on a betting slip and handed over at the counter, where our staff can interact with the customers as they do so. These are not machine games but over-the-counter bets."

However, he added: "We removed the virtual cycling product and all associated marketing early this morning after discussions with the Gambling Commission."

The virtual cycling game Betfred have withdrawn

A spokesperson for Paddy Power said on Tuesday: "We offer our retail customers a range of number-based betting products and this [Pick ‘n’ 36] game was introduced as part of a short trial in a selection of shops. This trial concluded earlier today and we'll now assess customer response and feedback."

Bookmakers came in for strong criticism from Labour's deputy leader Tom Watson, who accused them of trying to cheat the system.

He said: "They clearly haven’t learned any lessons – if they won’t reform themselves, a Labour government is determined to do it for them."

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