For many, gambling is exciting and a bit of fun. For others, however, it is an addiction that ruins lives, marriages and mental stability. In the light of this, Paddy Power, one of Britain’s biggest betting firms, was gravely at fault in encouraging a customer to bet on its gaming machines despite showing clear signs of addictive behaviour.
The Gambling Commission fined the company £280,000 yesterday for its failure to protect this vulnerable person and, more widely, for not preventing money laundering. That is a just and necessary sanction but many are concerned that Paddy Power’s failings are not incidental to the industry. The machines on which its problem customer lost heavily might be described as a social menace.
These are fixed-odds betting terminals (FOBTs) on which customers are encouraged to place high stakes at high frequency. The speed of operation, in which punters can bet as much as £100 every 20 seconds, might almost be calculated to draw in people, hook them and ruin them.
One Scottish gambler took his own life in 2015 after losing up to £30,000 in a year on the machines. There is evidence to suggest that a great many people may be addicted to FOBTs, which turn a massive profit each year for the bookmakers.
There is no libertarian argument for encouraging behaviour that has catastrophic consequences. By definition, the bookmaker needs an edge over the gambler or the betting industry would fail. Yet exploitation of human frailty is a case for legislation and not just for fines from the regulatory body. These can be shrugged off by profitable firms. Fewer terminals in shops, lower stakes and slower play would not protect determined problem gamblers. But they may provide an interlude in which they could be helped. That help is overdue.