A cut in the maximum stake on fixed-odds betting terminals (FOBTs) will be brought forward to April 2019 after the government backed down in the face of a growing rebellion that made allies of MPs across the political spectrum.
The chancellor, Philip Hammond, said in the budget that a reduction in FOBT stakes from £100 to £2 would not take effect until October next year, a decision that handed bookmakers a £900m windfall and triggered the resignation of the sports minister Tracey Crouch.
However, after days of speculation about a U-turn, the culture secretary, Jeremy Wright issued a written statement on Wednesday afternoon confirming that stake reduction will take place six months earlier.
“The government has been clear that protecting vulnerable people is the prime concern, but that as a responsible government is is also right to take the needs of those employed by the gambling industry into account and provide time for an orderly transition,” the written statement says.
“Parliament has, however, been clear that they want this change to be made sooner. The government has listened and will now implement the reduction in April 2019.”
An increase in taxes on online casinos from 15% to 21%, designed to make up the tax shortfall from FOBTs, will come in at the same time.
The Labour deputy leader and shadow culture minister, Tom Watson, said: “This climbdown shows the disastrous political judgment of Jeremy Wright and Philip Hammond.
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