The unlogic of the ‘economic’ way of thinking

Many commentators regard the British government’s decision to cut the maximum stake on fixed-odds betting terminals (FOBTs) from £100 to only £2 with skepticism. In arguing against this decision, they quote The Association of British Bookmakers’ warning that a stake cut would cause 21,000 people to lose their jobs. The loss of job is a tragic event in many people’s lives, but according to a report by the Gambling Commission, 430,000 British over-16s are “problem gamblers” and suffer from severe addiction. The report defines problem gambling as a serious condition that “compromises, disrupts or damages family, personal or recreational pursuits”. The effects of problem gambling on one’s life are not less harmful than losing a job. 

Even in the ‘economic’ world of numbers, 430,000 weighs much more than 21,000. That is why the opponents of a stake cut try to decorate the British Bookmakers’ warning with further arguments. Alistair Osborne, for instance, writes in The Times that a stake cut on FOBTs would not solve the problem. The FOBTs addicts could switch to online roulette “on their phone standing in a betting shop”. “Gambling addiction is more complicated than one product”, she states (Source: The Week, 26 May 2018, Issue 1177). This argument is like claiming that a ban on hard drugs such as heroin (or setting limitations to their use) would not solve the drug addiction problem. Hard drug users could switch to other drugs – become alcoholics for example. 

Many of us know that the consequences of addiction differ between poor and rich. A heroin addict who can afford to eat properly, to sleep properly and to enjoy comfort, lives on average a much longer and less fragile life than a low-paid or unemployed heroin addict. Taking the side of the British Bookmakers, who would lose a considerable amount of revenue because of the stake cut, means ignoring the problems and needs of those who suffer most from a gambling addiction. In justifying the government’s decision to cut the maximum stake on FOBTs, Matt Hancock, the secretary of state for Digital, Culture, Media and Sport, said: “These machines are a social blight and prey on some of the most vulnerable in society, and we are determined to put a stop to it and build a fairer society for all.”

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