A crucial government-ordered report on the future of FOBT machines in British bookmakers’ shops is set to be published later this week.

The UK Gambling Commission has outlined its plans to investigate the impact of gaming machines on problem gambling amid industry fears the Government could instigate tougher regulations. As part of ongoing assessments, the Commission has confirmed it will set up a panel of international problem gambling experts in order to look into the issue.

Tax and regulatory changes have allowed for the explosive growth in the use of fixed-odds betting terminals (FOBTs) in UK betting shops over the past decade. But as FOBTs continue to cause some degree of concern to both the Gambling Commission and the Department of Culture, Media and Sport - based on a growing body of evidence that the machines may prove particularly attractive to problem gamblers – certain question marks remain over their future.

The Gambling Commission’s long-awaited report into the impact of high-stake, high-prize gaming machines on problem gambling has recommended no immediate action be taken - a conclusion that has satisfied the UK’s bookmakers.

The UK’s Conservative opposition is considering halving the stake limits on category B2 machines, otherwise known as FOBT’s, in UK betting shops, according to sources.

The UK government is likely to turn to increased taxation and the introduction of playing limits on fixed odds betting terminals (FOBTs) should evidence emerge of increased problem gambling, according to analysts at JP Morgan. Fearing the consequences for UK bookmakers, the investment bank instead recommends diversified European lottery companies including Lottomatica and Intralot.

As had been expected, the UK Government yesterday announced measures to put the bingo industry on a better footing via the doubling of allowable £500 jackpot machines per club. But while the opposition has attacked the announcement as being too little too late, one analyst believes the news could open up the way for a bidding battle for operator Rank.

The Gambling Commission has recently conducted two raids on venues where illegal gambling machines were present. The Commission has also published guidelines to determine what is a regulated gaming machine.

Both bookmakers and racecourses expressed disappointment yesterday after the government announced it would set the 2008/09 levy on horserace betting at the same rate as last year. The government also rejected bookmaker’s requests to offset their licensing costs and their bills for Turf TV and delivered a warning over the future regulation of B2 gaming machines in shops.

At last the UK Government looks set to announce measures that could provide some relief for the bingo and amusement centre industries. The Department of Culture, Media and Sport under secretary of state Gerry Sutcliffe announced in the House of Commons on Monday that a written statement would be published today on measures that would “answer the issues” faced by both industries.