UK government publishes white paper on gambling reform
The UK government's much-anticipated white paper on gambling reform, ‘High Stakes: Gambling Reform for the Digital Age’, was published on Thursday. The publication marks the "biggest shake-up of regulation in the sector for nearly 20 years", and was delayed at least four times since the review of gambling laws was first announced by Oliver Dowden, then culture secretary, in 2020. The white paper marks the first new proposed regulation in the sector since the invention of the smartphone, which has revolutionised how people in the UK gamble.
Much of the proposed measures do not apply to Northern Ireland, as gambling policy is devolved matter. Nevertheless, broadcast and online advertising of gambling products are reserved to Westminster. Therefore, measures (or lack thereof) regarding advertising in sport, in the media and online are of significance for NI.
What follows is a summary of the key measures contained in the white paper, and reactions to its publication.
Key measures:
Statutory gambling operator levy:
A new mandatory levy will to paid by gambling companies will replace the current voluntary levy.
Proceeds will be ring-fenced for funding research, education, and treatment of gambling harm.
The rate will be subject to consultation and based on factors such as business size, operating costs, and problem gambling rates.
New online stake limit:
A new stake limit for online slots will be introduced, with a default maximum stake of £2 to £15 per spin.
A consultation will be launched on options for specific protections for under 25s.
Player protection checks:
Betting companies will be required to conduct seamless player protection checks on the highest spending gamblers to check they’re not incurring harmful losses.
Checks will happen instantaneously and be targeted where there is the most risk of harm.
New powers for the Gambling Commission:
The Gambling Commission will have new powers to tackle and block unlicensed black market gambling firms from operating in the UK.
The fee structure for the Commission will be reformed to give it greater flexibility to respond to emerging risks and challenges.
Restricting bonus offers:
The Gambling Commission will take a closer look at how bonuses are constructed and targeted to prevent them being used in harmful ways.
Horseracing levy:
There will be a review of the current horserace betting levy to ensure that racing continues to be appropriately funded for the future.
Other measures:
Loopholes will be removed to prevent under-18s from accessing any form of online gambling, cash prize fruit machines, or widely accessible scratchcards.
Local authorities will have new powers to conduct impact assessments when considering new applications.
There will be a review of online game design rules to limit the speed of play and other characteristics that exacerbate risks.
Responses
Northern Ireland
Stormont APG welcomes white paper, though says more protections needed for NI
The All Party Group (APG) on Reducing Harm Related to Gambling welcomed the launch of the UK government’s white paper.
Whilst most of the measures proposed in the white don’t apply to Northern Ireland, where they do, the government at Westminster needs to do much more to protect our children and young people from gambling advertising in sport in the media and online. In Northern Ireland we are now lagging even further behind the rest of the UK when it comes to having fit for purpose laws that protect people living here from gambling related harms. Our gambling laws predate the internet!
Speaking about the launch of the white paper, Chair of the APG, Robbie Butler MLA, said: "Whilst we welcome the release of this publication, it is concerning that although the review goes some way to acknowledging that the gambling industry should face tougher regulation and that more should be done to protect adults and children, the stark fact is that online gambling continues to be unregulated in NI."
Vice Chair of the All Party Group on Reducing Harm Related to Gambling, Philip McGuigan MLA, added: "Whilst we are pleased to see the publication of the white paper today with proposals that are being described as a ‘turning point’ in GB, we have a long road to travel in trying to bring the north’s regulations up to date. The All Party Group on Reducing Harm Related Gambling is committed to working to bring about gambling reform which will be fit for the digital world in which we live and we will continue to keep it top of the Stormont agenda."
GB
DCMS Secretary of State Lucy Frazer, signing off the white paper, underlined the recommendations as the “balance between consumer freedoms and choice on the one hand, and protection from harm on the other". She added: "Great Britain has been seen as a world leader in the oversight of gambling, with our comparatively low problem gambling rate but internationally successful gambling sector [...] I hope this new package and the policies which we will work with the Gambling Commission and others to implement will continue to be seen as world-leading.”
The All Party Parliamenty Group (APPG) on Gambling Related Harm welcomed the measures, saying that they were a "turning point in the regulation of the online gambling industry in this country which will protect gamblers, young people and children for years to come." They added however that "more must be done on advertising to protect children. The Premier League’s decision to remove front of shirt advertising on match days was welcome but we are bombarded by gambling advertising in sport, in the media and online."
Carolyn Harris MP, Chair of the APPG, said: “Regulation of the online gambling industry has been long overdue. I am delighted that the government has finally adopted the recommendations that we put forward to reform our vastly outdated gambling laws...”
Iain Duncan Smith MP, Vice Chair, added: “I am delighted to see today a key Conservative manifesto promise to reform our outdated gambling legislation finally come to fruition and end the worst abuses of the gambling industry. [...] But there is more to do, and we will make sure we hold the government’s feet to the fire to ensure these measures are implemented swiftly and that the reform does not stop here.”
Ronnie Cowan MP, Vice Chair: “The Government has finally listened and agreed to bring forward our suggested reforms to our gambling legislation after years of campaigning. Affordability measures and stake limits are essential to protecting people. I am concerned that after years of delay the UK government is still talking about putting some matters out for consultation. They should have been engaged in this discussion, especially with those with lived experience, for years...”
Lord Don Foster, Liberal Democrat peer and Chair of the Peers for Gambling Reform Group said he was happy that many of the areas the group had campaigned for were included in the white paper, however was concerned that the government opted to not go further on the question of gambling advertising. “The industry has put out statements over the years saying advertising doesn’t have any link to gambling harm. And the research evidence is totally to the contrary,” said Lord Foster.
Paul Blomfield MP echoed this criticism. He argued that the white paper did not contain enough measures sufficiently to tackle advertising. Blomfield – as the MP for Sheffield Central – represents Liz and Charlies Ritchie. The bereaved couple have campaigned for reform through their organisation Gambling with Lives. He said: “The Premier League recognised that advertising is harmful, but a front of shirt ban isn’t enough. Fans are exposed to an average 700 ads at every Premier League game.”
Dr Matt Gaskell of the NHS Northern Gambling Clinic, said that the white paper "doesn't go nearly far enough", and fails to address the harm caused by highly addictive products and marketing practices, and urgent action is needed to protect vulnerable individuals, including implementing stake limits and banning gambling adverts, while a statutory levy on the industry overseen by the Department of Health and Social Care could lead to much-needed research into the source of harm.
Matt Zarb-Cousin, director of Clean Up Gambling, welcomed the measures, but argued that further consultation will prolong suffering. He said: “The government’s commitments to limit online stakes, introduce affordability checks and implement a statutory levy are all very welcome [...] But the requirement of further consultation will allow the sector more time to profit from the harm it’s currently causing.”
Fiona Palmer, CEO of GAMSTOP said: “Online gambling has changed out of all recognition since the 2005 Gambling Act, and we welcome any changes that protect vulnerable individuals, especially younger consumers who make up a significant percentage of our consumer base. [...] We are particularly concerned about the targeting of vulnerable individuals by illegal sites not registered with GAMSTOP. More than 365,000 people have excluded themselves from online gambling and it is worrying that they are being deliberately targeted when they are at their most vulnerable."
Anna Hemmings, CEO of GamCare said: “We are pleased to see that the gambling white paper is now published. The measures the Government are proposing are an important recognition of the changes needed to make sure that legislation around gambling is fit for the digital age. [...] We welcome additional financial risk checks for people who are gambling more than they can afford. Last year, 75 per cent of those using our services told us they struggled with long-term financial difficulties."
Jette Nygaard-Andersen, CEO of Entain, said: "The UK Gambling Act Review is an important step towards having a robust regulatory framework that is fit for the digital age and creates a level playing field for all operators. We welcome the clarity that it will bring to the industry and customers. [...] As a global and diversified business that operates in over 40 territories around the world, all of which are regulated or regulating, we are firmly in favour of regulation that preserves the market for the vast majority of customers who enjoy recreational betting and gaming, whilst also ensuring appropriate protection to all players."
Peter Jackson, CEO of Flutter Entertainment said: “We welcome the publication of the White Paper, which marks a significant moment for the UK gambling sector. Whilst we will need to review the detail of the proposals, we believe proactive change will lead to a better future for our industry. [...] We will continue to constructively engage with the Government and Gambling Commission as part of any subsequent industry consultation processes, with a focus on providing support to the minority at risk of gambling harm without interfering disproportionately with the enjoyment of the vast majority.”
William Woodhams, CEO of Fitzdares said: “Ultimately we have spent five years preparing for this day and there are no major surprises. Second-guessing affordability checks has cost the industry around 20 per cent of business, so I do hope we can find a technology-first solution to this. I really hope a line can be drawn now and the UK can get back to seeing betting as the fun and brilliant past time that it is”.
Joe Ewens, Senior Gambling Industry Analyst at Vixio Regulatory Intelligence said: “Despite numerous delays, today’s publication of the government’s Gambling Act white paper only marks the end of the beginning for gambling reform in the UK. While the industry will be broadly happy that affordability measures are less intense than originally feared and gambling advertising is almost untouched, they have reason to fear what’s still to come."