Government Publishes Gambling Reforms
The British government has published its long-awaited white paper detailing gambling reforms. The overhaul of the 2005 Gambling Act aims to protect vulnerable consumers from gambling harms in the age of the smartphone. The proposals will be subject to a round of consultations and it is expected that the changes will be in place by mid-2024.
The white paper outlines a variety of industry reforms, including a statutory levy for operators, stake limits for online slots and the creation of an ombudsman.
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Fit for the Digital Age
The government has published its white paper on gambling in the biggest shake-up of regulation that the industry has faced for almost twenty years. New reforms aim to make gambling safer for consumers and protect young and vulnerable people from harm. It had been widely accepted that gambling legislation was no longer fit for the digital age.
The publication of the white paper marks the most comprehensive set of reforms to the industry since the introduction of the Gambling Act in 2005. Former Prime Minister Boris Johnson pledged to review the act as part of his 2019 manifesto commitments. However, the review has been plagued by delays since its launch in December 2020.
Announcing the new policy paper, Culture Secretary Lucy Frazer explained why it was necessary to bring gambling laws in line with the digital age. Amongst the latest reforms are a levy on gambling operators to pay for treatment and education, improved player protections and online stake limits. Frazer stated:
“We live in an age where people have a virtual mobile casino in their pockets. It has made gambling easier, quicker and often more fun, but when things go wrong it can see people lose thousands of pounds in a few swipes of the screen.”
The new rules aim to strengthen the safety net and support the government in its long-term plan to help build stronger communities. The Culture Secretary was keen to point out that the industry reforms are designed not to infringe upon the millions of people who enjoy gambling safely.
The white paper and its proposals follow a call for evidence and are based on nearly 16,000 written submissions received by the Department for Culture, Media and Sport. They build upon a number of reforms introduced in recent years, including a ban on the use of credit cards in gambling, strengthened age verification checks for online betting and a cap on the maximum stake for fixed-odds betting terminals at £2 per spin.
Extensive Reforms
The newly published policy paper, titled ‘High stakes: gambling reform for the digital age’, details several significant changes for the industry to navigate. The Gambling Commission is set to get tougher powers to target black market operators through court orders. The regulator will work with internet service providers to remove and block illegal gambling sites.
Much of the legislation is targeted on reforming online gambling. New stake limits for online slots games will be brought in, capping stakes at between £2 and £15 per spin. The government has promised to consult on measures to provide greater protections for adults between the ages of 18 and 25. Evidence shows that this age category is at heightened risk of harm.
Frictionless player protection checks will protect those deemed to be most at risk of harm before unaffordable and harmful losses are incurred. Rules will be put in place to prevent bonus offers from harming vulnerable people. This could include analysis of how free bets and spins are constructed and targeted.
Loopholes will be closed to prevent under-18s from gambling online or with cash fruit machines. This will include bringing football pools in line with National Lottery play for over-18s only. A new industry ombudsman will be set up to help deal with disputes. It will be tasked with ruling on redress in instances where customers suffer losses due to the failure of operators in their player protection duties.
A statutory gambling operator levy has been promised to ensure that operators contribute towards funding treatment services and research, including through the NHS. At present, the size of contributions is not mandated. As a result, not all gambling firms pay their fair share, with some contributing as little as £1. A review of the existing horserace betting levy will also be carried out, to ensure that racing continues to thrive.
Minister for Public Health, Neil O’Brien has welcomed the reforms outlined in the white paper, describing them as a huge step towards protecting people from the damaging impacts of gambling. He stated that a statutory levy will help problem gamblers to access the right care at the right time. The government has committed to providing NHS gambling addiction treatment clinics in all regions across the country.
Industry Reacts to Changes
Since the publication of the white paper, it has garnered a largely positive reaction from industry officials and campaigners. The Betting and Gaming Council, which represents the UK’s casinos, bookmakers and online operators took the opportunity welcome the incoming reforms. Speaking on behalf of the organization, CEO Michael Dugher said:
“Our members generate £7.1 billion for the economy and raise £4.2 billion in tax every year, and the measures announced today should protect jobs and sustain that vital contribution, while also building on our own work to drive world-leading standards in safer gambling.”
Continuing, Dugher stated that he was pleased that the government had rejected proposals from ‘anti-gambling prohibitionists’ for intrusive affordability checks and bans on advertising, sports sponsorship and consumer promotions. He claims that such measures would harm sports, threaten jobs and drive consumers towards black market operators.
Operators including Entain and Flutter Entertainment have also praised the reforms outlined in the white paper. Entain CEO Jette Nygaard-Anderson welcomed the clarity that the white paper will bring to the industry and to customers. She described the review as an important step towards having a robust regulatory framework that is fit for the digital age.
However, some of the curbs do not go as far as campaigners had hoped. Labor MP Carolyn Harris who chairs the all-party parliamentary group on gambling-related harms has called for the proposals to be instated immediately, without further consultation. She said that the industry has had its own way for far too long.
Liz Ritchie, co-founder of the charity Gambling with Lives said that the reforms indicated that campaigners had ‘won the argument against a powerful gambling lobby’. Despite this, she believes that much more needs to happen to combat gambling harms and reign in the industry
