Gambling Minister Speaks on Review
Gambling Minister Paul Scully has given a speech at GambleAware’s annual conference. Addressing the challenges facing the white paper, he revealed that it is hoped to be published in the coming weeks. The Gambling Act Review was launched two years ago, and has been delayed due to factors including the coronavirus pandemic and disruption in the Conservative party.
When it was first launched in December 2020, it was expected that the Gambling Act Review would be completed within a year. ©Pixabay/Pexels
GambleAware Conference
As Minister for Tech and the Digital Economy, Paul Scully is the latest minister to find himself at the helm of the Gambling Act Review. In fact, he is the fifth minister to hold the job title since the review was launched two years ago. After a month in the role, Scully took the opportunity to offer an update on the progress of the review’s white paper at GambleAware’s annual conference on December 7th.
He described the review, which has been beset with delays since its launch in December 2020, as a ‘challenging brief’. The review seeks to bring the UK’s gambling legislation up to date and ensure its relevancy in the digital age. Some campaigners have raised concerns that it may not go far enough to protect consumers, while others have asserted that too many restrictions could encourage gamblers to seek out black market operators.
In his speech, Scully said that on taking on his new role he had made it a priority to meet a broad range of people. These included clinicians, parliamentary groups, charities, leaders in the gambling industry and people who have personally experienced gambling harms. Through this experience, he was able to gain valuable insights into the lasting effects of gambling harms.
Scully continued, explaining how the Gambling Act Review seeks to take a wide-ranging look at evidence on gambling and its regulatory framework. The DCMS is taking into account health issues, including harms, addiction and problem gambling, in balance with methods of ensuring that regulation is fair and proportionate.
While it is imperative that the Gambling Act Review address gambling harms, Scully was keen to point out that new legislation should not come at the cost of those who participate in gambling as an enjoyable pastime.
At the same time, the gambling landscape is very different to how it was in 2005, when the current legislation was first introduced. Betting and online casino products are now easier than ever to access online and on mobile devices. The protections outlined in the 2005 Gambling Act are widely accepted is insufficient in the digital age.
New Legislation
The recent Health Survey for England found that 246,000 people were considered problem gamblers. Further to this, 1.6 million people are considered to be at risk of suffering harm. Gambling harms can have devastating effects on those impacted, including financial problems, relationship breakdowns and mental health problems.
The DCMS is working closely with the Department of Health and Social Care to ensure that new legislation enables people who are experiencing difficulties to be spotted early, before lasting damage is done. Scully emphasized the importance of collaboration, communication and consistency in delivering protections to combat gambling harms as a public health issue.
Those wondering when the highly anticipated white paper will be published have not been given a firm date yet. Delivering the speech, Scully stated that the department is keen to publish it as soon as possible. However, it is important that ministers get it right.
In the meantime, considerable steps have been taken to make gambling safer for consumers in the UK. In 2020, a ban was imposed on gambling with credit cards to prevent people from gambling with money that they don’t have.
In 2021, the Gambling Commission introduced strict measures on how online slots and casino games are designed, to make them safer for players. Features that sped up play, disguised losses as wins and gave the illusion of control over an outcome were banned. Reverse withdrawals were also banned, preventing players from gambling with money that they have already asked to withdraw.
Rules on how operators are required to identify signs of harm and interact with customers were reinforced, and restrictions on the provision of online casino VIP schemes were tightened. As a result, there has already been a significant reduction in the number of VIPs. The Commission will continue to monitor the impact of these changes.
Financial Penalties Rise
This year has seen a considerable rise in the number of financial penalties dished out by the Gambling Commission. In a bid to step up its enforcement activity, the regulator issued a total of £44.6 million in monetary charges to operators that breached its rules. Two of the largest operators were responsible for £26 million of that sum.
In August, Entain was handed a record fine of £17 million after an investigation uncovered serious social responsibility and anti-money laundering failures. In comparison, in the 2016/17 financial year, the regulator took action against three operators who paid £1.7 million over regulatory failures.
The increasing use of financial penalties to deter operators from breaching regulations is a global phenomenon. Worldwide, the total sum of charges levied against gambling firms so far this year has reached £105 million. However, some critics say that these fines are not high enough to alter the behavior of operators. Entain’s £17 million settlement is equivalent to a day and a half of the operator’s global earnings.
The Gambling Act Review aims to build on these changes and do more to ensure that the right protections are put into place for the digital age. Amongst the further measures being considered for inclusion in the upcoming white paper are curbs on advertising and new rules on front of shirt betting sponsorships in football. Closing the speech, Scully stated:
“We are committed to the Review and I am aware that delays to the white paper have been difficult. I am pleased to confirm that we are keen to publish it in the coming weeks. But I want to make clear that the white paper is not the end of our discussions on these matters. I look forward to further conversations about how we will bring its measures into effect.”
