Leaks and undercover stings - what we have learned about the white paper in the last week

As the countdown continues to the expected publication of the government's gambling review white paper, the industry has found itself in the headlines for all sorts of reasons in the last fortnight.

In the last week there has been a number of what looked to be well-briefed news stories in the press outlining what is expected to be among the government's proposals for reform, while the sector's relationship with parliament came under the spotlight through a sting by The Times on Conservative MP Scott Benton.

Here are some of the things we have learned over the last few days.

Campaigners won't be satisfied

Whatever the white paper looks like when it finally does appear, it looks odds-on the words 'watered down' will feature heavily in the reaction.

It has been flagged up for a while that the stakes for online slots would be cut to mirror those found in bricks and mortar establishments, and The Sun reported that those under 25 would indeed only be allowed to stake a maximum of £2. However, the potential upper limit for older gamblers of £15 is much higher than the £5 that had been floated and is likely to come under criticism.

Similarly, the possibility that gambling sponsorship on Premier League football shirts may still be allowed on sleeves rather than disappear altogether is unlikely to mollify campaigners if it comes to pass.

Benton's claim to undercover reporters from The Times, that the replacement of former gambling minister Chris Philp had been a turning point for the industry and "we’re getting the vast majority of what we wanted", will also reinforce claims the white paper has been watered down.

The white paper was always going to be a staging post rather than a conclusion on gambling reform and those calling for more radical changes are not going to go away as proposals become subject to consultation.

Billion pound impact?

According to The Sun, which has seen a letter from culture secretary Lucy Frazer to cabinet colleagues, the measures being proposed by ministers will result in a reduction in industry gross gambling yield (GGY) of between three and eight per cent.

Assuming that industry figure includes lottery GGY, then the monetary impact comes to between approximately £400 million and £1.1 billion.

Frazer was quoted as saying: “I am confident that the societal benefits in harm reduction outweigh the projected costs to industry, and that much of the drop in online revenue will be the foregone income from people gambling unaffordably."  

British racing, among others, will be hoping that is the case.

Levy disagreement

A statutory levy to pay for problem gambling research, education and treatment has been called for by campaigners for many years and it would appear that they have got their wish.

The sector has accepted that the current voluntary system will be replaced by a new levy that could raise an estimated £140m if the expected one per cent rate was applied across the whole industry, including lotteries.

However, objections to a switch to a mandatory levy came from an unexpected source last week in an article in the British Medical Journal claiming it would "do more harm than good".

That is not to say the gambling industry has suddenly found friends in the public health sphere. The BMJ article claims a statutory levy "would not force the gambling industry to cede control of the narrative", nor that it would guarantee independence of research and that it would also deflect from even stronger regulation.

Sting in the tail?

Speaking of levies, there appeared to be good news for British racing in The Sun's reporting with the news that there would be "a new review to ensure proper funding for the sport".

The mention of horserace betting facing higher taxes was presumably a reference to the levy, which British racing's leadership wants reformed to increase the sport's income. The levy was due to be reviewed by 2024 anyway, but the government might be able to bring that forward by a few months at least.

On the face of it that is good news but there might be a sting in the tail. The concern would be that if the government is taking action over the levy that racing might be losing out as a result of actions elsewhere in the wider gambling review, such as affordability checks.

World Pool turnover rises in first quarter 

World Pool turned over a total of HK$1.27 billion (approx £130.1 million/€148.3m) across its five fixtures during the first quarter of 2023, a 70 per cent increase on the same period last year.

Michael Fitzsimons, executive director of wagering products at the Hong Kong Jockey Club, said: “World Pool continues to grow year on year and results from the first quarter have been excellent, with growth across all fixtures as well as strong turnover at new fixtures that were added this year.

Royal Ascot: produced strong turnover figures for World PoolCredit: Bryn Lennon (Getty Images)

"We now look forward to returning to the UK for a busy second quarter period, which includes all five days of Royal Ascot, where we have seen our strongest turnover figures in the past."

World Pool will next be in operation for Qipco 2,000 Guineas Day at Newmarket on May 6, one of eight UK fixtures in the second quarter.

Entain buys media company 365scores

Entain has bought sports media business 365scores for £120 million, plus up to £8m in contingency payments.

The parent company of Ladbrokes and Coral said the acquisition would provide customers with "a broader offering of interactive content and experiences".

It added: "The acquisition unlocks further growth opportunities and supports our global strategic ambitions."

TGP Europe hit by Gambling Commission penalty

White label gambling operator TGP Europe Limited has been hit with a £316,250 penalty by the Gambling Commission for anti-money laundering (AML) and social responsibility failures.

The operator, which runs 19 websites, will also receive an official warning and have conditions added to its licence setting out action it must take to ensure thorough due diligence checks are conducted.

Social responsibility failures included allowing customers to continue to gamble after hitting multiple safer gambling alerts without intervention, while AML failures included not adequately considering and mitigating the money laundering risks posed by their business-to-business relationships.

GambleAware doubles funding for rebranded network

Problem gambling charity GambleAware has revealed it is to double funding for its newly rebranded National Gambling Support Network.

Formerly the National Gambling Treatment Service, the network will have a specific focus on early intervention and adopt a "regional-first approach".

GambleAware chief commissioning officer Anna Hargrave said: "By taking a regional-first approach we hope to create new opportunities to work with other local services and government agencies."