Gambling reform report claims dismissed as 'fantasy figures' by betting industry

Claims that widespread gambling reforms would lead to an increase in tax revenues and create thousands of new jobs have been dismissed as "fantasy figures" by industry representatives.

A new report commissioned by Peers For Gambling Reform (PGR) assessed the economic impact of reforms proposed last year by a House of Lords inquiry headed by Lord Grade, which included limits on online stakes and speed of play, affordability checks, a mandatory levy on operators to fund research and support, and a ban on sports sponsorship.

The report estimated that the financial impact of the reforms on the profitability of the gambling industry would be between £696 million and £974m annually.

However, it claimed betting industry profits were likely to exceed any financial costs associated with the reforms and that while they might reduce employment in the gambling industry, diverting expenditure by the public to other sectors could create up to 30,000 new jobs.

The proposed reforms would result in a net increase of £68-£87m in tax revenues rather than a net loss to the exchequer, the report said.

The report claims sports would not be significantly harmed by a ban on gambling sponsorshipCredit: Mike Hewitt

It also argued that sport leagues and teams were unlikely to be significantly harmed by a ban on direct sponsorship, with non-gambling sponsors filling any gap created. It did note that horse and greyhound racing would be exempt from any ban.

The report estimated the English Football league could lose £26m and the Rugby Football League could lose £500,000-950,000 in annual sponsorship revenue as a result of the reforms.

PGR chair Lord Foster of Bath said: "This report clearly sets out the economic benefits of reforming the gambling industry with tax revenues looking set to increase, jobs that could be created and a boost to funding for research, education and treatment.

"The evidence base and now the economic case for reform have now been made. This government now needs the resolve to get on with it."

The government is in the midst of a review of gambling legislation and Betting and Gaming Council chief executive Michael Dugher said the industry was confident "that ministers will make sensible decisions for the future that are based on serious evidence, rather than the fantasy figures contained in this report".

He added: "We are 100 per cent committed to change and we hope the White Paper will lead to a package of reforms that continue recent significant improvements in safer gambling."

Michael Dugher: claims in the report are 'economically daft'

Dugher described the idea that restricting betting would create more jobs as "economically daft and frankly for the birds".

He added: "An authoritative report earlier this year by EY [Ernst & Young] found that BGC members alone support 119,000 jobs, generated £4.5bn in tax to the Treasury and contributed £7.7bn for the UK economy in gross value added in 2019. This contribution will be vital as the government tries to repair the nation’s finances in the wake of the pandemic."

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Lord Grade: how we're trying to protect racing while tackling gambling harm

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