Long wait for gambling review white paper may be drawing to a close

Parliament went into recess on Thursday without any sign of the government's proposals for gambling reform appearing, but indications are growing stronger that the long-delayed white paper will finally be published next month.

There is speculation that the 'write-round' process, in which other government departments are informed of policy and are able to give feedback, has begun and that the white paper will be published after MPs return to parliament on April 17.

The government launched its review of the 2005 Gambling Act with a call for evidence in December 2020 pledging to make regulation of the industry "fit for the digital age". It closed the following March having received 16,000 responses.

However, the government's proposals for reform have subsequently been the subject of continued delays due to the political upheaval of recent months, with three prime ministers, four culture secretaries and six ministers responsible for gambling having been in place since the review began.

Stuart Andrew: "We are finalising a white paper setting out our conclusions and next steps"

The current gambling minister, Stuart Andrew, gave an update on the progress of the review in a reply to a written question from Labour MP Simon Lightwood this week.

He said: "We are finalising a white paper setting out our conclusions and next steps and will publish it in due course."

It had been thought that if the white paper was not published by the Easter recess then it would therefore not appear until May due to the political calendar.

Parliament returns during the period known as 'purdah' before the local elections in England on May 4, during which time new policy announcements are not traditionally supposed to be made.

However, it is understood that the Department for Culture, Media and Sport does not believe that purdah applies to the white paper as gambling reform was part of the government's election manifesto.

That leaves a short window for the white paper to be published before parliament rises for the May Day recess on April 27, followed by a another recess for the coronation in early May.

The issue of gambling regulation has been pushed into the headlines this week after the Gambling Commission hit William Hill with a record £19.2 million penalty for what the industry regulator described as "widespread and alarming" social responsibility and anti-money laundering failures.

Proposals expected to be unveiled in the white paper include the controversial subject of affordability checks on punters, which are already believed to be costing British racing tens of millions of pounds in revenue.

Gambling advertising and sports sponsorship may be covered, although the Times newspaper has reported that Premier League football clubs are set to agree a voluntary ban on gambling companies advertising on the front of their shirts.

A statutory levy on gambling operators to pay for research into and the treatment of problem gambling, and lower stakes for online slot games to match those found in land-based gambling, are also expected to figure.

Andrew said in a letter seen by the Racing Post this month that the publication of the white paper would be followed by further consultations "as policy details are refined".

How the white paper might affect British racing

Affordability checks

Affordability checks for punters are expected to figure in the white paper and are the area about which there is most concern for British racing's leadership.

Campaigners have called for the imposition of such checks at levels as low as a monthly loss of just £100.

In a recent submission to a separate parliamentary inquiry into gambling regulation, the BHA warned that blanket checks would be "highly damaging" and "financially devastating" to the sport".

However, bookmakers have already put intrusive affordability checks in place, under which punters have been asked for personal information such as bank statements, given the regulatory pressure they are under from the Gambling Commission.

It is claimed those checks are already costing British racing tens of millions of pounds in lost revenues.

Earlier this year a previous gambling minister Paul Scully said the government favoured less intrusive "financial risk" checks, while a letter from the current minister Stuart Andrew said that proposals in the white paper would be "proportionate and targeted to prevent harm, impacting a small minority of customers".

Any proposals on affordability are set to be followed by a further consultation period, and the concern is that the checks already in place will continue while the issue remains in limbo.

Sports sponsorship and marketing

Campaigners have called for all gambling sponsorship of sport to be outlawed, along with advertising of gambling at or around sports grounds, which would heavily impact British racing.

However, the relationship between betting and horse and greyhound racing has been recognised, with the parliamentary campaigners saying there could be 'carve outs' which would allow gambling sponsorship for them.

Reports suggest that a voluntary ban on shirt sponsorship by Premier League football clubs would satisfy ministers in this area.

Television advertising

Gambling advertising on television is another area in which campaigners have called for a ban, and it is not clear whether the carve out for sponsorship mentioned by politicians would apply here.

A television advertising ban could be devastating for British racing as the ITV deal to broadcast the sport on mainstream television would be undermined, as would the other racing channels.

However, there have been no indications yet that the government is looking to go down this route.

Levy reform

Bringing forward levy reform had been expected to be included in the white paper when it was due to be published in July last year, before prime minister Boris Johnson's resignation caused another delay.

British racing's leadership has been pushing for the levy system to be extended to include bets placed by British punters on foreign racing, which it has been estimated could add another £30m – or close to an extra third – on yield. It also hopes the levy could be switched to a turnover model from one based on gross profits.

The government has already pledged to review the levy by 2024, but it is possible that a review could be brought forward by a few months.

Read these next:

Government faces call for immediate 'light-touch' affordability checks following William Hill penalty 

How affordability checks kept a successful Cheltenham owner from some of his £100,000 winnings 

Minister claims gambling proposals will impact only 'a small minority' 

The Front Runner is our unmissable email newsletter available exclusively to Members' Club Ultimate subscribers. Chris Cook, a four-time Racing Reporter of the Year award winner, provides his take on the day's biggest stories and tips for the upcoming racing every morning from Monday to Friday. Not a Members' Club Ultimate subscriber? Click here to join today and also receive our Ultimate Daily emails plus our full range of fantastic website and newspaper content.