Government urged to issue balanced white paper after worrying report emerges

Compulsory affordability checks expected to be proposed following the UK gambling review will threaten the regulated betting and gaming industry, according to a new report by leading accountancy firm Ernst & Young.

Research for the Betting and Gaming Council (BGC), the industry body representing major bookmakers, found the British gambling sector remained robust despite the financial impact of the coronavirus pandemic and the ongoing challenges linked to the energy and cost of living crises.

Affordability checks are expected to feature in the long-awaited UK gambling review white paper and the report found the implementation of tougher financial checks by BGC members in anticipation of them has led to reduced revenues.

The report valued the contribution of BGC members to the economy at £7.1 billion, with an annual contribution to the Treasury of £4.2bn, despite online gross gambling yield having declined since mid-2021.

It argued this "probably reflected the reopening of physical venues, the introduction of online affordability checks and the drop in real household incomes", and warned the decline of the regulated betting and gaming industry could push people towards the black market.

"Our members pump billions into the economy, support the Treasury with more billions and support more than 100,000 jobs," said BGC chief executive Michael Dugher. "However, this contribution is never guaranteed. This industry needs to thrive if it is to maintain its status as a world leader.

"As ministers consider the regulatory framework, they should stop and think, and ensure their decisions support a sustainable future. This is a sector that's ready to invest: on hard-pressed high streets through bookmakers, in tourism and hospitality through world-class casinos and online where our tech giant members are looking to increase the number of apprentices they hire.

"We urge the government to find an evidence-led, balanced white paper that protects the vulnerable, allows the vast majority who bet safely to continue to do so, and crucially allows business to thrive."

The findings of the gambling review are expected to be published in the coming weeks, but the prospect of strict affordability checks remains a point of contention.

"Without government clarity on affordability checks, our members are concerned they are driving frustrated customers to the unsafe, unregulated black market," added Dugher.

"These sites have none of the safer gambling tools employed by our members, do nothing to protect young people, don’t invest anything in the sports we love like horseracing, rugby, darts and football, and crucially don’t contribute a penny in tax."

Read more:

'There's a lot at stake' - wait goes on two years since gambling review launch

Implementing gambling reform - can the regulator be trusted to play fair?

Minister wants gambling review white paper 'out of the door' in next few weeks

Intrusive affordability checks would be a disaster - but proponents don't get it

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