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Spend limits considered as gambling review is launched by government

Proposals for radical reform of gambling regulation will be laid out by the UK government
Proposals for radical reform of gambling regulation will be laid out by the UK governmentCredit: Getty Images

Proposals for radical reform of gambling regulation which promise to reshape the betting and racing industries will be laid out on Tuesday by the UK government.

Online restrictions, marketing, stake and spend limits, advertising and promotional offers and extra protections for young adults will be examined by the Department for Digital, Culture, Media and Sport.

Among the potential reforms are stringent new affordability checks for gamblers, with the Gambling Commission carrying out a consultation which has raised the possibility that overall monthly online gambling losses might be capped at £100 unless a customer could prove they could afford to lose more.

Analysts at Regulus Partners have previously estimated such action could result in an "immediate" reduction of levy income of around £20 million, with a further impact on media rights income.

British racing's finances could also be hit further should the streaming of sports events by bookmakers be curbed, while a ban on sponsorship and advertising by gambling companies might also jeopardise mainstream television coverage of the sport.

BHA chief executive Nick Rust welcomed the long-awaited Gambling Act review but said reforms needed to be based on evidence and focused on those at risk.

Ministers promised the review, which was a Conservative Party manifesto pledge last year, would be "comprehensive" and "fit for the digital age". More details are set to be revealed on Tuesday with the launch of a 16-week call for evidence.

Culture secretary Oliver Dowden said: "This comprehensive review will ensure we are tackling problem gambling in all its forms to protect children and vulnerable people. It will also help those who enjoy placing a bet to do so safely."

Nick Rust: government has 'good understanding' of racing's economic contribution
Nick Rust: government has 'good understanding' of racing's economic contributionCredit: Edward Whitaker

Rust said British racing supported the government's intention to update gambling legislation. He said: "Racing and the betting industry, through our unique partnership, continue to work together to reduce even further the low levels of problem gambling associated with our sport.

"Any changes that result from the review should be based on evidence and focused on those at risk. The government has a good understanding of the contribution made to the economy, especially in rural Britain, by the £4 billion racing industry and we look forward to a balanced set of proposals."

Gavin Kelleher, gaming and leisure analyst with stockbrokers Goodbody, said it would be likely that spend and stake limits would be considered given they have been introduced in other countries.

He added: "The devil is in the detail and the detail could be a long time coming. It's a number of months before we will hear anything but I think everything is on the table under the review.

"When you hear people talk about things like mandatory spend or deposit limits per month that's quite a large potential impact to the sector. At what level are these limits set and how will players react?

"It all comes down to whether the industry can convince the government and the stakeholders that they are doing enough to restrict problem gambling."

Gambling industry figures welcomed the launch of the review and also emphasised the relationship between betting and sport, especially horseracing.

Conor Grant, chief executive for Flutter UK & Ireland, the parent company of Paddy Power and Sky Bet among others, said it was looking forward to working with the government on the review.

He added: "We also want to work with the racing industry as a key stakeholder in this process, recognising the special relationship between our two industries and the potential for legislative change to have a significant impact on racing and its fans."

Michael Dugher: called for economic contribution of the industry to be taken into account
Michael Dugher: called for economic contribution of the industry to be taken into account

Those views were echoed by Michael Dugher, chief executive of the Betting and Gaming Council. He argued the review should take into account the economic contribution of the industry which he said employs more than 100,000 people and pays more than £3.2bn to the Treasury in tax.

Dugher added: "In addition, horse racing receives over £350 million per year through the horse racing industry levy, media rights and sponsorships, while betting companies spend over £40m a year on the English Football League and its clubs."

Parliamentary campaigners for gambling reform also welcomed the announcement.

Labour MP Carolyn Harris, the chair of the Gambling-Related Harm All Party Parliamentary Group, described it as a "once in a generation" opportunity to improve regulation.

She added: "Our current legislation is analogue legislation in a digital age, online gambling is unregulated in many areas and mandatory deposit limits and affordability mechanisms are essential."

Carolyn Harris MP: 'Her language has the tones of a McCarthy witchhunt'
Carolyn Harris MP: Review a 'once in a generation' opportunityCredit: GambleAware

The Peers for Gambling Reform group voiced similar sentiments, although it insisted action could be taken before the conclusion of the review.

Its chair, Lord Foster of Bath, added: "A number of reforms should be taken alongside the review to ensure that early action is taken where possible. It is time for action."

The powers of the Gambling Commission are also set to be covered by the review. The commission has been the subject of strong criticism from Westminster this year, the House of Commons Public Accounts Committee describing it as a "torpid, toothless regulator".

A Gambling Commission spokesperson said it had already made progress on protecting consumers, including banning gambling with credit cards.

They added: "We’ve made it clear to gambling operators that we will continue to work at pace to take action to protect consumers while the review of the Gambling Act is under way."

The government has also announced it is to raise the minimum age for playing the National Lottery from 16 to 18 from October 2021.


What happens next

>> The call for evidence will run for 16 weeks and will close on March 31 2021, a longer period than usual due to the Covid-19 crisis.

>> Following the call for evidence, the government will consider the responses with a further consultation likely later in 2021.

>> Any legislation required to change gambling regulations might not receive parliamentary scrutiny until 2022.

>> The 2005 Gambling Act stemmed from the Gambling Review report published in 2001 by a review board chaired by Sir Alan Budd. However, the 2005 act did not come into force until September 2007.


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Bill BarberIndustry editor

Published on 8 December 2020inNews

Last updated 11:04, 8 December 2020

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