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The government recently launched its review into gambling laws in the UK, its first in nearly twenty years. The review will examine whether the Gambling Act 2005 is still fit for purpose in the digital age. Specifically, it will look into the impact of gambling advertisement, potential restrictions, age and online stake limits, as well as the Gambling Commission’s role and powers.
This review follows a report on gambling harms by the House of Lords Select Committee on the Social and Economic impact of the Gambling Industry, which called for “urgent action” to address the harms caused by gambling.
A long time in the making, this review could potentially lead to radical changes in the industry. As a result, many have emphasised the importance of its impartiality and warned against any undue influence emanating from the industry.
Back in July 2020, the House of Lords Select Committee on the Social and Economic
Impact of the Gambling Industry, published a report on gambling harms in the UK. It revealed some startling figures. According to the report, over 300,000 people in the UK are problem gamblers, 55,000 of which are children aged 11-15. On top of this, on average, one problem gambler takes their life each year.
Of course the impact of gambling harm does not stop there. For every person affected by gambling addiction, an additional six people are adversely affected through family breakdowns, crime, financial loss, and loss of life. This totals two million people.
A salient issue that the report highlights is successive governments’ failure to keep up with the “revolution” of the UK gambling sector. The report also emphasised the dangers associated with the industry capitalising on the “laissez faire” regime. Subsequently, it made a wide range of recommendations, calling for immediate action. Some of these recommendations included:
Speaking about the need for government action, Lord Grade of Yarmouth, Chair of the Committee, said: “Urgent action by the Government is required. Lax regulation of the gambling industry must be replaced by a more robust and focussed regime which prioritises the welfare of gamblers ahead of industry profits”.
Responding to the committee’s report, on 8 December, the government welcomed and supported many of its recommendations. It also shared concerns over marketing affiliates and affordability checks. In relation to the latter, the government noted that in line with committee recommendations, the Gambling Commission has begun consulting on proposals “to strengthen requirements on licensees to identify and interact with customers who may be at risk of harm”.
Delivering on its manifesto pledge, on 8 December 2020, the government finally announced its long-awaited review into the Gambling Act 2005.
The last review on the gambling industry was conducted almost two decades ago. Moreover, while it served as an appropriate check prior to the technology revolution, it did not account for the rise of social media, smartphones and AI.
The Act itself specifically outlines that gambling should be fair and transparent and not associated with illegal activity. It also outlines that protection against exploitation should be delivered to children and those who are vulnerable. Alongside these principles, the Act also created a unified industry regulator, the UK Gambling Commission (UKGC).
That being said, these days online gambling reigns supreme, and the current legislation fails to account for its increased usage. According to the Gambling Commission, while in 2012, only 14% of people took part in online gambling, by 2019 this had increased to 21%.
Accompanying this surge in online gambling, gambling advertisement has also increased “exponentially” since 2005. The gambling industry currently spends £1.5 billion on advertising each year. Regulus Partners even found that 80% of gambling marketing activity is spent online, with companies spending five times more on online advertising than television advertising.
More worryingly, according to the committee report, a total of 60% of the industry’s profits comes from the 5% who are “already problem gamblers, or are at risk of becoming so”.
Now, the government review will analyse nearly every area of gambling law, touching on everything from game design, player safety, advertisement, stake and spend limits and the role of the UKGC
Commenting on the review, Secretary of State for Digital, Culture, Media and Sport, Oliver Dowden, said: “Whilst millions gamble responsibly, the Gambling Act is an analogue law in a digital age. From an era of having a flutter in a high street bookmaker, casino, racecourse or seaside pier, the industry has evolved at breakneck speed”.
He added: “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. This builds upon our clear track record of introducing tough measures to protect people from the risk of gambling harm – banning the use of credit cards, launching tighter age verification checks”.
Carolyn Harris, Swansea East MP and Chair of the All-Party Political Group on Gambling Related Harm, who has been campaigning for a change to gambling laws for years, said: “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. Gamblers need an Ombudsman to support redress and statutory levy must be put in place to support research, education and treatment. The Regulator must also be overhauled. This is a once in a generation chance to improve much needed gambling regulation in this country and change cannot come soon enough”.
If implemented, the potential changes discussed in the review could have drastic legal implications for the industry. Already, the government has announced that from October 2021, age restrictions on the National Lottery will rise from 16 to 18.
Elsewhere, one of the significant proposals that will be considered in the review is the potential implementation of an online stake limit, and a limit on monthly losses. This affordability check would help to ensure that players are safeguarded against spending more than they can afford.
Another key area that will be assessed is the gambling industry’s relationship with sport, and whether sports sponsorship should be banned. At present, 75% of Premier League teams are sponsored by betting companies. Meanwhile, for Championship teams, this figure is a startling 87%.
Commenting on these potential restrictions, the English Football League (EFL) claimed if implemented, the changes could have serious financial consequences for football teams. In a statement it said: “With over £40 million a season paid by the sector to the league and its clubs, the significant contribution betting companies make to the ongoing financial sustainability of professional football at all levels is as important now as it has ever been, particularly given the ongoing impact of the Covid-19 pandemic which is leaving many of our clubs living on a financial knife edge”.
Meanwhile, Michael Dugher, Chief Executive of the BGC, stressed the importance of achieving a balance. “The review must also take account of the huge economic contribution made by the betting and gaming industry, which employs over 100,000 people. This includes £8.7 billion a year in Gross Value Added and over £3.2 billion to HM Treasury in tax,” he said.
It is undeniable that stricter regulations are required to reign in the industry, which is arguably out of control and has been for quite some time. The review has the power to change the way that UK gambling functions for the better. That being said, to achieve this it must be impartial, transparent, and not influenced by vested interests. However, considering it took nearly a decade to implement the recommendations from the last review, it could be some time before we see any real change.
The review’s call for evidence will run for 16 weeks and will close on 31 March 2021.
Madaline is a vegan journalist, writer, and editor specialising in sustainability, politics, law and climate action. Her work puts law under the microscope and is informed by rigorous investigation and research.
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