Industry reaction as the UK’s gambling act review gets underway
The government has launched a call for evidence and early signs suggest operators have avoided a worst-case scenario
The hotly anticipated process to create a new UK gambling regulatory framework has finally sputtered into life, with the review of the 2005 Gambling Act now underway. When the original act passed 15 years ago, this writer was just entering the working world, full of great expectations.
UK operators have been waiting months in a different, more nervous, expectation, ahead of the government’s broad probe into the sector.
Industry leaders roundly welcomed the review, albeit after outlining a potential shopping list of areas it should address. William Hill CEO Ulrik Bengtsson said: “We look forward to engaging with the government throughout the review to ensure that any new regulations work alongside progress made by our industry and provide clarity and certainty for customers, operators and all those who work in the sector.
“It is important that the review is evidence-led, strikes the right balance between protecting the vulnerable and the continued enjoyment of the many tens of millions who happily place the occasional bet, as well as taking a critical look at the growing risks of the black market where there are no consumer protections,” Bengtsson added.
GVC hailed the act as a “timely and necessary” process, echoing prior government sentiments that it would bring the so-called analogue act into the digital age. “It is vital that the review recognises that betting is one of the nation’s favourite leisure activities, whilst also seeking to provide the highest possible level of protection when needed,” GVC warned.
“Our firm belief is that the use of technology is the best way of solving these complex challenges and that the review should reflect that. It should also seek to find the right balances in key areas such as advertising, sponsorship and the funding of education around responsible gambling.”
Meanwhile, Flutter Entertainment CEO Peter Jackson issued a far more sweeping challenge to Department of Digital, Culture, Media and Sport (DCMS), saying: “The gambling act review needs to be a moment of real change for gambling in the UK.
“Everything should be on the table and evaluated based on substantive evidence. We must seize this opportunity for change in the interests of those who want to see a safer, better future for everyone connected to gambling,” Jackson added.
Similar comments were received from the other side of the aisle from advocacy groups including the Gambling Related Harm APPG, which hailed the review as a “once-in-a-generation” opportunity to create a safer UK gambling environment. Simply put, the government has said the gambling act review is about “generating up to date legislation and a strong regulator with the powers and resources needed to oversee a responsible industry that offers customer choice, protects players, provides employment, and contributes to the economy”.
But what does the government hope to address? While there’s plenty of room for speculation, the call for evidence terms of reference document serves as a good barometer of the pressure points for ministers.
Nine questions are included concerning online protections for players on product design, deposit limits, white-label agreements and how data on gamblers is collected and used by operators and regulators to analyse player behaviour.
Many of the headlines in the run up to the review have focused on the issue of gambling sponsorships of sports clubs, and sponsorship does fall under the scope of the review. However, another potential advertising practice in the crosshairs relates to bonusing, with DCMS linking the practice to long-standing complaints surrounding VIP schemes.
Only four questions in the government’s call for evidence relate to issues surrounding advertising and sponsorship, compared to nine a piece for online protections for players and the Gambling Commission’s powers and resources. One potential olive branch extended to the industry comes in the form of three questions concerning the black market.
The government has already sought to address a key focus of the review by raising the National Lottery age limit from 16 to 18. However, scope may extend beyond underage individuals, with one question focusing on whether extra protections are required for those between 18 and 25.
The government will deliver its first white paper on the review in 2021, following the conclusion of the 16-week call for evidence. The coming year looks likely to become a watershed moment for the industry as it rebounds from Covid-19 and prepares for the review’s findings.