Wait Continues for Reform of the UK Gambling Industry

2023 has arrived and we’re still no nearer to knowing what the UK government has in store for the gambling industry. The Gambling Act 2005 needs updating to deal with the digital age but the White Paper that will reveal what reforms are on the way continues to be delayed.

It was back in 2019 that the last UK General Election was held. The Conservative Party manifesto pledged to reform the gambling laws but movement on the issue has been to say the least.

A long time was spent gathering evidence into the problems of the UK gambling industry. Last year saw the White Paper on the reform of the gambling industry delivered to Downing Street. However, this was at the time when chaos was breaking out in the UK government.

Prime Minister Boris Johnson had other things on his mind. He was spending more time reading resignation letters and eventually penning one of his own. The White Paper on gambling reform wasn’t at the head of his to do list.

As the long drawn out Conservative party leadership election (one in which both the final candidates would later become leader), there was a halt on new policies. This meant yet more delays to the publication of the White Paper. More time was being spent gambling on who might win the election or when Liz Truss would leave her job.

Neither Liz Truss or Rishi Sunak have shown a great deal of interest in speeding up the release of the White Paper. We know that sooner or later (most likely later) the contents of the White Paper will be released. There has been some movement with an inquiry taking place into the UK gambling industry.

While the wait has continued, the gambling industry has been subjected to some stricter rules by other bodies. The UK Gambling Commission (UKGC) has become increasingly tougher on the online casino platforms they have given licences.

They fully expect them to pay attention to the behaviour of their customers. That’s particularly to those who suddenly start increasing the amounts that they are wagering. Can they afford to do this and just where is the money coming from to place the bets?

Social responsibility and ensuring that money isn’t being laundered are two key areas where the UKGC will take action if they find failings. That has seen millions of pounds in financial settlements having to be made by gambling companies. Entain were ordered to pay £17 million and 888 Holdings £9 million.

It’s expected that when the contents of the White Paper are finally revealed, affordability checks are going to be a key measure. It’s far too easy for gamblers to lose track of how much they wager, particularly online.

This would be a controversial move with many believing they don’t need to be told how to spend their money. The Betting and Gaming Council (BGC) are against stricter affordability checks for all gamblers.

Their view is that the vast majority of gamblers do not have a problem. Why therefore should action be taken against them? Their biggest fear is that if such legislation was passed that it would drive gamblers onto the unregulated black market.

That’s something which has been seen in countries such as the Netherlands and Germany where stricter regulation of their gambling industry has been seen in recent years. Even in the USA where over 30 states have now made gambling legal, there are still huge amounts being wagered on the underground betting markets.

Seeing more gamblers playing at unregulated sites is the last thing that is needed. Those sites have no authorities that lay down rules and customer protection is not at the top of their priority list.

There has also been action taken by the Advertising Standards Authority in the past year. Sports stars and celebrities that might appeal to the younger generation are not allowed to appear in gambling adverts. It’s believed that this year might see gambling companies having to strengthen the messages they put on adverts. Not much movement is expected on banning football clubs being sponsored by gambling companies.

The wait for the White Paper therefore continues and 2023 is going to be an interesting and potentially worrying year for the UK gambling industry. We have had indications that it will be online gambling sites that will be mainly targeted as per CasinoGambler.co.uk, casino offers comparison site.

They of course weren’t around when the 2005 Act became law, thus it being outdated. There may be maximum stake levels introduced as was seen with gambling machines in High Street bookmakers in the UK. 

That has cost the gambling industry a fair amount of money since introduced. Implementing such rules at online gambling sites could again affect profits and that has to be a major worry. Gambling sites are already feeling the pinch during the cost of living crisis and more problems may be on the way when that White Paper is finally published.