13 March 2024
Gambling Regulation

For many, gambling can be entertaining, but I recognise that it can also become a serious problem. In the new digital landscape, work is needed to get the balance right between protecting consumer freedoms and protecting people from harm.

The Gambling White Paper strikes this balance, proposing the most comprehensive reforms to the gambling sector since the Gambling Act 2005. Responding to the risks of online gambling, measures include: new stake limits for online slots games, associated with large losses and long sessions; background checks to protect those most at risk; plus rules to prevent bonus offers including free bets from harming vulnerable people.

There are proposals to increase protections for young people, who can be particularly vulnerable to gambling harms. This includes closing loopholes so that under-18s cannot gamble online, or via fruit machines which pay out cash.

Gambling industry regulatory systems will be strengthened so that they work in consumers’ interests. The Gambling Commission will get increased powers to tackle black market operators. A new non-statutory ombudsman will be created to deal with disputes where a customer suffers losses due to an operator breaching their social responsibility requirements.

I understand that the Government is working closely with the Gambling Commission and others to bring the measures from the White Paper into force as quickly as possible.

These proposals build on existing protections. The Gambling Commission has introduced rules to ensure operators robustly verify customers’ age and identity. Furthermore, in 2020, the Government and Commission bolstered protections, including banning credit card gambling and making participation in the self-exclusion scheme GAMSTOP mandatory for online operators.

 

Affordability Checks 

The Gambling White Paper, published in April 2023, outlines a balanced and proportionate package of measures, including a new regime of frictionless financial risk checks.

I know the Government is clear that the checks should not overregulate the gambling sector, should not unduly disrupt the millions of people who gamble without suffering harm, and should not cause unnecessary damage to sectors which rely on betting. I understand these will be implemented to protect those at the greatest risk of gambling harm and to stop potentially devastating and life-changing financial losses. These checks will be based on data sharing, and I have been reassured that the Government will not roll them out until it is certain they are frictionless.

Several roundtables have been held between the Government and representatives of industry, horse racing, and the Gambling Commission to discuss how to work together to ensure that these checks will be frictionless. Ministers have also stressed that the status quo, a host of industry-run checks, are often inconsistent, ad hoc and can be unnecessarily onerous, with customers having to manually provide reams of personal data to navigate a maze of different tick-boxes. As such, the Government has urged the Gambling Commission and industry to work together to mitigate the impact of these checks while a new, frictionless system is developed.

I understand the Government and the Gambling Commission have also been working closely with the Information Commissioner’s Office, credit reference agencies, and UK Finance to ensure new frictionless checks can be implemented in an effective but proportionate way. I am aware that the Government's is examining the role of pilots or phased implementation to ensure the checks are effective and work as intended.

 

Gambling Advertising

I appreciate your concern regarding advertisements for gambling. It is clear that gambling advertising can have a disproportionate impact on particular groups, such as people who are already experiencing problems, and that some aggressive advertising practices can exacerbate harms. Rules are already in place to prevent this, with the Gambling Commission’s new rules preventing direct marketing from being targeted to those showing strong indicators of harm, and the Committees of Advertising Practice recently implemented strengthened protections for adults vulnerable to gambling harm.

To build upon these protections, the White Paper announces new work from the Gambling Commission to give customers greater control over the direct marketing and offers they receive, and to ensure bonus offers are not constructed or targeted in harmful ways. The Government is also proposing that operators should go even further in their use of technology to target online adverts away from children and those who are vulnerable.

 

Gambling Addiction Treatment

Provision will also be made for gambling addiction treatment. Ministers recognise that change to the current voluntary system of contributions from industry to fund research, education and treatment is now needed, with evidence not all betting companies pay their fair share. A new statutory levy on gambling operators will secure long-term, independent funding for quality gambling research, education and treatment, including through the NHS.

 

Horseracing Industry

The Government recognises the unique contribution that horseracing makes to the UK’s sporting culture, and in particular, to the rural economy. Ministers and officials have held regular meetings with both the British Horseracing Authority and the Horserace Betting Levy Board, and I understand that the impact of the Gambling White Paper on the horseracing industry will be minimal. There will also be a review into the current horserace betting levy to make certain racing continues to be appropriately funded for the future.

 

Further detail re young people

Public Health England research has shown that younger adults can be particularly vulnerable to gambling harms. In light of this, the Government’s consultation on stake limits for online slots games will include options for specific protections for under 25s.