Supporters of the long-awaited gambling reform were willing to send a message to the UK Government to say that the implementation of stricter control on the sector would bring more benefit to society.
In 2020 when a series of proposals for stricter reform of the UK gambling sector was unveiled, the industry did not welcome any of the releases made by the All-Party Parliamentary Group on Gambling-Related Harm, the Peers for Gambling Reform and the Social Markets Foundation. Each of the aforementioned organisations unveiled its proposals for new restrictions to be imposed on the sector. The suggestions ranged from some more extreme to softer regulatory measures and provoked the trade body of the UK gambling industry – the Betting and Gaming Council – to respond.
The report, called “Gambling Harm – Time for Action” made an impression that it aimed to be less punitive towards the sector, while at the same time establish regulatory conditions that would lead to the reduction of gambling-related harm. However, the following response, which Nera Economic Consulting made on the group’s behalf, felt as if the campaigners wanted to be less punitive towards the gambling sector, with the report setting out viable suggestions for reducing the possible negative consequences from gambling.
Nera Economic Consulting further provided a costing of the reforms proposed in the last-year report, along with a conclusion that that stricter measures, including affordability checks, stake limits and suspension of direct sponsorship would harm industry profits by between £696 million and £974 million on an annual basis.
Anti-Gambling Campaigners Insist on Stricter Regulation of the Sector
The chair of the Peers for Gambling Reform – Lord Foster – explained that the sector’s profit estimates of £697 million included in the report covered only the profits of Flutter Entertainment, Entain, William Hill, bet365 and Camelot. As he shared, the actual figure for all players in the UK gambling sector is probably significantly higher.
Lord Foster explained that the anti-gambling campaigners believed there was good evidence that stricter measures are likely to reduce the gambling operators’ profits, but the companies will still be able to make a profit.
According to the claims made in the report, if the authorities manage to minimise gambling participation rates and reduce gambling-related harm, other entertainment options and the entire economy of the country would feel the effect. The report estimates that up to 30,000 new jobs could be created as a result, with £400 million in employee earnings.
The report also claimed that the costs paid by the UK Government for the treatment of problem gamblers and people suffering from gambling-related harm range from £270 million and £1.17 billion. So, Lord Foster explained that the debate should be expanded beyond the Department for Culture, Media and Sport (DCMS) to other units of the economy. As he noted, the Department of Health and Social Care, as well as the Department of Education have an important role to play when it comes to the ongoing review of the 2005 Gambling Act.
- Author
Daniel Williams
