What does another missed deadline mean for the UK Government? Obviously, not much. After the British lawmakers failed to meet another target date for the release of its White Paper on the country’s gambling industry in March, no one really knows what is happening with the final product.
So far, there have been multiple rumours on the issues that could be included in the gambling White Paper but the perpetual silence from the Cabinet of Prime Minister Rishi Sunak is not doing much to bring clarity to the situation. Recently, a source with knowledge on the matter shared that the planned changes that could be unveiled as part of the country’s gambling industry review could result in nine-figure losses for the sector.
According to information that The Sun compiled and reported, there is a good chance the Government’s White Paper on gambling finally arrives by the end of April 2023. When this happens, the proposed changes could include some serious reforms of the sector that could cause a significant, 3% to 8% decline in its gross gambling yield (GGY), or at least according to a letter drafted by Luci Frazer, the latest Secretary of State for Culture, Media and Sport.
Currently, it is her Government Department that is heading the consideration of the gambling sector’s reforms, and Ms Frazer has confirmed that more restrictive actions could lead to GGY losses worth as much as £1.1 billion.
The Exact Gambling Regulation Changes Remain Unknown
According to analysts, the potential £1.1-billion gross gaming yield losses could be sustained only when all gambling spending, including lotteries, is taken into account. As confirmed by data provided by Statista, a Germany-based firm offering statistics and reports, as well as market, company, and consumer insights for various markets, lottery products currently have the highest gross gambling yield among all gambling services available on the market.
Reportedly, Ms Frazer has unveiled that the societal benefits of the regulatory changes, which would be mostly aimed at tackling gambling-related harm, outweigh the expected revenue loss. According to the Secretary of State for Culture, Media and Sport, much of the cited drop in online gambling revenue will occur as a result of people who would not be able to continue to gamble by reducing their activity. Previously, anti-gambling experts and campaigners have long argued that the majority of gamblers usually came from more disadvantaged areas and had lower incomes.
However, the expectations of the Department do not mean that the British gambling sector would remain unchanged because, from a historical point of view, businesses that start losing significant amounts of money usually turn to other markets in an effort to compensate for the difference.
Horse racing in the UK, which is currently among the largest and most successful on a global scale, is rumoured as one of the industry segments that could be targeted by part of the changes planned by the Government. According to some Racing Post reports, proper funding could be secured for the sport but it could also hide certain risks of the industry.
The necessary funding could be ensured by the implementation of a new tax – a proposal that has been welcomed by leaders of the horse racing segment. However, horse racing in the country could also be affected by some of the changes in the regulation of the gambling industry, such as controversial affordability checks. This, however, could cause a decline in the gross gambling yield, rather than help fund the segment.
UK Government Aims at Tackling Gambling-Related Harm by More Gambling Reforms in the Country
A report presented by Public Health England has confirmed that income and various other factors were not statistically significantly associated with the risks of gambling and gambling-related harm. Apart from that, the report also states that some demographic factors seem to be more significant in predicting reckless behaviour that is likely to put gamblers at risk rather than economic factors, including employment, income, and relative deprivation.
These revelations, however, would not be enough to stop the upcoming changes in the British gambling sector. Even though it has failed to meet the previously announced deadlined, the UK Government still seems determined to reduce the gambling addiction rate in the country as much as possible, even though it has remained quite low, at around 0.2%, as confirmed by the sector’s regulator, the UK Gambling Commission (UKGC).
Reportedly, the changes that the final version of the Government’s White Paper will include are still uncertain. Considering the massive contributions made by the industry to political campaigns, some analysts believe that the final reforms could reflect the majority of effects sought by the legal gambling industry.
As mentioned above, the exact changes that could be brought by the White Paper on gambling remain unknown. Based on rumours and media reports, the changes could be not as drastic as the anti-gambling campaigners have been insisting on but they could still cost a lot to the industry, which may be forced to say goodbye to more than £1.1 billion a year.
- Author
Daniel Williams
