Waiting for change
When Kier Starmer’s Labour Party swept to power on July 4th on a promise of change, they did not specify every single thing that they intended to change. However, the King’s speech saw 40 bills announced as Labour sought to maintain momentum and see its first one hundred days in office as a period of positive progress. These included setting up Great British Energy, recruiting over 6,000 teachers and providing free breakfast clubs to primary school students. However, gambling did not feature in the program at all, leaving those in the industry holding their collective breath, waiting for Rachel Reeve’s delayed budget.
After years of lobbying from pro and anti-gambling factions, the last Government had brought forward a gambling white paper in May which promised, amongst other things, to relax existing rules that applied to casinos, remove the prohibition on direct debit card payments on physical machines and introduce age limits on certain low-stakes games.
However, it is now unclear which, if any, of the measures will become law. As New Labour was the original architect of the Gambling Act 2005, widely heralded as one of the most progressive pieces of gambling regulation legislation, there is much speculation and chatter about what will happen next.
Reducing harm
Gambling was mentioned in the Labour Party manifesto, where they claimed,
“Labour is committed to reducing gambling-related harm. Recognising the evolution of the gambling landscape since 2005, Labour will reform gambling regulation, strengthening protections. We will continue to work with the industry on how to ensure responsible gambling.”
The manifesto did not contain any specific plans to do this, and it is possible that significant change is a relatively low priority, with the Government allowing the white paper to continue its progress through the system.
Gambling industry backs Labour
There is no doubt that there are strong links between the Labour Party and the Gambling Industry. Historically, Bet365 and its co-founder, Peter Coates, were significant donors to the party, as was Derek Webb, founder of the Campaign for Fairer Gambling. Starmer’s office received donations from Bet365 and other gambling-related providers in 2020. However, in true gambler style, the industry hedged its bets as BetFred’s founders made significant contributions to the Conservative Party.
The current Chair of the Betting and Gaming Council (BGC) is the former Labour MP for Barnsley East. As under-secretary of state in the Department for Culture, Media and Sport, Stephanie Peacock is now the new gambling minister. She is the MP for Barnsley South. The two are known to be on friendly terms and worked together while Labour were in opposition.
Dugher is reported to have congratulated the Labour Party’s win, claiming that the BGC had ‘long-treated Labour as a Government in waiting’ and had worked closely with shadow ministers on behalf of its members and their millions of customers. He claimed their work is to continue to drive up standards and champion Britain’s ‘world-leading’ gambling industry. He said that they looked forward to partnering with Labour. It is safe to say that it does not look as though there is going to be a significant crackdown on the industry.
Gambling industry’s contribution to the UK economy
The gambling industry contributes significantly to the UK economy, so the Government will be keen to ensure that any changes implemented do not despatch the golden goose. Between April 2022 and March 2023, the industry brought in £15.1 billion in total gross gambling yield, almost three times the sum it produced in 2013. Much of the growth over the decade can be accounted for by the phenomenal growth in online and mobile gambling. This is a result of improved internet and data connection speeds and hardware and software advancements.
The growth of the mobile sector
Mobile devices seem to be tailor-made for the online gambling market, and many online casinos have been designed with a ‘mobile-first’ approach. The guys behind hugely successful LeoVegas claim they were inspired to create online slots while watching the spinning screen of an early iPhone. Online casino gambling and slots have surged, and there is now so much interest in this sector that there are dedicated review and recommendation sites like Casino.org designed to help players navigate the huge online betting scene and compare everything the new online casinos have to offer.
Significant industry
The Betting and Gaming Council claimed that the UK’s regulated betting and gaming industry supports 110,000 jobs, generates 4.2 billion in taxes and contributes over £ 7 billion to the economy. While the gambling companies net vast profits from the sector, the regulated betting and gaming industry also provides vital funding to popular sports.
The English Football League is a beneficiary in receipt of £40 million a year, horseracing £350 million and snooker, rugby league and darts receive over £12.5 million in funding. Anyone watching the British Paralympic team sweeping up medals in Paris cannot fail to notice every athlete interviewed thanking the National Lottery for funding and support. So much of our sporting, gaming and gambling culture is interlinked. Gambling stories are often about problem gambling, and there is no doubt that this is a significant problem in the UK; a recent survey for NHS England estimated that 0.4% of the UK’s adult population had a problem with gambling.
Hopes for changes to advertising
There is of course a downside. With the industry growing so rapidly, and the amount of advertising there for all to see, there is no doubt that problem gambling is also on the rise. Whilst the majority of gamblers enjoy the offer of this rapidly evolving industry without any issues – in some cases, gambling addiction can ruin lives. The families of those affected by problem gambling might be hoping that the new Government would take stronger steps to safeguard against gambling harms. Liz Richie from the Gambling with Lives charity said,
“We are very hopeful that a Labour government would listen to families bereaved by gambling suicide and learn from the catastrophic failures of regulation, public information and treatment that has characterised the industry-controlled system to date.”
However, so far, Labour has not made any concrete announcements or comments on future gambling policies or plans related to the industry. One area where campaigners hope changes will be made is with regard to the volume of gambling advertising. Many believe that advertising restrictions should have been part of the white paper and were disappointed when they were omitted. They will likely hope to influence the Government on this, so watch this space for more news.