New government proposals could impose a £2 maximum bet on online gambling machines for young gamblers.
The publication of the white paper on wagering on Thursday represents the most significant regulatory overhaul in the sector in nearly two decades.
The government stated that online gambling machines were a high-risk product associated with significant losses.
The white paper proposes a consultation on maximum wager limits of £2 to £15 per spin for online slot machines.
However, the government also proposed lower limits and increased protections for those between the ages of 18 and 24, who “may be a particularly vulnerable cohort.”
The consultation on limits for younger gamblers will include a £2 stake limit per spin, a £4 stake limit per spin, and an individual risk-based approach.
Flutter, which owns Paddy Power, Sky Bet, and Betfair, set £10 slot limitations in September 2021.
Culture Secretary Lucy Frazer stated that the government will do more to “protect children” by “ensuring that children have no access to online gambling or scratch cards.”
The new regulations also imply that gamblers who lose significant sums of money may be subject to checks.
When a speculator loses £1,000 in 24 hours or £2,000 in 90 days, these provisions will be activated. It is currently unknown how these will be executed.
No new actions are being taken regarding advertising, much to the dismay of activists. The government stated that existing safeguards adequately secure the most vulnerable.
“Hesitate and delay”
In addition, the government intends to strengthen pub licensing laws to prevent minors from playing slot machines with cash prizes in pubs and to prohibit lotteries from selling tickets to anyone under the age of 18.
“Although we recently raised the age limit for the National Lottery to 18, other lotteries and football pools products remain legally permissible beginning at age 16,” the white paper stated.
Lucy Powell, Labour’s shadow culture secretary, stated, “We’ve long advocated for the modernization of antiquated gambling laws, which were enacted before smartphones were commonplace so that they can address the challenges gambling faces today.
“While Labour has called for reform, ministers have been slow to act, with the government’s chaos resulting in numerous false starts. Since the initial promise of a white paper in December 2020, there have been ten ministers responsibility for gambling policy.
CARE’s head of advocacy and policy, Louise Davies, questioned the need for consultation.
“After years of disappointment regarding this white paper. It is infuriating to learn of the government’s indecision and delay,” she said.
“The excesses of the gambling industry and the magnitude of gambling-related harms in the United Kingdom are unmistakable. There is no need for additional consultation regarding measures that have broad support. Such as a mandatory levy and affordability checks. We require legislation”
The white paper represents the first new proposed regulation in the industry since the invention of the smartphone, which has revolutionized the betting industry.
When the Gambling Act of 2005 was enacted, the majority of wagering was still conducted in tangible locations, such as betting shops, casinos, and racetracks. Now, online wagering accounts for two-thirds of the industry’s revenue.
On Thursday, Frazer told Parliament that “there is now a Las Vegas on every smartphone.”
Since the review of wagering laws was first announced by then-culture Secretary Oliver Dowden in 2020. The announcement of the actual contents of the white paper has been delayed at least four times.
Since then, there have been regular reports of individual cases of problem gamblers, but the government’s solution has not been implemented despite the efforts of three culture secretaries and three prime ministers.
Frazer told legislators, “When gambling becomes an addiction, it can destroy lives.” Broken families, unemployment, foreclosure, incarceration, and suicide.
“These are the most extreme scenarios imaginable. However, we must recognize that for some families, the worst concerns for their loved ones have been realized.
She added, “Adult gambling problems have always been measured in terms of money lost. Its loss of dignity, identity, and, in some cases, life cannot be quantified.
“We need a new approach that distinguishes between casual gambling and unbridled addiction. Therefore, we are updating our pre-smartphone regulations with a white paper on wagering for the digital age.”
One of the proposals is a tax on wagering companies that would be used to fund addiction treatment and research. However, it remains unclear how this funding will be managed.
Entain, the owner of Ladbrokes, said it had already implemented several actions related to the new proposals, and Flutter, the owner of Paddy Power, called the white paper “a significant moment for the UK gambling industry.
Iain Duncan Smith, vice-chairman of the All-Party Parliamentary Group on Gambling-Related Harm and a member of the Conservative Party, praised the white paper but stated that it did not go far enough to protect minors from advertising.
Sir Iain stated regarding the white paper, “I embrace this because it is at least a beginning, and I believe it is a positive beginning. Regarding advertising and children, I would merely like to state, “Not nearly enough.”
However, another Conservative member of parliament, Philip Davies, criticized certain measures. “Before these affordability check proposals, the Conservative party believed in individual liberty and personal responsibility,” he stated.
“Do gamblers have any say over how they can afford to spend their own money?”
Additionally, the white paper proposes the implementation of affordability checks to safeguard an estimated 300,000 problem gamblers in the United Kingdom.
The tax is voluntary, and the NHS refuses to accept the payments for ethical concerns.
In recent years, the NHS has expanded its gambling-specific services. Eventually, the new tax will pay NHS treatment.
A spokesperson for the DCMS stated, “We are determined to protect those who are most at risk of gambling-related harm, including young and vulnerable people.”
To level the playing field, while regulation is increasing for online platforms, certain rules are being relaxed in physical casinos.
The government plans to allow debit cards in gambling machines and boost the number of machines in tiny casinos.
Two parents who lost a child to gambling-related suicide applauded some of the government’s proposals but said that more needs to be done, particularly regarding the elimination of gambling advertising and preventative affordability checks.
Liz and Charles Ritchie founded Gambling with Lives in 2017 after the demise of their 24-year-old son Jack.
Ms. Ritchie stated, “After a long fight, we’ve won concessions on some of the key issues. But much more must be done to reduce the horrific harm caused by one of the world’s least regulated gambling industries.”
“We have prevailed in our argument against a formidable gambling lobby, but this is only the beginning. Every day, another family is devastated by gambling-related suicide, and we will not cease until the fatalities cease.”
According to gambling industry sources, the proposals will cause them financial hardship. They will examine them thoroughly to determine their entire impact.
Others will monitor the share prices of companies over the next few hours to gauge market reaction. If there is little change or price increase, activists will conclude that the government could have done more.
Not his actual identity, Gareth resides in Wales. After opening an online wagering account on his eighteenth birthday and losing several thousand pounds within the first twenty-four hours, he has witnessed his son spiral into gambling addiction.
I wished to make it illegal for gambling companies to have any association with sports, particularly football. That was never going to occur due to the high cost,” Gareth stated.
“They should be prohibited from advertising wagering on television. Cocaine and opiates are prohibited from advertising.
“I enjoy going to the races, knowing that I’ll wager £5 on each of six races and lose £30. This is the preponderance of individuals. But for the minority, such as my son, it’s online slots, casinos, and online bingo. It’s a dependency. They require security.”
