Gambling white paper: Betting firms forced to ‘step up’ checks in biggest industry overhaul since 2005

Gambling companies will be subject to tighter regulations including a statutory levy and stricter checks on losses, the government announced today in its long-awaited gambling white paper. 

The secretary of state for culture, media and sport Lucy Frazer announced on Thursday that the industry would be subject to “six key areas” of reform. 

Operators will be subject to a statutory levy to fund research and education on gambling-related harm, but it is not yet clear how much the levy will be or how it will be managed. Stake limits for online slots, between £2 and £15, were also introduced, subject to consultation. 

The secretary of state also confirmed the white paper would ensure “beefed up” rules to regulate VIP schemes which target users with free bets, while more resources would be given to the UK regulator, the Gambling Commission.

The government’s review — first announced in 2020 — is the largest overhaul to the industry since Labour’s 2005 Gambling Act which first set out how gambling is regulated.

But the sector has been shaken up by the proliferation of online casinos on smartphones.  Frazer said the industry is now “positively unrecognisable” from when legislation was first announced in 2005. 

“We need a new approach that recognises a flutter is one thing, unchecked addiction is another,” she said. 

Companies will also be forced to “step up their checks” on losses, while an ombudsman will be appointed to address the “power imbalance” between gambling operators and punters, Frazer said. 

Gambling companies have also poured money into lobbying the government for favourable reforms. 

Earlier this month, Tory MP Scott Benton was suspended from the party after he was caught on camera offering to provide Times’ reporters posing as gambling investors with a copy of the white paper in advance and ask questions on their behalf. 

Peter Jackson, Flutter Entertainment chief executive, said the legislation was a “significant moment” for the sector.

“We believe proactive change will lead to a better future for our industry,” he said.

“We will continue to constructively engage with the government and the Gambling Commission as part of any subsequent industry consultation processes, with a focus on providing support to the minority at risk of gambling harm without interfering disproportionately with the enjoyment of the vast majority.”

Neil Banbury, UK general manager at Kindred Group, which owns brand including 32Red and Unibet, said: “Kindred looks forward to contributing to the white paper’s next steps and building upon the industry’s efforts over the last few years to strike the right balance between providing an enjoyable experience without compromising player safety.”

Shadow culture secretary Lucy Powell accused the government of “dragging their feet” and said Labour had “long called for outdated gambling laws” to be updated for the 21st century.

“The chaos we’ve seen in government has meant many false starts,” she said. 

“Analogue gambling regulation must be updated for the digital age. There’s no reason we can’t get this done by the summer recess and after years of delay, that’s what we should do.”

Matt Zarb-Cousin, director of campaign group Clean Up Gambling said affordability checks and commitments to limiting online stakes were “welcome,” but added: “The requirement of further consultation will allow the sector more time to profit from the harm it’s currently causing.”