The past six years have seen plenty of consultation take place over possible gambling reform in the UK. At present, there are two evidence-gathering periods taking place that could have serious implications for the UK’s gambling industry.
It was in the lead up to the 2019 General Election that the Conservative Government pledged to reform the gambling industry. The last Gambling Act had come into force in 2005 and the growth of online betting has changed everything since then.
After being re-elected, there was talk aplenty over the next few years. The UK Gambling Commission (UKGC) gathered evidence but the subject was well down the to-do list in Downing Street. The pandemic took place and while that rightly took precedence, it also saw an increase in online gambling as players were unable to access land-based venues during lockdowns.
Then came all the chaos in Downing Street to delay matters further. The gambling now was betting on who the next Prime Minister would be and who’d win the next General Election. 2023 finally saw a White Paper on gambling reform published. It suggested several measures, mostly aimed at the online side of the industry. Rather than immediate action following, there was yet more consultation.
Labour agreed with most of what had been included in the White Paper. When taking power last year, more talking rather than action took place. 2025 has finally seen stricter regulation begin to take place.
Those who campaign against gambling have long been critical of online slot games. Just as had been the case with the fixed-odds machines in High Street betting shops, huge losses were taking place in a short period of time. They had their maximum stakes slashed and it led to some shop closures and redundancies.
Slotsplay a key role in the success of these 20 online casinos. New maximum stakes have been introduced with 18-24 year-olds now only able to stake a maximum £2 per spin and £5 for older players. This year has also seen a mandatory levy placed on licensed UK gambling companies. Funds raised will be put towards researching gambling harm and treating those having difficulties with how they gamble.
For several years, the All-Party Parliamentary Group (APPG) on Gambling Reform has been calling for changes to how the industry is regulated. It now has a new chair, former Conservative leader Sir Iain Duncan-Smith MP.
His clear view is that “more needs to be done” to ensure that a regulatory framework is in place that “is fit for the digital age” and protects players from suffering gambling harm. Duncan-Smith feels that the inquiry will “play a crucial role in shaping our recommendations to the government.”
Eager to see further regulation introduced, the APPG have launched an inquiry. This is currently gathering yet more evidence with a deadline of September 12. They want to examine how suitable current policies and regulations are. Other areas include how effective the UKGC is and what progress has been made on the measures listed in the 2023 White Paper.
A growing problem for gambling companies around the world is the amount of tax they are being asked to pay. Rates have been on the increase in the USA and there is the possibility the same could take place in the UK.
Companies have already had to cope with Labour’s National Insurance Tax rise. Now proposals have been released that will see a new tax system introduced for the UK gambling industry. Currently, there is a three-tier system but the plans are for just one tax to be charged and the gambling industry fears this will see a rise to at least 21% of profits.
Consultation is taking place at present with those in the industry able to put across their views on any changes. Already there has been opposition to any increase and there are concerns that an increase will cause major problems for both the gambling and horse racing industries.
The Betting and Gaming Council has “completely rejected” the proposals and are concerned about how an increase would hit its members and possibly see jobs lost. It could also lead to gamblers leaving the licensed gambling market. Instead, they would play on the unlicensed black market which is unregulated and offers considerably lower levels of customer protection.
Former Labour Chancellor of the Exchequer and Prime Minister Gordon Brown has called for a tax increase. Revenue earned could be used to battle the problem of child poverty in the UK. He believes that “fairer gambling taxes” could see £3.2 billion raised.
It’s always awkward for former Chancellors to make suggestions on future policies. The former Chancellor does not want to be seen to be acting like a “backseat driver” but believes setting a higher tax rate for the gambling industry is a “straightforward budget choice.”
With further regulation also on the horizon, the coming months are going to cause concern for the UK gambling industry.
Read more:
How Will Current Consultations Affect the UK Gambling Industry?
