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Back in December of 2020, the UK government announced that it would undertake an intensive review of the gambling industry. The announcement came amid concerns that children in the UK were being exposed to unhealthy levels of advertising that was normalising gambling. At the time the government also cited the growing number of problem gamblers in the country as a major cause for concern.
Over a year later, we’re still waiting on the results of that review. But with sources within the government suggesting that a white paper on the topic could be published as early as May 2022, we decided to take a closer look at what we already know and what could happen following the review.
Who is carrying out the review?
The review is being carried out by the Department for Digital, Culture, Media, and Sport (DCMS). The DCMS has carried out research of the industry for the past year gathering feedback from both gambling operators, problem gambling organisations, and the general public.
What is the timeline for the review?
An initial publication date for a white paper was set for December of 2021. However, this was pushed back following a cabinet reshuffle that saw the previous gambling minister John Whittingdale replaced by Chris Philp. As a result, the publication date was postponed until May 2022.
What is under review?
The Gambling Act 2005 and the UK Gambling Commission are under review. This means that all laws, rules, regulations, and restrictions relating to the gambling industry are under review.
What’s likely to change?
More advertising restrictions
For one thing we may see some stricter rules on advertising in the industry. This is, of course, in response to the concerns raised by problem gambling organisations such as GamStop and GamCare. Advertising for gambling companies have become much more prevalent in recent years and despite strict rules governing when and where these types of ad campaigns can be aired or placed, there are still concerns about the exposure of these ads to both problem gamblers and children.
While it’s unlikely that a blanket ban will be put in place, it’s believed that the review will suggest that gambling companies take a more morally responsible approach to advertising their products and services.
A ban on free bet promotions
While there has been no indication that an outright ban will happen, it is possible that there could be more restrictions placed on free bet promotions. Currently, gambling companies in the UK use this type of promotion to varying degrees of success in their bid to attract new players. In fact, a look at a list of online casinos offering no deposit bonuses shows that there are dozens of companies running this kind of promotion including industry heavyweights such as William Hill.
In Ireland’s gambling review which is currently underway, the government is proposing a complete ban on free bets that encourage gambling through free bonus offers such as these. Meanwhile in Ontario, Canada, the local gaming regulator the AGCO has opted to allow the bonuses but prohibited advertising them anywhere but on a dedicated page on a gambling company’s website.
It’s unlikely that the UK government will take such drastic action as that which is proposed in Ireland, but it may adopt some form of restrictive measures on the advertising of these free betting promotions.
Restrictions on gambling’s involvement in sports
Right now, betting companies have an extremely visible presence in the sports through sponsorship deals with football clubs and individual athletes. The review is likely to recommend that this type of involvement in sports comes to an end. In fact, recent reports suggest that this has already been agreed to with football kit sponsorships by betting companies more or less confirmed.
This move to restrict the gambling industry’s involvement in sports is no doubt a move designed to help reduce children and problem gamblers’ exposure to betting advertising.
Will it have a negative impact on the gambling industry?
It’s hard to imagine that anything could have too negative an impact on an industry that has seen record growth year-on-year particularly in the online space.
However, while gambling companies will continue to make money no matter what happens following the review, it’s the knock on effect that could impact other industries. This is particularly true of football where many of the country’s leading clubs in both the Premier League and the Championship earn quite a lot through sponsorship deals with betting companies.
Whatever happens, one thing we can be sure of is that the gambling industry will survive.
