What the election results mean for UK gambling policy

Labour’s victory on the 4 July general election has brought an end to 14 years of Conservative power and with it, the possibility of wholesale policy changes impacting every facet of government authority. One sector that will be paying particular attention to Labour’s movements as they come into office will be that of gambling, which, following the long overdue Gambling White Paper published last year, was preparing for the biggest reform to its legislation since 2005. Considering the weight of this landmark document, let us take a closer look at the possible effects a change in government might have and assess what this really means for UK gambling policy.

Background on UK gambling policy

Currently, gambling activities in the UK are still regulated and controlled by the policies set out in the Gambling Act 2005. Introduced by the last Labour Party government to hold power, Tony Blair and New Labour set out to revolutionise the industry, effectively turning the tables on how the state approached gambling activities.

In many ways, the changes implemented provided positive outcomes for the industry allowing companies to advertise freely like never before and ultimately changing public perception of gambling practices.

As gambling became mainstream and more socially acceptable across the nation, Britons now didn’t have to search to find the best online casino in the UK, but they were made aware of them through advertising.

The rapid growth and expansion of online gambling and betting platforms over the course of the last twenty years has had a monumental impact on the industry, completely transforming the way in which we gamble.

With online platforms now massively outperforming their land-based counterparts in terms of revenue it has become apparent that much of the legislation outlined in the 2005 Act is now critically out of date.

In 2020, the Conservative government launched a review of the current regulations to ensure that gambling legislation would be fit for the digital age. After almost three years, they finally published the Gambling White Paper in 2023 listing several major proposals that would amount to major reform for the industry. However, with the Tories now no longer in power, question marks have been raised as to how much of this dossier will still make it into law.

Labour’s stance on UK gambling policy

While it is true that the policies laid out by New Labour in 2005 presented some of the most moderate gambling legislation in Europe, Labour has historically advocated for stricter regulations, particularly on tightening controls on advertisements as well as campaigning for greater protection for problem gamblers.

In the Labour Party manifesto, which was released shortly before the election victory, the party outlined several commitments to gambling reform. They stated that they would ‘reform gambling regulation’ and ‘reduce gambling-related harm’ – doing so by increasing protections and working with industry leaders.

While vague, it does appear that Labour is committed to improving gambling policy. So, what changes could we see?

Update online gambling legislation

The most important change required in any updated legislation is to regulate the huge online gambling sector that has emerged.

We could see a system of enforced financial risk checks implemented which would ensure operators are tracking their customers’ financial position and behaviour. The white paper also outlines that suitable stake limits should be introduced on online slot machines in keeping with the £5 limitation that is currently in place in land-based establishments.

As online environments continue to evolve, a malleable and adaptable approach to regulation will be required.

A statutory gambling levy

One of the major proposals outlined in the previous government review was a statutory £100 million gambling levy on gambling operators to fund research into problem gambling and to help support NHS treatment of vulnerable individuals.

While the current scheme in place is voluntary, placing the decision to provide funds at the doors of gambling companies, the proposed new levy would see online operators forced to pay 1% of their profits with land-based venues paying 0.4%.

This is seen by many as an essential and long overdue amendment to the law with the proposal ensuring that operators hold a level of responsibility for what can be a potentially problematic environment.

While Labour has made no statement to say they will follow through with this proposal, there remains staunch support for this move, and it appears likely that it will not be long till we see the levy become a reality.

Tighten gambling advertising laws

Several changes to the regulation of gambling advertising have also been suggested by the outcome of the 2023 white paper, with much of the new proposals surrounding direct marketing and promotional offers.

While multiple control measures are already in place, most notably the ‘whistle to whistle’ ban on advertising during sports broadcasts, some believe that the transformation of the industry in recent years has opened new avenues that need tighter controls.

The issue centres on ensuring children’s exposure to gambling activities is minimised taking into consideration the increased gamification of certain platforms. Labour will be keen to take these recommendations on board, working with operators to ensure that the industry continues to function in a socially responsible manner.

The future for UK gambling policy

At this moment, the effects of the election outcome on UK gambling policy are hard to truly define.

Some of the proposals outlined in the white paper will require parliamentary discussion between both sides of the benches before any legislative changes are made, highlighting that certain reforms will require support not just from Labour but from the opposition too.

In other cases, it may be the Gambling Commission or the Department for Media, Culture, and Sport in charge of putting plans into action.

What is certain is that the gambling policy is changing, slowly but surely catching up with this continually evolving industry. Operators and consumers alike will be paying close attention.

Featured image supplied