UK MPs ‘ill-informed’ letter unlikely to have impact, say experts

Analysts believe the recent letter from UK MPs calling for a comprehensive review of the Gambling Act is “ill-informed” and unlikely to sway government policy.

Industry stakeholders argue that many of the measures proposed in the MPs’ correspondence are already being implemented. Insights provided during an April parliamentary health committee hearing by gambling harms researchers have been accepted as credible.

Dan Waugh, partner at Regulus Partners, commented to iGB, “This correspondence is just the latest in a series of reports portraying gambling negatively, suggesting that harms are escalating despite substantial counter-evidence. The industry is often depicted as predatory.” He acknowledged, however, that “considering the cumulative effect of activism over the years, further advertising restrictions cannot be dismissed in the near future.”

Waugh criticized the MPs’ letter as “remarkably ill-informed,” noting that the committee consulted primarily with anti-gambling activists and seemed to take their claims at face value. Nevertheless, he admitted that some recommendations appeared reasonable.

Challenges in Shaping Government Policy

The committee urged the health department to enhance regulations surrounding gambling advertisements, highlighting concerns that ads have become too intrusive and targeted. Reports suggested individuals receive promotions for free bets during late-night hours, contradicting evidence of gambling-related harms from researchers and advocacy groups.

Tamsin Blow, partner at CMS, expressed skepticism regarding the influence of select committee recommendations on government decisions. “Committees like the Health & Social Care Committee possess a broad but vaguely defined remit. While they can contribute to legislative efforts and potentially influence governmental priorities, they are unlikely to dictate policy.”

The Health and Social Care Committee’s letter, released last Thursday, urges the Department of Health and Social Care for a more robust approach to combat gambling harms and calls for a second review of the Gambling Act.

Data from the Office for Health Improvement and Disparities (OHID) 2023 suggested that problematic gambling may be linked to 117 to 496 suicides annually. Critics argue these statistics may have been exaggerated, leading to misleading conclusions.

Melanie Ellis, partner at Northridge law firm, conveyed her frustration that the MPs referenced the debunked estimate of 117 to 496 gambling-related suicides in England. She pointed out that the recommendations for limiting gambling ads, which are already established, further complicate the issue.

Growing Calls for UK Gambling Restrictions

MP Layla Moran, chair of the Health and Social Care Committee, emphasized the necessity of a second review of the Gambling Act, advocating for stronger regulatory powers to address problem gambling.

Blow emphasized the current government’s apparent reluctance to initiate a new review of the Gambling Act or to enact new primary legislation within the gambling sector. After a thorough review of UK gambling laws, the government released a white paper in April 2023, outlining new rules and restrictions aimed at player activity and operator marketing strategies.

Implementation of these reforms is underway, including mandatory deposit limits for first-time users and stake caps for online slots. A statutory levy has been established to ensure stakeholders contribute to gambling harm prevention research.

Restrictions on licensed operators offering multi-product promotions have also been introduced, along with a cap on bonus re-stakes at 10.

Further Advertising Regulation in Focus

The committee also expressed concerns about OHID’s ability to effectively tackle gambling-related harms without a thorough evaluation of advertising regulations and the industry’s commercial practices.

Recommendations included collaboration between OHID and the Advertising Standards Authority to reassess existing regulations concerning gambling promotions and advertisements.

– Limit gambling advertising prior to the 9 PM watershed
– Ensure content is not appealing to children
– Strengthen rules on sports team sponsorships
– Regulate social media advertising

However, Keystone Law partner Richard Williams pointed out that many of the advertising measures requested by the committee are already governed by the CAP/BCAP Codes, which require all gambling advertisements to avoid strong appeal to minors and regulate social media ad placements.

The Role of Regulatory Bodies

The Gambling Commission reiterated its commitment to overseeing gambling marketing to ensure all promotions are conducted responsibly.

“Marketing practices must prioritize the protection of children, young persons, and vulnerable individuals,” a spokesperson stated. “We collaborate closely with the Advertising Standards Authority and are prepared to take action, including imposing fines on rule-breaking firms.”

Currently, gambling operators are mandated to prominently promote safer gambling tools and provide support for individuals struggling with gambling-related issues.

A spokesperson for the Betting and Gaming Council (BGC) reported that its members’ advertising adheres to stringent guidelines and includes safer gambling messaging. They also highlighted that previous research had not definitively linked advertising exposure to the emergence of problem gambling.

BGC members allocate 20% of their advertising to safer gambling messages across TV, radio, and digital platforms. Voluntarily instituted, the ‘whistle to whistle’ ban restricts gambling ads from airing five minutes prior to and five minutes after live sporting events, prior to the watershed.

Insights from the Health and Social Care Committee Panel Meeting

The committee’s letter followed a well-attended evidence session on April 2, featuring panels with the Gambling Commission and gambling harm researchers.

During the session, researchers emphasized the need for stricter protections for land-based slots and casino games, challenging the narrative that gambling is a mainstream activity. Heather Wardle, professor of gambling research at the University of Glasgow, asserted, “Despite heavy advertising normalizing the practice, only 16% of the population engaged in sports betting last year, illustrating that gambling is in fact a minority behavior.”

The committee has called on the health department to evaluate the frequency of promotions and incentives offered by operators and expressed concern regarding the sector’s influence on research funded by the statutory levy.

Moreover, they have requested that the Levy Advisory Group publish an annual report assessing the levy’s effectiveness. Williams noted that the levy is already exerting pressure on operators, who have yet to effectively implement the funds necessary to combat gambling harm.

“With the introduction of the levy demanding an additional £40 million to £50 million by 2027 for preventing and treating gambling-related problems, increasing restrictions will be met with trepidation, especially since the funds from the £100 million levy have not yet been fully employed to tackle gambling issues,” Williams opined.

Elevating Public Awareness Around Gambling Harms

The MPs’ letter raised alarm over the general public’s lack of awareness regarding gambling harms. Testimonies from Liz and Charles Ritchie, advocates from Gambling with Lives and parents who lost their son to gambling-related issues, underscored the need for improved public education. They highlighted that while the dangers of smoking are widely recognized, gambling harms are less understood.

The committee has urged OHID to embark on a comprehensive public information campaign addressing the risks associated with gambling, which would explicitly include gambling-related suicides. This campaign should also target individuals engaged in gaming, given the sector’s propensity for gambling-related content.

Waugh from Regulus Partners remarked, “OHID perceives gambling as the ‘new tobacco.’” He noted that while OHID is inclined to adopt a stringent stance on gambling, it remains uncertain whether its mandate extends to advocating for new advertising regulations. Consequently, it is more likely that OHID will concentrate on impactful public awareness campaigns.