Summary:
A new study shows that affordability checks are already hitting revenues in the UK’s regulated betting and gaming sector, which has urged the government to publish a White Paper that delivers. The sector remained robust despite the Pandemic and is now weathering the energy crisis and cost of living crisis, according to research by the Betting and Gaming Council.
The major report was about affordability checks and the gambling and gaming industry
The major report was about affordability checks and the gambling and gaming industry.
A new study shows that affordability checks are already hitting revenues in the regulated betting and gaming sector of Britain.
The sector remained robust despite the Pandemic and is now weathering the energy crisis and cost of living crisis, according to research by the Betting and Gaming Council.
The study said that the enforcement of tougher affordability checks have contributed to reduced revenues.
More than 70 per cent of people who place a bet said they would be unwilling to allow regulated firms to carry out compulsory affordability checks to prove they can afford to wager, according to the report.
BGC members’ total Gross Value Added contribution to the UK economy was over seven billion dollars despite external pressures and affordability checks.
More than 100,000 jobs are supported by the industry in high streets, hotels, and global tech powerhouses.
The contribution to the Treasury from regulated betting and gaming was still significant.
Despite massive global volatility, the Gross Gambling Yield, total revenues after winnings have been paid but before costs are deducted, was slightly up in 2019.
New laws for the Gambling Industry are expected within weeks. BGC members have started applying more stringent checks, which are hitting revenues, in expectation of Government limits on spending.
The decline in real household incomes, the introduction of affordability checks on online, and the re- opening of physical venues are some of the factors that have contributed to the decline in online GGY.
The decline in the online regulated betting and gaming sector as a result of factors including the impact of affordability checks could push customers to the black market, according to a study.
The study said that these pressures could lead to the black market for gambling products that do not hold a UK Gambling Commission license.
Black market betting has increased as a result of European countries applying tough sanctions on betting, including restrictions on stakes, blanket affordability checks, and curbs on advertising.
In France, the black market accounts for 57 per cent of all money staked, while in Italy it is 23 per cent, and in Norway it is 66 per cent.
The BGC renewed calls for the Government to end the uncertainty caused by the delayed review of gambling laws, and ensure that any new regulations put industry on a sustainable foundation for future growth.
Michael Dugher is the CEO of the betting and gaming council. There is a genuine global leader in the UK’s regulated betting and gaming sector. Some 22.5m adults enjoy a wager on the lottery, on bingo, on any number of sports, online and in casinos.
Our members pump billions into the economy, support the Treasury with more billions and support over one hundred thousand jobs.
This contribution is not always guaranteed. If this industry is to maintain its status as a global leader, it needs to thrive.
As ministers consider the regulatory framework for this industry, they should stop and think, and make sure the decisions they make support a sustainable future.
This is a sector that is ready to invest, on hard-pressed high streets through bookmakers, in tourism and hospitality through world-class casinos, and online, where our tech giant members are looking to increase the number of apprentices they hire.
We urge the Government to find an evidence-led, balanced White Paper that protects the vulnerable, allows the vast majority who bet safely to continue to do so, and allows business to thrive.
A review of current Gambling legislation will be outlined in a White Paper within weeks.
Since it was established three years ago, the BGC has launched 20 standards and initiatives to drive up standards.
The industry is serious about safer gambling, and it is encouraging that the rates of problem gambling among UK adults remains low by international standards.
Technology should be used to ensure checks on spending are carefully targeted towards the vulnerable, not the majority who don’t show any signs of harm.
Without clarity on affordability checks, our members are concerned that they are driving frustrated customers to the unsafe, unregulated black market.
These sites don’t do anything to protect young people, they don’t invest in the sports we love like horse racing, rugby, darts and football, and they don’t contribute a penny in tax.