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Hypocrisy at Play? Private Meeting Agenda Between UK Officials and Operators Revealed
By Shane Addinall May 18, 2022 IndustryJournalists uncovered a private meeting held relating to the highly anticipated UK Gambling reform. Campaigners accuse the operators of hypocrisy, but research findings back the concerns they raised.Reports reveal that three of the largest gambling brands in the UK lobbied Treasury officials, opposing proposed crackdowns.
Considering the imminent Gambling Act reform, Bet365, Entain, and Flutter executives had a private meeting with officials and warned them of the possible financial implications and unreasonable regulatory changes.
Lobbying is a known practice in Britain, and public disclosure is required when government ministers are involved. However, the operators approached tax officials, and therefore it was unnecessary to make the meeting a public matter. The gambling executives approached the country’s coffer managers as they believe the UK faces a genuine risk of losing billions in tax revenue.
Britain’s government announced the review of the 2005 Gambling Act at the end of 2020, but after countless delays, it is yet to be released.
Tighter Regulations Equal Lighter Coffers
Released under Britain’s Freedom of Information laws, documents exposing details of the private online meeting have been revealed. Executives from the largest brands in the UK sat down with specialists from the Treasury and Revenue and Customs department.
Held on 7 October 2021, the agenda of the meeting included discussions of feared consequences if the government moves forward with certain excessive regulatory changes.
The gambling executives present at the meeting were from Entain, Flutter, and Bet365. Based on a study ordered by industry stakeholders, PricewaterhouseCoopers found an increase in gambling on unlicensed platforms. Operators link the change in consumer behaviour with government talks of rigid gambling regulations.
The companies oppose the government’s proposals to limit stakes and impose bans on gambling ads, obligatory affordability checks, and bans on VIP schemes. They approached the meeting from the point of view that, according to the study and their opinion, these overly zealous changes could cost the country £3.2 billion in tax losses.
The industry argues that unbalanced legislation may cause more harm as gamblers seek offers from black market operators.
A Loss for One is a Loss for All
Reporters cite comments on the lobbying from one of the campaign groups rallying for tighter regulations, Clean Up Gambling. Matt Zarb-Cousin, director of the group, believes the lobbying campaign is a guise as operators try to derail important shifts in the regulated industry. Zarb-Cousin said:
“This is massive propaganda from an industry that has engaged in tax avoidance for years. I hope the Treasury isn’t buying it.”
Meanwhile, the operators in question proposed an open dialogue with tax officials to discuss developments on the matter. Entain’s spokesperson pointed out that the company is among the top 20 corporate taxpayers in the country, and UK-based Bet365 is one of the country’s biggest taxpayers. Flutter disclosed that it paid more than £600 million in taxes to the UK government in 2021.
In a two-page document to the tax officials, the companies explain the importance of a holistic approach to regulatory changes. It also mentioned the concerning tax losses and player harm that could result from poor legislation.
The Fight Against Gambling Harm
The National Health Service (NHS) released a survey in 2018 which indicated 245,000 Brits struggle with gambling-related problems. In 2021, a study from Public Health England found that approximately 409 suicides occur every year because of gambling addiction.
Along with the government’s long-winded endeavour to update its 17-year-old Gambling Act, pressure from campaigners and support services to overhaul the industry led to hotly debated proposals which may or may not show up on the whitepaper.
As the Department of Digital, Culture, Media, and Sport (DCMS) plan to release the gambling reform whitepaper in the coming weeks, all concerned parties hold their breath in the hope of logical and responsible changes. We can only put speculations to rest once the DCMS show their cards.
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