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UK PM and Gambling Minister Resignation Traps Gambling Act Review in Limbo
By Jeff Osienya Jul 09, 2022 IndustryThe progress of the critical gambling review white paper grinds to a halt following the resignation of the DCMS Minister for Tech and Digital and Prime Minister Boris Johnson a little later. How exactly will this affect the UK gambling sector?The review of the 2005 Gambling Act of the UK will be delayed indefinitely following the recent resignation of the Gambling Minister, Chris Philp. Philp’s resignation is one of over 60 in the past few days, following a series of scandals that have hit Prime Minister Boris Johnson since 2021, leading to his resignation hours after Philp’s announcement. The former PM’s office has since issued a statement to reporters that the government would not be seeking to:
Quote“implement new policies or make major changes of direction; rather, it would focus on delivering the agenda on which the government was elected.”
Additionally, the statement indicated that any significant financial decisions would be left to the next PM. This means that a gambling review white paper which was set to be published during the summer recess has been put on hold until the next Prime Minister takes over.
White Paper Draft Already At No. 10
Chris Philip, the Minister for Tech and the Digital Economy posted his resignation letter to his Twitter feed, which also revealed the whereabouts of the Gambling Review white paper. According to his communication, the white paper has already been submitted to the Prime Minister’s Office at No. 10 Downing Street and was due for approval. The resigning Gambling Minister stated in the letter addressed to the PM said in part:
Quote“The Gambling Review is with No. 10 at the moment for final approval, containing strong measures to protect people from the ravages of gambling addiction. I have met with the families of those who have committed suicide as a result of gambling addiction, and I strongly urge you to deliver the review in full and undiluted.”
Entain Chief Executive Jette Nygaard-Andersen has already reported the high likelihood that the paper will not be considered until the end of the parliament’s summer recess, which ends on 5 September. Nygaard-Andersen noted in a statement:
Quote“It’s probably unlikely that it comes out before the summer recess. Yes, it can still be amended, and will be consulted on once it’s published, but we are quite confident that the process is working. Number 10 and the treasury are still taking in comments.”
Before Philp’s resignation, Northridge Law partner Melanie Ellis had predicted that the happenings at No. 10 would inevitably affect the timings of the white paper’s publication. Although, in her opinion, this wouldn’t have much effect on its contents.
Regarding the future of the Online Safety Bill, which was mentioned in his letter of resignation, Chris Philp told reporters that he was open to serving in a different capacity if called upon. He added that he was willing to help get the bill through parliament as a “public duty” in any capacity. Given that the Gambling Minister had spent ‘months and months’ and ‘hours and hours’ of his life getting the bill as good as it could be, he indicated that he was ready to see it through. The letter had stated that the Online Safety Bill, which he had taken through 50 hours of the Bill Committee, was ready for the Report Stage, scheduled for this week.
Delay to Greatly Impact the UK Betting Market
Following Johnson’s and Philp’s moves on Thursday, the UK betting industry has been thrown into disarray. Had things gone as planned, the ‘coming weeks’ (when the white paper was expected to be published) would have seen exploitative ads by betting operators vetoed by the UK’s Committee on Advertising Practice (CAP).
The government has been collaborating with stakeholders on possible amendments to the Gambling Act, although the English Premier League has pushed it to reconsider some elements within the review. However, with the delay now unspecified, concerned parties have raised concerns about some immediate potential consequences. For instance, the rising inflation was already hitting businesses awaiting the finalization of the Gambling Act review.
British Amusement Catering Trade Association (Bacta) CEO John White has also come out to express concerns about the delays. White said that over 20,000 seaside arcade and adult gaming center workers would be left in limbo as a result, adding that:
Quote“Any potential further delay would come at an increasingly difficult time for the industry, with rising energy prices and inflation damaging these often small and family-run businesses. A recent survey of Bacta members revealed that recruiting and rising prices were very top concerns,”
The Bacta CEO also added that his Trade Association was ready to discuss with the new government and the new Gambling Minister. He further expressed optimism that the proposed reforms would steer the industry in the right direction, enabling the industry to address the business costs. For example, the current law does not allow establishments to increase prices to protect themselves against inflation.
More Pressure Mounts on Gambling Officials
The white paper has been under review for quite some time, and the recent events are a wrench in the works for parties that championed the imminent amendment of the current gambling law. The UK government has been under much pressure to expedite the processes of finalizing and ratifying the gambling reforms. With the recent turn of events and the effect they’ll have on the white paper’s publication, the pressure has obviously increased several times over.
Earlier in the year, the DCMS parliamentary undersecretary Nigel Huddleston reported that the white paper was almost ready, and a launch had been set for spring. However, in June, the process was postponed yet again, with legislators citing “watered-down measures” as a reason for further delaying the process. For opposers of the reforms, the back and forth of the past months and the power void in the government would work in their favor.
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