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Watered Down UK Gambling Reform Ruffles Feathers
By Shane Addinall Jun 05, 2022 IndustryUK lawmakers reconsider crucial changes set out in gambling reform propositions and stir up an immense backlash from opposition. MPs and anti-gambling campaigners are up in arms following a report on watered-down gambling reforms.More than two years after launching its review on outdated gambling laws, the UK government reconsiders important changes expected by anti-gambling stakeholders. Draft proposals implied the new gambling white paper would include mandatory levies to fund gambling-harm support and prohibit Premier League sponsorships. According to media reports, the Department for Culture, Media, and Sport now feel these are over the top.
The news of the watered-down regulations triggered a firm response from opposition parties and leaders from anti-gambling groups. News of the changes followed reports of gambling executives lobbying tax officials and studies that revealed a rise in black market gambling if Draconian laws came into effect.
Many expected that the government would release the gambling reform white paper in May, but they delayed this a few more weeks as lawmakers reconsidered certain aspects of the review.
On Second Thought
Since the 2020 announcement of the gambling reform in Britain, many news reports and parliamentary discussions included possible changes expected in the white paper. The most concrete being recent proposals to include bans on sports sponsorships and compulsory levies for gambling operators. Anti-gambling stakeholders applauded the proposals, but industry heavyweights warned of negative consequences.
The UK’s gambling support program, GambleAware, proposed including an obligatory levy on all licensed UK providers. As it stands, operators have a choice to contribute a minimum of 0.01% of their annual gross revenue to the cause. GambleAware believes that voluntary contributions cannot hold operators accountable. Four of the largest gambling companies in the country pledged 1% of their earnings annually, but it did not motivate others to follow suit. Subsequently, the government proposed a mandatory 1% levy would come into effect with the reviewed gambling act.
In response to countless campaigns calling for stricter marketing laws and protection of vulnerable citizens, the Department for Culture, Media, and Sport (DCMS) also stipulated an all-out ban on sports sponsorships focusing specifically on the Premier League jersey sponsorships. While some teams supported the idea, others exclaimed how it would negatively impact the clubs financially.
Reports now confirm that the DCMS believes both practices should be limited voluntarily.
Diluted Impact
Many supported the draft changes that pointed toward compulsory levies that fund gambling addiction services. It also supported the removal of gambling brands from Premier League jerseys, especially those affected by gambling harm. Understandably, now that DCMS may drop these regulations caused major disappointment.
Some MPs feel so strongly about the necessity of these laws that they indicate a willingness to rebel if parliament allows the reform to continue without it. A long-standing member of parliament, Iain Duncan Smith, says he will take up arms if the levy remains voluntary. Along with Carolyn Harris, chair of the All-Party Parliamentary Group, Smith believes the removal of these proposed laws leads to an unsuccessful reform. The pair mentioned their willingness to ‘go to war’ with the government on the matter.
The reform aims to renew outdated laws from 16 years ago and curb gambling harm in the country. Purportedly, 0.2% of all gamblers in the UK are compulsive gamblers, and 409 Brits commit suicide because of gambling problems annually.
The British parliament plans to release the white paper in the coming weeks, and until this happens, quibbles will sprout forth.
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