{"id":132340,"date":"2023-05-20T08:40:01","date_gmt":"2023-05-20T07:40:01","guid":{"rendered":"https:\/\/politicscouk.wpengine.com\/?post_type=reference_term&p=132340"},"modified":"2023-05-20T08:40:01","modified_gmt":"2023-05-20T07:40:01","slug":"gambling-white-paper","status":"publish","type":[5744,5604],"link":"https:\/\/www.politics.co.uk\/reference\/gambling-white-paper\/","title":{"rendered":"Gambling white paper"},"content":{"rendered":"

Overview<\/strong><\/h2>\n

In April 2023, the UK government published a white paper setting out how it wants gambling regulation to change.<\/p>\n

Speaking in the House of Commons after the publication of the white paper, culture secretary Lucy Frazer said the long-awaited Gambling White Paper will help “redress the power imbalance between punters and operators” while preventing addiction.<\/p>\n

The white paper is the result of a review launched in 2020, and its publication had previously been postponed multiple times.<\/p>\n

The announcement of a review followed the explosion of online betting and a number of high-profile cases where customers suffered significant losses or took their own lives as result of gambling. Over 16,000 submissions were received in response to the government\u2019s call for evidence prior to the white paper\u2019s publication.<\/p>\n

Under the government\u2019s proposals, online casinos will face tougher restrictions, but the majority of measures are subject to further consultation, signaling even more delay.<\/p>\n

The government billed the changes as providing much-needed regulatory clarity, and helping establish the social and legal framework of the gambling sector in the UK.<\/p>\n

The white paper marks the first major attempt to change to the regulation of the gambling industry since the Gambling Act 2005 was passed, helping \u2014 the government argues \u2014 to redress the power imbalance between punters and gambling companies when things go wrong.<\/p>\n

Around 300,000 people in Great Britain are estimated to be experiencing \u201cproblem gambling\u201d, which is defined as gambling to a degree which compromises, disrupts, or damages family, personal or recreational pursuits. A further 1.8 million are identified as gambling at elevated levels of risk.<\/p>\n

Key proposals in the white paper include:<\/p>\n

Affordability checks for punters making big losses;
\ncurbs on digital marketing;
\nmaximum stakes for online slot machines of between \u00a32 and \u00a315 for all customers subject to consultation, bringing online gambling in line with high street \u201cbricks-and-mortar\u201d equivalents;
\nand a new statutory levy which will see gambling companies required to fund more research, education and treatment.<\/p>\n

Background<\/strong><\/h2>\n

In 2020, then-PM Boris Johnson launched a review of the Gambling Act 2005 after concerns were raised that the document might need to be updated to apply to the digital age. The review was widely expected to lead to a white paper outlining modifications to the 2005 Act.<\/p>\n

In February 2023, prime minister Rishi Sunak created the new Department for Science, Innovation, and Technology (DSIT) and a \u201crefocused\u201d Digital, Culture, Media, and Sport (DCMS).\u00a0The change led to another change in culture secretary, with Lucy Frazer now entrusted with the proposals after incumbent Michelle Donelan was shifted to (DSIT).<\/p>\n

Since the announcement of the gambling review, there have been four culture secretaries: Oliver Dowden (2020-2021), Nadine Dorries (2021-2022), Michelle Donelan (2022) and Lucy Frazer (2022- ).<\/p>\n

Sunak\u2019s recent cabinet shuffle also caused frustration as to junior ministerial changes. Paul Scully, then a DCMS minister charged with delivering on the review, was moved out of his post.<\/p>\n

There are 3 core areas marked out for change under the white paper<\/p>\n

1. Affordability<\/strong><\/span>
\nThe gambling white paper proposes two thresholds at which checks on affordability for punters should take place. The first is a “moderate loss threshold” at either \u00a3125 net loss in a rolling month period or \u00a3500 net loss within a rolling year period. In this instance, indicators of the punter\u2019s “financial vulnerability”including average postcode affluence and bankruptcies will be checked.<\/p>\n

The second check will be triggered by what the white paper describes as “binge gambling”, that is a net \u00a31,000 loss in a 24-hour period. This will lead to an “enhanced spending check\u201d, the details of which are still subject to consultation.<\/p>\n

2. Levy reform<\/strong><\/span>
\nWith the gambling white paper, the government has begun the process of reviewing the statutory gambling levy.<\/p>\n

Under the Gambling Act 2005, the secretary of state for culture can make regulations requiring gambling companies to pay an annual levy to the Gambling Commission, also created under the Act.<\/p>\n

The Gambling Commission requires all licensed operators\u00a0to make a voluntary contribution of 0.1% of net revenue towards the research, prevention and treatment of gambling-related harm.<\/p>\n