In 2023, the previous Conservative Government published their review of the 2005 Gambling Act, in a bid to catch up with the fast-paced evolution of the industry. The results of the review consisted of some effective modernisation of regulations to benefit the industry, such as cashless payments, lines of credit for high-net-worth overseas players and increasing the number of slots in land-based premises. Much of these reforms were still dependent on further consultation by the Gambling Commission, but the direction of travel was positive.
We are now over a year on from the publication of the Government White Paper, but seemingly no closer to seeing the implementation of the proposed changes. With many of the measures announced put out to further development and consultation, and the General Election removing the Conservatives from power and ushering in a large Labour majority, the future of the regulations, and whether Labour may wish to go further than their Conservative colleagues remains a key concern.
For the industry, Labour’s ascendancy is something to be wary of. In the review of the White Paper, the then Shadow Gambling Minister, Alex Davies Jones described the voluntary Premier League ban on gambling adverts on the front of sports shirts as “really quite weak”. She pressed the Minister to go further as well as on stake limits which are dependent on how “dangerous” a gambling product was, and on “loot boxes”, a cultural phenomenon of micro or small transactions first pioneered in video games. These areas would likely be where Labour will seek to strengthen the proposed policies.
Now, all eyes turn to the new Gambling Minister, Stephanie Peacock MP, who will inherit the proposed changes including the very sticky topic of affordability checks for betting punters. While it seems that gambling reform will not be a top Labour priority (there was nothing in the recent King’s Speech for example) the manifesto made a commitment to strengthening the regulations on gambling to reduce gambling-related harm, so there will be some movement in time. There is tremendous pressure from external campaign groups for government to go much further in regulating the industry, and state regulation to prevent harms is an instinct that is much more naturally at home in the Labour Party than in the Conservative.
While the good news for the industry is that the Labour Manifesto has pledged to work with the industry to achieve this, this manifesto commitment has already come under fire in the left-leaning media, branding it “irresponsible”, and arguing for a greater focus on prevention. As these voices are already active following the publication of the manifesto, Labour could readily be persuaded to adopt a more draconian regime If dialogue breaks down with the industry. It appears likely that the gambling reform groups will seek to force such an outcome and cut the industry out of the policy development conversations, depriving them of a seat at the table.
The collapse of the Conservative vote in the General Election has meant that although the party remain the opposition, their number of sitting MPs has been depleted to a point where they will not have any meaningful ability to change legislation as it passes. This coupled with the Conservative’s much predicted tack to the right will present a serious challenge to many highly regulated and scrutinised industries.
The gambling industry lost many of their key advocates from the Conservative benches in the General Election, and while the party and its new leadership (whoever they may be) may be receptive to representations from the industry, this will provide a window for Labour to put clear red water between themselves and the Conservatives, using the Tories likely ideological opposition to increased public health interventions as an example of the party being divorced from the needs of people. This blank cheque that Labour holds should be concerning for the industry, especially if it moves with media and campaign group pressure and begins to develop policy for the gambling industry that listens to the calls of the campaign groups more than it heeds business.
There is a more pressing issue for the sector however, namely that until any new regulations are implemented, industry must wait to adapt and modernise. This means that the industry will be forced to rely on the outdated regulations that do not meet the needs of business, or of punters. If coupled with a move towards stricter regulations and a less friendly stance to industry from Labour, the UK sector could lose customers to attractive overseas destination gambling locations.
A quick walk around the floor of the International Casino Exhibition earlier this year makes this issue starkly apparent. The products are evolving quickly, as are the payment methods and associated industry services. Talking to one exhibitor for financial handling and transfers about the UK as a market, she tells me “we don’t really do much business in the UK… we actually have a much bigger presence in Burkina Faso.” Make of that what you will, but it should be a warning to Labour, with their growth ambitions, that too much regulation could destroy an industry worth billions to the UK economy.