The recently released 336-page white paper on reforming the U.K.’s 18-year-old gambling law includes many muscular reforms, such as restrictions on advertising and online player protections. Some U.S. and Canadian responsible gaming advocates anticipate an impact on policy on this side of the pond, Sports Handle reports.
The much anticipated, but long-delayed white paper was produced by the Department For Digital Culture, Media, and Sport through a process that began in late 2020 and was delayed by the pandemic. It was also delayed by the chaos last summer when the U.K. experienced three prime ministers in quick succession: Boris Johnson, Liz Truss and finally Rishi Sunak, whose government released the document.
The U.S.’s National Council on Problem Gambling Executive Director Keith Whyte anticipates that the proposed reforms will affect how sports betting is conducted in the U.S.
In an email to Sports Handle he wrote: “We’re watching the impacts of the white paper very closely and will see which research and recommendations are a good fit with U.S. law, regulations, and culture. I think there will be more than a few.”
Whyte believes it will be harder for U.S. companies to avoid implementing stronger responsible gambling programs. One reason being that companies licensed to operate in both jurisdictions will naturally have to adopt the more restrictive requirements.
The white paper sets new requirements of protecting online players, advertising of sports betting and advertising aimed at the vulnerable, including the younger population. In response to a call for evidence, the department received more than 16,000 submissions from stakeholders.
The secretary of state for culture, media, and sport, Lucy Frazer, sometimes dubbed by the British press as the “Minister of Fun,” wrote about her goals for reforms: “At the heart of our review is making sure that we have the balance right between consumer freedoms and choice on the one hand, and protection from harm on the other.”
Sportsbooks in the U.K. are not thrilled at the thought of conducting “affordability checks,” on patrons who lose more than £125 ($156) in the space of a month or £500 in a year.
Meanwhile the U.K. Gambling Commission has proposed short-term requirements in advance of actual changes in the law that would mandate background checks on players who lose more than £1,000 within 24 hours or £2,000 within 90 days. The customers who would be affected is about 3 percent, argues the Commission, which also asserts that the vetting process is largely frictionless.
However, operators point out that conducting the vetting will require a large investment in advanced IT that many do not currently possess.
Whyte told Sports Handle, “The financial affordability checks and responsible gambling features are all dependent on modern technology.” He continued, “For the U.S., that means operators may have to make significant investments in their IT systems in order to better balance maximizing revenue with minimizing harm.”
However, since the U.S. has 50 states, and Canada has 10 provinces, unlike the U.K. the reforms envisioned in the white paper may only be adapted in the jurisdictions that already have strict regulations, such as Massachusetts.
One problem gambling expert told Sports Handle: “The only state that I can see would entertain these ideas is Massachusetts, and even those would not be as stringent, at least not at this stage.” On the other hand there are nine states that don’t spend any resources on fighting problem gambling, according to EPIC Risk Management.
Anticipating a crackdown, the English Premier League has self-regulated by forbidding sportsbook sponsorships appearing on jerseys. The U.K. Advertising Standards Authority, an independent regulator, has already adopted changes that ban celebrities in gaming ads. This is something that Ontario, Canada, is also looking at.
Canada’s Responsible Gambling Council CEO Shelley White, told Sports Handle: “We are pleased to see the increased emphasis on safeguards for children and young adults, which are essential in the creation of a comprehensive harm prevention strategy.”
In some ways, gambling regulation aimed at protecting vulnerable populations is more advanced in the U.S. than in the U.K. Sports Handle notes that although the U.K. plans to implement a “statutory levy” on operators to help fund treatment for addiction, many U.S. states already fund gambling treatment through taxes on sports wagering revenue.
