The All-Party Parliamentary Group on Betting and Gaming (APGBG) has an ax to grind when it comes to the U.K. Gambling Commission. Members have called it an “underperforming regulator” that has “gone rogue” and “acted beyond its powers.” The cross-party group said the commission is ideologically opposed to the fine people in the betting industry, according to SBC News.
The group released its “Investigation into the Competence and Effectiveness of the Gambling Commission,” which includes case studies to illustrate how the commission had overstepped its powers or failed in its duties.
The collapse of the BetIndex, for instance. The commission spent two years investigating BetIndex, which is way too long, the lawmakers said. It wasn’t until March 2021 that the commission suspended the firm’s license.
“I am truly shocked to reveal so much evidence of bad practice by the Gambling Commission over the years,” said MP Scott Benton, co-chairman of the APBGG with strong links to the betting sector. “We have been hearing stories for years, but to see it in black and white is pretty stark. To think that members of our gambling industry, one of the most reputable in the world, who pay the commission’s wages, have had to suffer such poor service from their regulator is of the utmost concern.“
The commission is also accused of “ideological mission” to eliminate problem gambling harms using a strategy that doesn’t necessary rely on evidence.
The parliamentary group received complaints about the intrusive nature of affordability checks, a measure which seems to reduce levels of gambling but not problem gambling.
“We believe that the commission is on an ideological mission that will undoubtedly lead to an explosion in the black market.”
In addition to the affordability checks, the commission applied Covid-19 restrictions, misuse of research and more, the group said.
The commission failed in its statutory duty to uphold the Regulators Code, in which governing bodies must “carry out their activities in a way that supports those they regulate to comply and grow.”
And if that weren’t enough, the commission provides a constant negative commentary about industry activities.
The APBGG has unveiled key recommendations to reign in the commission’s wayward ways. For example, the commission should not weigh benefits of decreased problem gambling numbers against economic dereliction and increased illegal gambling. Leave that to elected legislators.
The parliamentary group concluded by saying that there needs to be a distinction between ‘high risk’ and ‘low risk’ gambling operators in order that the ‘level of regulation can be made proportionate.’
And most important is whether the commissions’ job is to reduce the number of problem gamblers.
In related news, former gambling minister, John Whittingdale, told the Betting and Gaming Council much the same thing. Too many restrictions could drive people towards black market sites, thus doing nothing to prevent gambling harm, according to comments in the Racing Post.
Whittingdale spoke at the annual meeting of the Betting and Gaming Council January 20 in London. He called some proposals for affordability checks “extraordinary” and that he’s seen no evidence that gambling advertising increased problem harm.
According to a report last year by PwC, the numbers who visit black market gambling websites has doubled to around 460,000.
“If you make it too hard for people or put too many burdens on people who want to gamble in a safe way and who can afford to do so, then they will resent that and there is a risk they will look elsewhere,” Whittingdale said.
A poll published by the council indicated that fewer than one in five punters would be okay with checks on their finances as a prerequisite for gambling.
“I have to say I’m concerned at those who have suggested that, for instance, every person wishing to place a bet should first have to register and then would be assessed as to whether or not they could afford to do so by some government body,” Whittingdale said.
Whittingdale said gambling advertising and sponsorship were areas “where there is a lot of pressure for further restriction”, including calls for outright bans. “I was very much aware that firstly the evidence that advertising leads to an increase in problem gambling is pretty much non-existent.”
That’s not to say there shouldn’t be some requirements well short of a ban.
When Chris Philp succeeded Whittingdale as gambling minister in September it was suggested he would be tougher on the industry.
“I think he will proceed on the basis of evidence and will wish to preserve the industry as one which plays a major part in our leisure economy, creates jobs and benefits the Treasury.”
With the back and forth over what the U.K. Gambling Commission will do when the white paper comes out, Michael Dugher warned lawmakers to filter out the extremist views on reform. Writing an opinion piece on PoliticsHome, Dugher reiterated the need for industry reforms to be “led by the evidence.”
The most contentious element relates to player affordability. Anti-gambling ministers have pushed for mandatory affordability checks on consumers, according to SBC News.
Consumers oppose such a move, but a YouGov poll published in January indicated only 16 percent appreciate such arbitrary checks.
Almost 60 percent of players believe that imposed blanket checks on affordability “would lead to a large or substantial risk of customers using unlicensed sites”.
Council members have invested to improve safer gambling and customer safety programs.
“We are actually in favor of further enhanced spending checks but believe the focus should be on problem gamblers or those at risk, not disrupting the enjoyment of the overwhelming majority of people who bet safely and responsibly,” Dugher said.
Dugher was not happy with publication of a report by the Betting and Gaming APPG that branded the Commission as a “underperforming regulator that acted beyond its regulatory powers.”
“The report reminded me of the previous call by Iain Duncan-Smith to abolish the GC. I disagree with both. The GC is not perfect and is changing, but the regulator is rightly and importantly pushing forward steps to further raise standards on safer gambling.”
BGC members voluntarily imposed strict age verification checks, a ban on credit card payments, advertising restrictions and safety changes to game designs.
Most of all it is working as problem gaming rates in a year have dropped from 0.6 percent to 0.3 percent.
“In the end, when it comes to reforming gambling, there are extremists on both sides of this debate. There are the anti-gambling prohibitionists on one extreme and there are still sadly a few people in the industry who aren’t prepared to embrace change.”
Another concerned voice belongs to the horse racing industry which refers to the outcome of the gambling review as an existential threat if stringent affordability checks and betting restrictions result from the overhaul.
Speaking on Luck On Sunday, professional gambler Neil Channing raised concerns about the potential threat the outcome could have on the financial health and personal freedoms.
A white paper is expected to be published in March or April with recommendations for revising the 2005 Gambling Act. The bottom line could create affordability checks, deposit limits, stakes and losses, and restrictions on advertising
“The threat isn’t a superlative, it isn’t hyperbolic. I really believe it.” Channing said. “The bookmakers have made the argument that people will stop betting on horse racing if they have to send in 12 months of bank statements, P60s and that kind of stuff.”
A Racing TV survey last month revealed that more than 86 percent of respondents believed that enhanced affordability checks could drive betting underground.
“Other operators work abroad and divert their VIPs into foreign territories, and then there is straight up illegal gambling. I have been approached by plenty of people who have said that they can get me on. ‘We’ll pay you in the car park or via Bitcoin, it’s not that difficult.’”
“A key point is that the bookmakers themselves will talk about that, if we bring in affordability checks, it will push people into the black markets.
“Stricter gambling measures have been implemented by bookmakers in recent years, with companies attempting to raise awareness of problem gambling. Begambleaware.org also offer free, confidential help and support to anyone who is worried about their or someone else’s gambling issues.
“The Racing TV members who filled in the survey would say they are interested in gambling on horse racing and not interested in slots. They see it as a hobby, a cerebral activity, and they see it as a puzzle. It is much harder to get addicted to something where you are having three or four bets a day, compared to spinning a roulette wheel every 30 seconds.”
“It could have come in from January 2021, because it was felt the Gambling Commission had the ability to do that. However, because of the sheer amount of people who responded to the conversation, the Gambling Commission went ‘Oh, wow. We thought we would get 300 responses and we got 16,000, so we will kick this into the long grass and then the politicians can tie it into their act.
“It was a win for the horse racing industry to make that happen. We are now fighting for it to not be in the new Gambling Act.
In related news, Rank Digital Gaming and Annexio Ltd. have agreed to pay a regulatory settlement of £1.3 million (US$1.7 million), the commission said. The agency conducted separate investigations that discovered social responsibility failures, hence the settlements.
Rank Digital, which operates grosvenorcasino.com, meccabingo.com meccagames.com and bellacasino.com, will pay a £700,557 regulatory settlement based on information collected between October 2019 and February 2021, that indicated issues with customer interaction, identification, and self-exclusion.
Rank also acknowledged manual faults following the platform migrations of bellacasino.com and meccagames.com, that had hindered the brands self-exclusion safeguards.
Trading as Lottogo.com, Annexio will pay £612,000 in relation to social responsibility and money laundering failures based on inquiries between October 2019 and November 2021.
Annexio has admitted delays in its actions allowed people to gamble significant sums of money before limits were applied.
The commission confirmed both operators disclosed their failures and took steps to remedy the situations.
“We expect high standards from operators to ensure gambling in Britain is safe and crime-free. Those businesses that fail to meet these standards will find themselves facing costly regulatory action,” said Helen Venn, Gambling Commission executive director.
