A series of gambling reforms by a House of Lords group could reduce industry profits as much as £974 million (US$1.38 billion) but provide more tax revenue and funding for gambling harm programs.
Those are some of the results from a report put together by Peers for Gambling Reform. The report said post-tax profits for the largest operators like Entain, Flutter, Bet365, William Hill and National Lottery operator Camelot would total £697 million.
The report called for stake limits for online gambling products and guidelines for play speed both on physical and digital play, along with affordability checks. In addition, the report recommended a levy to fund research, education and treatment of gambling-related harm.
Other suggestions called for a ban on direct sponsorship by gambling operators and classifying video game loot boxes as gambling, according to iGaming Business.
A follow up report looks at the financial impact on the industry.
Any stake cap would probably fall between £5 and £1. The higher number would lead to a 14 percent decline in wagers to £1.19 billion. The lower number could reduce bets 36 percent to £891 million.
For affordability checks, the report presumed deposits would be 10 to 20 percent of disposable income up to £100. A mandatory levy is pegged at 1 percent of industry profits, or about £150 million.
Whatever the outcome, the industry’s existing funding of £19 million would be exceeded under a new plan. Part of the reforms suggested would be a ban on sportsbook sponsorship of football teams.
It should come as no surprise that the industry trade group, the Betting and Gaming Council, does not have kind words to say about the Peers for Gambling Reform report. Chief Executive Michael Dugher called the conclusions “economically daft” and the work of “prohibitionists”.
“We welcome the government’s gambling review and we are confident that Ministers will make sensible decisions for the future that are based on serious evidence, rather than the fantasy figures contained in this report,” Dugher said “A minority look down their noses at the millions of working people who enjoy a bet, but the truth is that the overwhelming majority do so perfectly safely.
The Council remains open to change within the industry and hoped the report would be the basis for real reform.
“We are 100 percent committed to change and to continue recent significant improvements in safer gambling,” Dugher said.
One of the reforms under consideration is an end to sportsbook sponsorship of football leagues. Clubs say such a move would be devastating. The English Football League depends in part on sponsorship from sportsbooks for revenue. League chairman, Rick Parry, said a ban on such sponsors could result in the demise of some of its 72 teams.
Barry told BBC Sport that the EFL’s commissioned research found no evidence advertising increases the number of problem gamblers. A 2018 study said there were 245,000 such gamblers in the U.K. Opponents to sports betting disagree and insist such advertisements target gamblers susceptible to problems and make advertisements normal for children.
Parry says a ban could result in £40 m a year in lost revenue on top of a £250 million hole in club finances as a result of the coronavirus pandemic.
Another issue relates to betting partners which advertise in ways other than on shirts. In the Premier League, 17 clubs have such partners.
The EFL commissioned research by Professor Iain McHale at the University of Liverpool, who found gambling participation remained at around 9 percent of the population between 2010 and 2018 and the rate of problem gambling fell from 6 percent to 3 percent.
“I’m not saying 3 percent is an acceptable number or should be ignored,” Parry said. “But the point is that the rate of problem gambling in relation to sports betting has significantly reduced.”
The Big Step, a group that favors the ban, said the problem gambling figures are not accurate. Yet the Gambling Commission admits to a decline in problem gamblers but do not know how much of that results from Covid-related issues.
Parry said there are other options instead of a blanket ban.
“I think that it’s much better to address those problems if we’re involved.”
Former star, Paul Pettigrew, who set up his own charity, GamTalk, to talk to children about gambling, also believes the number of advertisements should be reduced.
“Football is the national sport and the adverts have been subconsciously ingrained into kids from a young age,” he said. “They are bright and colorful and catch your eye. I’m a football fan as well and the last thing I want to see is any clubs going under, but there are plenty of other sponsors they could get.
Tranmere Rovers chairman Mark Palios said his club is one of many that have sworn off betting sponsors.
“In our case, shirt sponsorship income might be £100,000 in a budget of £1.5 million, so it’s not massive and it’s not a zero-sum game. Clubs can find other sponsors to replace what they have already.”
