Preparing for the impacts of gambling reforms in the UK
IAGR partner, Greo Evidence Insights, provides IAGR members with a snapshot of policy-level approaches to prevent and reduce gambling-related harms worldwide. Greo is an independent, non-profit organisation that helps organisations strengthen their programmes, policies, and practices by harnessing the power of evidence and stakeholder insight.
As part of IAGR2023, Greo is summarising evidence related to topics in the conference programme. This month, Greo has shared a selection of evidence related to key topics in the Gambling Act Review white paper published by the UK Government, and relevant examples of evidence-informed action taken in jurisdictions internationally.
This article is inspired by the the IAGR2023 session, ‘Doing the right thing in a changing world: The regulatory view from Great Britain’ with Andrew Rhodes, Chief Executive of the the Gambling Commission in the UK.
Preparing for the impacts of gambling reforms in the UK
The UK gambling market is now one of the largest commercialised gambling markets in the world in terms of gambling revenue. Earlier this year, the UK Government released the Gambling Act Review white paper, High Stakes: Gambling Reform for the Digital Age, which outlines their plans for reforms to gambling regulation following the review of the Gambling Act 2005.
The gambling market has changed significantly since the Gambling Act Review 2005 was passed, which makes public consultations a vital component of plans to implement reforms. Since the publication of the white paper, the Gambling Commission, which regulates most forms of commercial gambling in Great Britain, has completed consultations with stakeholders on proposed changes in four areas: 1) age verification in premises; 2) online games design; 3) direct marketing and cross-selling; and 4) financial risk and vulnerability checks for online operators, also known as affordability checks.
A large proportion of the over 3000 responses to this first round of consultations focused on affordability checks. The Gambling Commission consulted on “light touch” checks for vulnerability at moderate levels of spend that are proposed to take place at £125 net loss within a month or £500 within a year. They also consulted on a proposed financial risk assessment at a higher level of spend of £1,000 net loss within 24 hours or £2,000 within 90 days. Stakeholders have identified many questions and some potential unintended consequences of changes related to affordability assessments. In response, the Gambling Commission released a video and blog post summarising details related to their proposed approach.
Another area for reform centres on direct marketing and cross-selling. Exposure to gambling marketing and advertising is associated with increased gambling intentions and spending. As a result, gambling marketing and advertising may increase the risk of people experiencing gambling-related harm, especially children, youth, young adults, and other vulnerable groups. The government’s proposed changes aim to provide people who gamble with more control over the direct marketing they receive and the channels through which they wish to receive it. This would be through requirements for people to opt-in to receive certain forms of marketing.
What can other jurisdictions learn from current regulatory developments in the UK, and how do the proposed regulatory changes align with approaches taken in other jurisdictions?
Recently published gambling research
The following resources and plain-language research article summaries highlight emerging evidence related to affordability checks and income-driven loss limits:
- Setting gambling loss limit cut-offs based on income
- Using account data to identify online problem gambling
- Gambling legislation on duty of care and limit setting in 22 European countries
- Adopting an affordability approach to gambling harm reduction
The following plain-language research article summaries highlight emerging evidence related to marketing and advertising:
- Exploring the link between gambling marketing and unplanned gambling spend in Britain
- Social media gambling ads: How are they impacting children and youth?
- Frequency and types of gambling ads televised during the men’s 2020 Euro soccer tournament in the United Kingdom
- The impact of gambling-related advertising: An umbrella review
- Exposure to different types of gambling promotions and gambling behaviours among Australian secondary school students
- How do people who gamble view gambling marketing?
Evidence-informed action
The following are international examples of regulatory reform related to affordability checks and marketing and advertising. Regulators might consider these insights when creating or revising regulations.
Affordability checks
Sweden
In 2021, Svenska Spel, Sweden’s state-owned gambling operator, introduced financial checks on people who requested a deposit limit above SEK 10,000 (approximately $1,000 USD) a month or more. In 2022, Svenska Spel also introduced new limits for people aged 20 to 24 who request a deposit limit of SEK 5,000 a month or more.
- Svenska Spel finds youth problem gambling cut after deposit limits
- Gambling legislation on duty of care and limit setting in 22 European countries (see page 11)
Marketing and advertising
Australia
As of April 2023, gambling operators in Australia are now required to include new warnings in all their advertising. Adverts must include mandatory pre-written taglines such as, “Chances are, you’re about to lose,” along with help-seeking information. Other messages include, “What’s gambling really costing you?”, “Imagine what you could be buying instead,” and “You win some. You lose more.”
Belgium
In December 2022, the Belgian government approved plans to place new restrictions on gambling advertising. The measures will prohibit gambling ads on posters in public places, or the use of personalised advertising by email, post, SMS, social networks, and any printed advertising. The first measures came into force in July 2023. Sports sponsorships will be restricted as of 2025.
