BGC cites new research to highlight dangers of overregulation

The Betting and Gaming Council, a trade body that advocates for fair gambling laws and lobbies on behalf of the industry, has posted the results of a new research provided by EY. The research comes at a time when the United Kingdom is expecting its first major overhaul of gambling laws since 2005 that could introduce a ream of changes, including tighter affordability checks, spending limits, betting limits, and cool-down periods among others.

The new report, the BGC says, backs another recent poll which suggests that 3 in 4 people in the United Kingdom do not agree to gamble companies conducting mandatory affordability checks. These checks are now deemed necessary by government officials and if passed, punters would need to prove that they are able to gamble past a certain amount based on a detailed overview of their finances.

Meanwhile, the gambling industry in the United Kingdom has continued to have a solid impact on the economy with some £7.1bn in gross value-added contribution, the BGC states. EY’s findings noted that there is already a decline in online gambling such as it is, not least because of the reopening of land-based venues in mid-2021 and the mounting costs of living.

The study suggests that should consumers feel more squeezed playing online due to overregulation, they could turn to the black market, hurting the gambling industry’s channelization and with it, opening fresh wounds in the regulated market. The BGC agrees that countries that have acted high-handedly insofar as betting restrictions go have also seen a very high market of black market participation.

The BGC claims that more than 66% of Norway’s gambling market is conducted with illegitimate operators. A similar rate of 57% is cited in France. While the BGC does not detail how much share the black market has in the United Kingdom, the trade group is confident that this is the way the country is headed lest it approaches the White Paper Review with care.

Michael Dugher, Betting and Gaming Council CEO, emphasized the importance of approaching the matter reasonably. He said:

"We urge the Government to find an evidence-led, balanced White Paper that protects the vulnerable, allows the vast majority who bet safely to continue to do so, and crucially allows business to thrive."

Dugher reminded us that the rates of problem gambling in the UK were at a low 0.3% of participants, which was a milestone achievement based on international standards. If anything, Dugher insisted that checks should cover vulnerable consumers and not come as part of a blanket approach against all consumers and gamblers, which could drive up interest in black market operations instead.

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