The government has announced a raft of new gambling reforms, including a new statutory levy on big firms, in a bid to crack down on online addiction.
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Other measures announced by Culture Secretary Lucy Frazer include maximum stakes for online slot machines and checks to “better protect even those unable to afford small losses”.
The reforms are to be formally set out in the government’s gambling white paper, which has been published today following a series of delays.
Outlining the government’s plans in the Commons, Ms Frazer said the white paper will “force companies to step up their checks” to protect vulnerable customers.
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She told MPs: “When gambling becomes addiction, it can wreck lives. Shattered families, lost jobs, foreclosed homes, jail time, suicide.
“Gambling problems in adults have always been measured in terms of money lost, but you cannot put a cost on the loss of dignity, the loss of identity, and, in some cases, the loss of life that it can cause.
“We need a new approach that recognises a flutter is one thing, unchecked addiction is another. So, today we are bringing our pre-smartphone regulations into the present day with a gambling white paper for the digital age.”
Ms Frazer said the white paper would cover six areas of reform, including affordability checks “when losses are likely to be unaffordable or harmful for punters”.
She said the government also plans to bring online slot games more “in line with bricks and mortar equivalents” with a stake limit on online slots of between £2 and £15 – although this is subject to consultation.
A new statutory levy will see gambling companies required to fund more research, education and treatment into addiction.
She also touched on advertising, which she said saw punters “drawn back into the orbit of online companies with the offer of a free bet or some free spins”.
“So, to help stop problem gamblers being bombarded, the Gambling Commission has beefed up its rules on online VIP schemes, already resulting in a 90% reduction in these schemes, and it will now consult on making sure bonus offers are not being deployed in ways which only exacerbate harm,” she said.
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Ms Frazer said there will be further measures to stop children from gambling and using scratch cards, but she did not specify what the measures would be.
The Premier League has said gambling logos will be removed from the front of players’ shirts after the 2025/26 season to reduce exposure to gambling.
Responding for Labour in the Commons, shadow minister Alex Davies-Jones branded the white paper “very light in substance” while also criticising the delay to its publication.
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She said Labour “welcomes many of the measures in the announcement” and said it was a “move in the right direction”.
However, she sharply criticised the fact that the Premier League had voluntarily decided to ban gambling sponsorship only on the front of football shirts, arguing that the measure was “weak” because it won’t come into effect in three years.
She also called for clarity on the proposed levy on gambling firms and the beefing up of the gambling regulator, adding that it was “vital that affordability checks are set independently from the industry” to ensure the safety of customers.
Former Tory leader Iain Duncan Smith welcomed the white paper but said it did not go far enough to protect children from advertising.
“On advertising and children, I simply want to say – not far enough,” he said.
The government has been under pressure to act following a number of cases in which people have taken their own lives over their addiction to gambling.
According to the Gambling Commission, around 138,000 people could be problem gambler, with around 1.3 million people engaging in either moderate or low-risk gambling.
Last year, the parents of Jack Ritchie, 24, accused the government of being “asleep at the wheel” in their failure to regulate an industry they described as “predatory” and “parasitic”.
A landmark inquest into the suicide of Mr Ritchie found that regulation, NHS treatment and government warnings about the dangers of gambling were “woefully inadequate”.
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The inquest in Sheffield was the first of its kind to examine the link between suicide and gambling and the way it is regulated.
Gambling With Lives, a charity that was set up by families bereaved by gambling-related suicide, said ahead of the report’s publication: “We’ll welcome any positives in today’s white paper, but it seems much will be pushed to consultation, meaning more delay.
“We’ve waited years, more than 1,000 people have died while the industry has made billions in profit from harm. We need action now to stop the deaths.
New figures show the NHS received 990 referrals for treatment between April and December 2022, compared with 668 the same period the previous year.
NHS Mental Health Director Claire Murdoch said: “The NHS has long called for action to tackle gambling addiction which destroys people’s lives – I have personally heard of countless examples of people bereaved by gambling addiction or who have contemplated suicide – so I am delighted that the government has committed to tackling this cruel disease.
“While the NHS is treating record numbers, with almost 50% more referrals last year compared to the previous year, it should not be left to the health service to pick up the pieces left behind by a billion-pound industry profiting on vulnerable people, so I fully endorse the statutory levy set out in today’s white paper and look forward to reading the proposals in detail.”
Peter Jackson, chief executive of Flutter Entertainment plc, said: “We welcome the publication of the white paper, which marks a significant moment for the UK gambling sector.
“Whilst we will need to review the detail of the proposals once published, we believe proactive change will lead to a better future for our industry.
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“As such we have introduced industry-leading safer gambling controls via our ‘Play Well’ strategy over the last few years, including setting mandatory deposit limits for customers under age 25, reducing online slots staking limits to £10 per spin and making material investments in our safer gambling operational capabilities.
“We will continue to constructively engage with the government and Gambling Commission as part of any subsequent industry consultation processes, with a focus on providing support to the minority at risk of gambling harm without interfering disproportionately with the enjoyment of the vast majority.”
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email [email protected] in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK