King’s Speech 2024: implications for UK gambling sector
The King’s Speech 2024 defines culture media and sport and outlines the Labour Party’s commitments to reform gambling regulations and football governance, with the aim of reducing harm and ensuring financial sustainability. These commitments reflect the party’s dedication to protecting communities and giving power back to the people. The document serves as a guide for members of the House of Lords to prepare for the debate on the speech, and does not constitute official information about the government’s intentions or provide a complete list of bills to be announced.
The document, written in anticipation of the King’s Speech, serves as a guide for members of the House of Lords to prepare for the debate on the speech.
The first key area addressed is gambling regulatory change. The Labour Party has expressed its commitment to strengthening gambling regulations to mitigate gambling-related harm and reflect the party’s dedication to protecting communities and give power back to the people. This commitment reflects the ongoing changes in the gambling sector since the introduction of the Gambling Act in 2005. The landscape of gambling has significantly evolved over the years, necessitating a response that addresses these changes and ensures the continued regulation and fair practice within the industry. The party aims to reform gambling regulation and enhance user protection, while continuing to work with the industry to ensure responsible gambling.
The Labour Party’s new gambling minister Stephanie Peacock had previously supported gambling reforms outlined in the Conservative government’s April 2023 white paper. These reforms were set to be implemented regardless of the general election result. The white paper, titled ‘High stakes: gambling reform for the digital age’, addressed the issues caused by ‘problem gambling’, which affects an estimated 300,000 people in Great Britain and puts a further 1.8 million at elevated risk.
The white paper proposed several measures to reform the sector, including stake limits and financial checks to prevent consumers from suffering harmful losses, a statutory levy paid by certain operators directly to the Gambling Commission to fund research, education, and treatment of gambling harms, and a new ombudsman to handle disputes and provide redress where a customer suffers losses due to operators’ social responsibility failure.
The Betting and Gaming Council (BGC), the industry’s representatives, welcomed the Labour Party’s manifesto, expressing eagerness to work with the party to continue evolving protections in the sector. However, concerns have been raised about the impact of affordability checks on British horse racing finances.
Influence of football governance on sports betting
The second key area addressed in the King’s Speech document is football governance legislation. The Labour Party’s manifesto committed to the introduction of a football governance bill, which would establish an independent regulator focused on the financial sustainability of football clubs in England. The party also pledged to reform football governance to protect football clubs across communities and to give fans a greater say in how their clubs are run.
A Football Governance Bill was introduced by the Conservative government in the 2023-24 parliamentary session with a similar objective. Although it received cross-party support, it fell at the committee stage due to the calling of the general election and the dissolution of parliament. The bill was designed to create an autonomous football regulator and a fresh regulatory framework dedicated to reducing the risk of clubs disappearing from fans and communities. It set specific goals aimed at ensuring the financial stability of clubs, enhancing systemic financial resilience, and preserving the legacy of English football.
During the bill’s second reading on 23 April 2024, Thangam Debbonaire, then shadow secretary of state for culture, media, and sport, indicated Labour’s full support for the bill. She believed that the law could be transformative if things were done right during its passage through Parliament and in the crucial implementation phase. The potential reward could be greater financial sustainability across the entire football pyramid, and importantly, fans having a more significant influence in the management of their clubs.
However, she also spoke about the importance of looking further at a number of issues during the bill’s passage. This included ‘parachute payments’ (payments paid to clubs relegated to the Championship from the Premier League) and the extent of the regulator’s powers to decide how finances (such as TV revenue) should be distributed in the event of deadlock between the leagues. During Labour’s election campaign, Sir Keir Starmer (photo above on the left with the King) suggested that there would also be a review of football start times and pricing as part of the reforms.
Rising concerns on impending gambling survey
This month promises to eventful for the gambling sector in the UK. As well as the King’s Speech, the release of the Gambling Survey of Great Britain on 25 July is expected to stir significant discourse. as potential backlash looms over the anticipated increase in problem gambling statistics. This development, coupled with the ongoing legislative changes, indicates a dynamic period ahead for the sector.
UK gambling officials are concerned that the upcoming release of new problem gambling prevalence statistics could potentially derail long-awaited white paper policy changes. The reformulated Gambling Survey of Great Britain, set to be released on 25 July, is expected to show higher numbers for problem gambling. This could provide critics with ammunition to impose harsh restrictions, according to Dan Waugh of Regulus Partners, who warned that it “could derail the white paper”.
The Gambling Commission has stated that the newer results cannot be compared to the older surveys due to different methodologies, indicating that only the methodology has changed, not the problem gambling rate.
The expected new statistics are likely to feed into the public policy narrative that problem gambling in the UK is at a higher level than previously thought, necessitating more restrictive regulation. However, there are concerns that the new survey could “substantially overstate” levels of both gambling and gambling harm. Despite criticism, the Gambling Commission defended the survey, stating that it provides insight into the range of experiences and associated trends that different consumers are having, allowing for exploration of the nuance and complexity of the impacts of gambling.
