UK Minister Lucy Frazer Anticipates Release of Gambling Policy Document This Month
UK authorities are eagerly awaiting the government to unveil the gambling white paper. Although a delay in its publication is still a possibility, UK Culture Secretary Lucy Frazer speculates that it could arrive within the upcoming three weeks.
Rumored to be the biggest overhaul in almost twenty years, the UK's overhauled gambling infrastructure is expected to incorporate significant modifications. The long-awaited reforms, now over two years past due, have sparked discontent and even a sense of stagnation within the gaming industry.
The House of Commons is set to take a break from March 30 to April 17 for the annual Easter holiday, and releasing the white paper immediately upon their return is considered impossible.
Inertia is taking its toll. Whispers of mandatory affordability checks, increased taxes, and stringent spending limits have already compelled gaming operators to implement changes, leading to substantial income reductions and consequently, tax revenue loss.
The shift towards revamping the UK's gaming sector started in earnest at the end of 2020 with an attempt to modernize laws that had been in place since at least 2005. On Thursday, speaking in the House of Commons, Frazer confirmed that the government would release the reforms "soon."
This follows last week's "soon" promise from the Department for Culture, Media and Sport (DCMS) entrusted with the update. However, if the government fails to present the white paper by the end of the month, it won't be able to do so until May.
Racing Takes a Hit
The British horse racing industry is among the casualties. The industry has traditionally enjoyed immense popularity in the country. But it is estimated to have lost at least £40 million (US$47.77 million) in revenue.
The absence of the white paper and stricter controls imposed by the UK Gambling Commission (UKGC) have contributed significantly to this loss.
The upcoming Cheltenham Festival will serve as a litmus test for race betting. Recent betting tendencies have seen a shift from online and retail betting venues towards bookmakers at the tracks, as the latter can evade restrictions more easily, according to the Racing Post.
Gaming Operators at a Standstill
In a recent financial status report, gaming operator Entain, one of the industry leaders, reported a loss of £100 million (US$119.44 million). This loss was partly attributed to a dramatic drop in online activity reportedly caused by the UKGC's actions and the rumors of mandatory affordability checks in the white paper. Entain's Chief Financial Officer, Rob Wood, emphasized that the loss equates to roughly £100 million in lost revenue, a significant figure indeed.
It is crucial to draw the attention of the UK Parliament to the harm being inflicted here, as customers aren't ceasing their betting activities and it's absurd to assume so, said Wood.
Proposed mergers and acquisitions, such as those involving Entain and MGM or DraftKings, have encountered obstacles due to the uncertainties surrounding the future of UK gaming. Entain Chief Executive Officer Jette Nygaard-Andersen acknowledges that "certain obstacles" in the UK market have been posing challenges for the industry.
Although the company continues to demonstrate strength, it reported a 92.5% decrease in net profit for 2022, totaling $23.3 million. Despite this dip, net gaming revenue increased by 11.9% compared to 2021, reaching $5.15 billion.
