UK Gambling Authority Faces Criticism for Being "Out of Touch" from Public Officials
The proposed affordability checks by the UK Gambling Commission (UKGC) are expected to bring about "severe and entirely devastating" consequences. This is what MP Philip Davies has warned the horse racing sector about the "most unrealistic" regulatory organization in the UK. He's not alone in the government in expressing this viewpoint.
In late April 2023, the UK's gambling whitepaper was finally released after many delays. Hidden within it are suggested actions that would urge operators to perform two levels of client affordability evaluations.
In the first tier, once people have reached a spending limit of £125 (US$159), they will be prompted to examine the finances of those residing locally. Meanwhile, more in-depth and personal financial control will be triggered when individuals surpass the £1,000 (US$1,272) threshold within a 24-hour period or £2,000 (US$2,544) in a 90-day period.
The UKGC detailed a comprehensive method for imposing these access controls back in July, with an open consultation period that has also been initiated. In this strategy, it's specified that a thorough financial review must be carried out every six months to confirm any changes in the players' financial status.
Davies, who's consistently questioned the regulator's capabilities, also criticized government officials regarding these controls. He believes these checks will make betting too complicated and may prevent thousands of bettors from enjoying the activity through regulated channels.
He specifically objects to the idea of calculating net losses using a seven-day rolling period. He argues that this is unreasonable, as it would make certain bettors face checks depending on the sports schedule.
While some government officials and the UKGC claim that affordability checks are necessary to curb problem gambling, no one has explained why so many resources are needed for an issue that, as the UKGC has already acknowledged, only affects 0.2% of the market.
Feedback on the proposals is accepted by the UKGC until October 18. It's a good time to clarify this.
Jobs and Tax Revenue at Stake
Woodman points out in an op-ed piece on Tuesday that the checks run counter to the needs of the government. Instead of finding ways to increase tax revenue, which the UK desperately needs, the government is prepared to drive bettors to unregulated platforms that don't contribute to the economy.
Woodman says that the consultation followed the Gambling White Paper, which heard a lot from the betting industry and the anti-gambling lobby but only a little from the millions of normal gamblers who just want to have a reasonable bet without having to reveal their financial history, with little protection over their personal information, to a faceless corporate institution.
He believes the reforms will not only affect tax contributions, but jobs as well. As more bettors move to offshore platforms, some of the 88K people employed by the horse racing industry might get laid off to compensate for the revenue losses.
Woodman estimates that "hundreds of thousands" of bettors could switch to unregulated sites. This doesn't only mean a loss in tax revenue, but also a reduction in responsible gambling oversight.
The co-founder of the Gamblers Consumer Forum also stresses that there's no evidence connecting affordability checks with a reduction in gambling addiction. Apparently, no one in the UKGC or some in government understands the subject well. According to various studies, addiction is "not driven by money." It would also be known that, as Woodman points out, an addict who loses one vice usually seeks another to replace it.
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Source: www.casino.org
