Asked if the online casino sector should be subject to these kinds of regulatory restrictions, 79 per cent responded “yes” or “maybe”, with 21 per cent of respondents against such measures.

THE QUESTION

This first question for the 100 Club related to recent calls from Tom Watson MP, Deputy Leader of the Labour Party, for the UK to tighten restrictions on online gambling, including potential stake, prize and speed restrictions.

Speaking at a policy seminar last month, Watson said: “The lack of controls on online gambling is leading to vulnerable consumers suffering huge losses. Online gambling companies have a responsibility to protect their customers from placing bets that they cannot afford. But too often, these operators have either neglected the care of their customers or have been too slow in their due diligence.

“We need to see a culture of limits introduced to internet gambling: a system of thresholds placed on the spend, stake and speed of online gambling that will give safeguards to consumers. Labour’s new policies will provide a framework for both industry and the regulator to achieve that.”

With a largely C-level membership dominated by representatives from operators and leading suppliers, alongside regulators, leading affiliates, marketing agencies and global media brands, the CasinoBeats 100 Club was asked: “Should the online casino sector be subject to these kinds of regulatory restrictions?”

THE RESPONSE

The responses were well spread, with more than half (54 per cent) opting for the middle ground: “Maybe, but we should be cautious about introducing additional controls”.

A quarter (25 per cent) welcomed the proposals (“Yes, the sector can always do more to protect vulnerable players”) while just over fifth (21 per cent) were against such restrictions.

Jesper Kärrbrink, the outgoing CEO of Mr Green, is one of those against Watson’s proposals. He commented: “On a global scale, the share of the population having problems with gambling has been the same for the last 30 years.

“Still, the gambling landscape is totally different today compared with then. Then [we had] sportsbook, few casinos, lotteries, etc. Today we have that plus more than 2,500 fast, casino games available 24/7 – thousands of betting opportunities around the clock and all advertised heavily with lucrative bonuses.

“…preventive actions should be focused on individuals, not the game types” – Kärrbrink

“Still, the percentage of problematic gamblers is the same (or actually shrinking slowly). This tells us that the preventive actions should be focused on individuals and not the game types. Players with a tendency to gamble too much will always find ways to gamble. If the UK game operators can’t offer exciting enough games players will go elsewhere, with no security or responsible gambling measures whatsoever.”

However, backing the move is Phil Parry, CEO of Isle of Man-based platform Iforium. Parry said: “Yes but it’s a balance between several factors – the individual’s choice or government/regulatory intervention across the board.

“Regardless, the sector must better understand and adopt the necessary controls and responsible gambling options that fit the profile of that specific, individual player.”

Ian Sims, founder of compliance specialist Rightlander, was one of those who opted for “maybe”. He said: “Anything that allows a player to moderate their gambling is good but when regulation becomes preventative, there needs to be a balance between genuine helpfulness and restricting freedom of choice.”

Lee-Ann Johnstone, CEO of AffiliateINSIDER concurred: “We need to not be so restrictive that the industry is limited so severely that it doesn’t permit companies to grow, offer jobs and contribute to the economy alongside. Finding the balance is going to be key and it will be hard, so we may need to trial a few small measures first.”

“There needs to be a balance between genuine helpfulness and restricting freedom of choice” – Sims

Another cautiously welcoming the proposals is Tobias Svensen, managing director of leading streaming outfit CasinoGrounds. Svensen feels that there is a potential middle ground, introducing a lower maximum stake until the operator has a fuller picture of a player’s finances. “It could be an alternative to have a lower max stake until verified through [KYC] measures, to ensure gameplay at a level that the customer can be comfortable with losing.

“To protect at-risk players I believe the key is to look outside the operators and improve education about gambling addiction, and tighten access to loans without security and other ways that allows customers to play above their means.”

Gavin Hamilton, CEO of Red Tiger, is another potentially backing the move. “Clearly as an industry we have an obligation to protect the most vulnerable players and we should always strive to find ways to improve how we do this.

“Labour are approaching the issue with a sledgehammer – WHEN A scalpel would be more appropriate” – Hamilton

“The growth of online offers both an opportunity and threat in this regard: in one respect, we have more information than ever on our players and are much better placed to intervene when we believe a player has lost control of their gambling; however, it is also very easy to drive players to unregulated operators if controls are too stringent that makes it impossible for regulated operators to offer an attractive product in a regulated environment,” continued Hamilton.

“It feels like Labour are approaching the issue with a sledgehammer when a scalpel would be more appropriate. The consolidation of operators in the UK should mean it will be easier to get industry consensus on how to tackle problem gambling in a more systematic way, without the need for such regulatory zeal and it is obvious there are big strides being made by the large operators to address this issue.”

“What should be continually assessed is a player’s ability to afford a certain spend per month” – Flynn

David Flynn, the former CEO of Operations at Jackpotjoy, is against the plans: “Bet size, prize and speed should not be assessed at all. These are all player preferences. What should be continually assessed is a player’s ability to afford a certain spend per month.

“If a player wishes to risk £100 per month on this activity, the industry should be allowed to make a simple credit check (just like if the user wanted to pay for a car loan, so much a month).”

Benedict McDonagh, managing director of Green Jade Games, joined those urging caution: “Yes, the online casino sector should be subject to regulatory restrictions and as the Remote Gambling Association states, we as a collective have the data and evidence to affect stronger control and care in this space.

“Innovation is key here, with opportunities to use technology better for the intervention in real time when data indicates self-harm is highly likely.”

Kelly Kehn, co-founder of the All-in Diversity Project, is open to restrictions but again emphasised the importance in getting the process right. “There is a definite line between recreational and addictive behaviour when it comes to gambling,” she said. “That line is relative and personal to a customer based on a number of factors such as income, risk adversity, personal situation, etc.

“Implementing restrictions and controls across the board only incentivises companies to look for loopholes. Rather, the government should be encouraging responsibility and rewarding innovation in this area.”

Also welcoming the debate is Michael Pedersen, CEO of operator Letsbet.com. “The past year, there have been more restrictions released than new game titles – that’s how it feels to us operators, anyway.

“The industry is heading towards ‘cigarette’ regulations” – Pedersen

“All in all, I think the industry is heading towards ‘cigarette’ regulations and soon we might have to use 40 per cent of our website real-estate for health warnings. Is this a good direction or not? In my view, operators should do our best to identify and protect vulnerable players. The question is more: what is the most effective way to do that? I can understand that regulators’ ‘weapon of choice’ has so far been to issue more generic rules that everyone must follow i.e. deposit or stake limits, however I believe there is a smarter way than ‘one-size-fits-all’ regulations,” said Pedersen.

“I would welcome [the measures] if integrating a data-driven tool that looks at individual players’ activity data was a compulsory part of receiving a licence. Using predictive AI technology and known problematic player patterns, the tool would be able to predict potential problem gambling behaviour quickly and flag these players for manual review by RG teams, who could then ask for proof of wealth and other documents and either block or allow player to gamble. 

“In other words, I think regulators should focus more on finding ways of implementing personalised, data-driven and smart solutions that immediately become visible for problem gamblers and which are never seen by the majority of our players.”

Helen Walton, founder and CCO at Gamevy/Glück, said: “Most blunt measures tend to have unintended consequences – the RTP controls for the MGA which work against skill and choice games (which by definition are more engaging and longer play) are a good example.

“an unacceptable loss for one is an entirely acceptable price of entertainment for another” – Walton

“Do we want people to spend a longer time for the same amount of lost money? In which case it’s not as simple as ‘length of spin’ since there is a connection between RTP, spin timing and absolute amount wagered. There’s also of course a much simpler question about affordability and what is an unacceptable loss for one person is an entirely acceptable price of entertainment for another.

“When politicians meddle in measures such as prize control, I think they can inadvertently drive more players into non regulated products – where the dangers are far greater.”

Perhaps unsurprisingly, one anonymous submission went further than most in calling on the sector to defend itself: “What categorised the debate and subsequent legislation around FOBTs was a lack of empirical evidence. As Fred Done has also pointed out, nobody appears to care about the human consequences of knee-jerk, moralistic regulation. Sadly, we are now seen by some as an anachronistic, dirty secret that needs to be be treated with the antiseptic of stringent legislation.”

“We should be wary of what is coming next in online and get ahead of the game by showing exactly what we are doing to prevent addiction and problem gambling… we run the risk of legislation being thrust upon us again that restricts the enjoyment of millions of perfectly safe and happy online customers.”

If you would like to be considered for the CasinoBeats 100 Club, please email us at 100Club@CasinoBeats.com

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The new RET Levy statutory measure will ensure that £100m in annual funding will be allocated to projects, initiatives and organisations dealing with the treatment and prevention of gambling harms. 

We are examining how the industry has reacted to such key developments with the need for clarity and further scrutiny continuing. 

Labour

Stephanie Peacock, the Labour Government’s Minister for Sport, Media, Civil Society & Youth, has released a ministerial statement on the statutory levy and the online slot stake limits.

Peacock described the current funding system for research, prevention and treatment of gambling-related harms as “no longer fit for purpose”, noting that while there has been an uplift in donations in recent years, the “quantum of funding is not the only requirement for an effective and equitable system”.

As such Peacock confirmed that DCMS will apply the new RET Levy via “secondary legislation” in place by next summer to ensure funding is “flowing to priority projects and services in the next financial year”,

She added that the statutory levy will “deliver increased and trusted investment directed where it is needed most” and “further strengthen the evidence base to inform policy, and build an effective prevention and treatment system across the country”.

“We want the public to be better aware of the risks of gambling, and for anyone suffering from gambling harms to access timely and effective support when and where they need it,” said Peacock.

As for the distribution of the levy funding – 20% to research, 30% to prevention and 50% to treatment – Peacock said it has been allocated in this way to maximise the input of expertise and authority across public bodies.

However, additional evidence collecting for prevention is still taking place. The Government views this area as a “crucial part” of its efforts to reduce gambling harm and wants to take its time to “get this right” before appointing a lead commissioning body in this area.

She added that an update will be delivered in a further response document “in the coming months”.

To govern the levy, a Gambling Levy Programme Board and a Gambling Levy Advisory Group will be established. The programme board will be the central oversight mechanism for the Government, while the advisory group will offer expert advice on funding priorities and emerging issues.

The levy system will be formally reviewed within five years, with assessments of its structure and health and adjustments taking place to ensure the Government is achieving its aims.

Regarding its policy impact, Peacock stated: “While we expect the statutory levy will have some financial impact on gambling operators, we think these are necessary and proportionate. The levy will increase the independence of spending and Government oversight regarding commissioning decisions. 

“It will play an important part in the Government’s wider aim to have a better informed and protected public when it comes to gambling-related harms. 

“This investment will also ensure the Government and the Gambling Commission have the robust evidence needed to strike the right balance between freedom and protection as new challenges arise.

“The publication today is further evidence of the Government’s continued commitment to tackling gambling-related harm. We want to ensure that people across our country can access trusted and quality information, support and treatment when it comes to gambling-related harms. 

“We believe that the introduction of the statutory levy is a crucial step in meeting these aims. I will place a copy of the response to the consultation in the libraries of both Houses.”

As for the online slot stake limits, £5 per spin for adults aged 25 and over and £2 per spin for young adults aged 18 to 24, the Minister said that these limits will go through an implementation period, meaning that following debates in Parliament, operators will have six weeks to implement the limits.

“The introduction of these stake limits is proportionate and is a key step in achieving the Government’s objective of reducing gambling-related harms. Importantly, these changes bring online slot games in line with existing restrictions on slot machines in casinos,” Peacock concluded.

“These limits are also aligned with the recommendation made by the Culture, Media and Sport Select Committee’s Second Report of Session 2023-24, ‘Gambling regulation’, published in December 2023.”

NHS

Director for Mental Health at the NHS, Claire Murdoch, expressed ‘delight’ in welcoming the gambling levy, which she noted that bereaved families and the voluntary sector have been calling for better coordination with the government when it comes to preventing gambling harm. 

“Problem gambling can completely ruin lives and the issue has skyrocketed, with NHS services treating record numbers and our latest data showing a staggering 129% increase in service referrals compared with the same period last year.

“We will continue to work with the government to do all we can to protect problem gamblers from this billion-pound industry.”

The need for action was also highlighted by Professor Henrietta Bowden-Jones, National Clinical Advisor on Gambling Harms at NHS England, who added that 2.5% of the population are experiencing harmful gambling, with many more people around them affected as a direct result of their behaviour. 

“We recognise the need for more action, which is why I am thrilled to support the Government’s new levy, which will help us address the negative impact of gambling harms on communities using treatment, prevention and research through an independent evidence-based strategy, at last.”

GambleAware

In a joint statement, Zoë Osmond, CEO of GambleAware and Professor Siân Griffiths CBE, Chair of GambleAware Trustees, also welcomed the Government’s announcement, but noted that any delay in appointing the new prevention commissioner “could adversely impact the continuity of services.”

Osmond and Griffiths said: “We welcome the Government’s plans for the new statutory levy on the gambling industry, alongside the introduction of lower online stake limits. This represents a significant step towards protecting people from gambling harm.”  

“Gambling harms affect millions of people, including children, and exacerbates inequalities across Great Britain. The introduction of the lower online stake limits for under 25s is a positive step as we know those using online casino games, including slot machines, are almost four times more likely than average to experience ‘problem gambling’ compared to other kinds of gambling.

“The levy is also a crucial step towards ensuring continued support through a statutory system and is something we have been calling for since 2017. GambleAware is committed to supporting the new system which we hope will build upon the effective work of the National Gambling Support Network and others in the third sector, as well as harnessing the strategic commissioning and campaigning expertise that already exists.” 

The joint statement continued: “We are however concerned that the delay in appointing the new prevention commissioner could adversely impact the continuity of services. 

“Clarity on this role is urgently needed to prevent system degradation as we know that prevention is at the core of tackling gambling related harms and needs to be integrated with the treatment offering. This includes impactful public health campaigns, self-help tools, and education programmes which we know are essential to addressing this serious public health issue.

“We also welcome the announcement of the cross-Government levy board and advisory group. We believe it is vital that the levy board urgently develops a national strategy to address gambling harms as part of its remit, to ensure the new RPT system is as effective as possible.”  

EPIC

Paul Buck, the CEO & Founder of EPIC Global Solutions took to Linkedin to respond to the decision revealing that “the devil will be in the detail over the next few months”.  

Buck produced five core views on DCMS’s RET levy, signifying how it will align with EPIC’s work going forward. 

He kicked off by underlining: “We should never forget that the main people that matter are those who need the services. We are already seeing organisations claim ‘victory’ in the last few hours. The only thing that matters should be that gambling harm is prevented in the first place, and then treated effectively for the small percentage (but significant number) of people who do suffer issues.”

He noted that it was the decision to split the levy at 50% treatment, 30% prevention and 20% research, with EPIC having advocated for this in previous debates. 

Furthermore, Buck cited that treatment should reflect that “gambling problems are not one size fits all”. 

He added: “The NHS is probably the right commissioner, but how they manage the incredibly important wider ecosystem and provide choices of treatment & aftercare that will be genuinely life saving or not. There are some amazing treatment options out there such as Gordon Moody the NGSN and some incredible peer support and aftercare organisations such as Betknowmore UK and EPIC Restart Foundation who all should be supported to provide choice and diversity of options.”

Lastly, he pinpointed prevention, an element he stated has still not been fully decided on at this point other than it warrants 30% of the levy. 

“As an organisation that has helped lead this area since 2013, and the largest gambling lived experience employer globally, EPIC have fed their thoughts comprehensively on this area and have felt listened to. However, we are no nearer knowing who is the commissioner (right that this isn’t NHS England) and timescales. 

“Certainty needs to be brought into this area as soon as possible so that the great organisations on the Gambling Commission approved RET list can continue their life changing work. This cannot be about anti-gambling campaigning.”

He concluded: “The public & political scrutiny on the levy will be enormous going forward and hopefully the points above will be prominent to ensure that this levy doesn’t have unintended consequences and actually do more harm than good.”

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In what was the first Labour budget for almost 15 years, it was widely anticipated that following think tank lobbying in the run up to the red briefcase reveal, the gambling industry would feel the wrath of the Labour government, which raised taxes by £40bn. 

The decision however to avoid burdening the gambling industry with significant tax rises was praised by Stephen Hodgson, Deputy Group Tax Director at Entain as ‘a sensible decision’. He also backed the decision to launch a future consultation on reform of online gambling taxes.

The Betting and Gaming Council also backed the move with CEO Grainne Hurst, emphasising that ‘any duty rise would have hit customers, prevented growth, risked jobs and bolstered the unsafe, unregulated gambling black market’.

She added: “The Government has listened to the BGC and our members, got the balance right, and rejected calls from anti-gambling prohibitionists seeking to threaten jobs and growth.

“With policy for the sector already set, our members can look to support the Government’s ambitious growth agenda, generating tax, jobs and investment across the nation while continuing to support sports like horseracing.”

She did however warn that ‘while there have been no rises in gambling duties, we will study the impact that increased employers’ National Insurance contributions will have on BGC members, particularly smaller operators like independent bookmakers and land-based leisure operators, like casinos.”

Hurst added: “BGC members contribute £6.8bn to the economy, generate £4bn in tax while supporting 109,000 jobs.

“The regulated betting and gaming industry also provides some of the country’s most popular sport with vital funding.

“According to a report by EY commissioned by the BGC, horseracing benefits to the tune of £350m annually, the English Football League and its clubs receive £40m, and snooker, darts and rugby league receiving more than £12.5m.

“BGC members are working with the Government and the Gambling Commission to deliver the proposals contained in the White Paper, many of which we called for to raise standards.”

Nonetheless, Partner at Keystone Law and Gaming, Licensing and Regulatory Lawyer, Richard Williams took to Linkedin to warn that “In light of these proposals, it appears that remote gambling duty will be merged into a single tax in due course and at a single rate. 

“On the basis that the 21% rate of remote gaming duty is unlikely to be reduced, the most likely outcome is that remote betting/pool betting duty will also be increased to 21% of GGY in the not-too-distant future. 2025 is likely to be negative for the remote gambling industry, but for now, the feared duty increases have not materialised.”

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Delivered by Chancellor Rachel Reeves, the budget was Labour’s first for almost 15 years and saw tax increases of £40bn as she sought to secure economic stability for the UK. 

Reeves emphasised that it was essential for the government to take such drastic action, taking aim at the economy and a £22bn black-hole that her party inherited from its Conservative predecessors. 

However, the plans drew significant criticism from opposition leader Rishi Sunak, who accused Labour of “fiddling the figures” and going back on manifesto promises. 

Amidst much speculation however, there was relief for UK Gambling as it continues on a path of regulatory overhaul with the news that gross gaming yield bandings will be frozen from 1 April 2025 to 30 March 2026. 

There were also plans announced for reform of remote gambling duty – aligning gambling offered over the internet, telephone, TV and radio into a single tax, in a bid to “close loopholes in the system”. 

From the perspective of the wider UK economy, one of the most notable takeaways saw Reeves accelerate the UK’s economic shift with a new structure for capital gains taxes on investments and property.

The lower rate set to increase from 10% to 18%, the higher rate from 20% to 24%, and residential property tax remaining at 18%

In the weeks leading up to the budget, The Guardian reported there was serious consideration being given to a steep rise in tax on the gaming. 

It caused Entain CEO Gavin Isaacs to apprise investors and the government regarding the impact of a potential tax increase on the wider economy. 

Yet there were no changes to tax policies on UK Gambling which will maintain its tiered threshold of 15% to 50% for land-based gaming and 21% on remote gambling duties.

It was touted by the Institute for Public Policy Research (IPPR) that as much as £3.4bn could be raised by 2030 through the increasing of remote gaming duty to 50%, more than double the 21% it currently sits at. 

Isaacs noted that such increases would “have a materially, detrimental impact on the economic contribution of wider industry”.

There were also stark warnings from the industry over crippling the sector and its potential to grow the black market. 

Betting and Gaming Council CEO Grainne Hurst stated that calls for tax rises were being fuelled by “fantasy economics”. 

She stated: “Our industry is at a crossroads as we seek to implement the measures contained in the White Paper, measures that will cost our sector over £1bn. We also can’t ignore the new levy on research, prevention and treatment for problem gambling, which will raise £100m a year from bookmakers. 

“After so many years of uncertainty, we need stability to deliver sustainable investment, not further change which threatens to undo that contribution.”

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Her comments come as trepidation within gambling elevates following proposals by two Labour-backing think tanks pitching the doubling of gambling tax, leading to warnings from the industry and analysts of the detrimental economic consequences. 

Addressing Parliament, Nandy urged the house not to believe everything that they read in the papers, emphasising a desire to “strike the right balance” when it comes to regulation. 

She added: “We’re aware of the value of this industry and the importance of it, not just to the UK economy, but to the joy that it brings to many, many people, and the employment prospects that it offers to people in every nation and region of the United Kingdom. 

“We are also very aware of the problems that can be caused by problem gambling and, as the previous government did, we’re determined to talk to the widest range of partners to ensure that we strike the right balance to protect people from the problems that can ensue, but also to support the growing industry.”

Underpinning the sector’s commitment to working with the industry, she drew attention to the positive work of Gambling Minister, Baroness Twycross, who has “met with representatives from across industry and those affected by problem gambling in order to seek the widest range of views in order to ensure that this government has a robust policy in place”.

The importance of balance was also echoed by Flutter CEO, Peter Jackson, who provided insight in a LinkedIn post following the UK Investment Summit. 

Jackson stated: “Consistency around fiscal policy is also paramount as it allows businesses like ours to invest with more confidence. With plenty of speculation around the taxation of our sector this week, it was perhaps timely that I warned of the unintended consequences of high taxes in an interview with the Financial Times published today. 

“While my comments about balance were in relation to the US, the point can also be applied to the UK operating environment and elsewhere – setting too high a tax rate reduces competition, weakens the consumer offering, and can lead to a reduction in tax revenue. This is in no one’s interest.”

Nandy went on to provide an update on the statutory levy, as she revealed that the government is committed to “reviewing all of the available evidence and listening to the experiences of members of parliament”.

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Speaking to the Financial Times, Jackson emphasised that the heightening of taxes, which have been touted by a myriad of states, will see a rise in costs and the inevitable expansion of the black market.

Jackson was also part of the UK Investment Summit, which hosted some of the key figures from business alongside  Chancellor of the Exchequer, Rachel Reeves, who is working to strengthen ties between the Labour government and business.

Off the back of the Summit, Jackson took to Linkedin to state that getting regulation and fiscal policy right are essential to achieving business and economic success. He agreed with former Google CEO Eric Schmidt that ‘UK regulation must be streamlined and implemented at a greater pace under Labour’. 

Jackson remains supportive of the implementation of the Gambling Act Review, however, sharing that the regulation ‘requires ongoing collaboration on a number of key areas, but the fact that it was complicated by three years of delay caused great uncertainty for the UK’s sports betting and gaming industry’.

The CEO added: “Consistency around fiscal policy is also paramount as it allows businesses like ours to invest with more confidence. With plenty of speculation around the taxation of our sector this week, it was perhaps timely that I warned of the unintended consequences of high taxes in an interview with the Financial Times published today. 

“While my comments about balance were in relation to the US, the point can also be applied to the UK operating environment and elsewhere – setting too high a tax rate reduces competition, weakens the consumer offering, and can lead to a reduction in tax revenue. This is in no one’s interest.

“At Flutter, we stand ready to play our part through our brilliant businesses, such as Sky Betting & Gaming in Leeds and tombola in Sunderland. As a leader in the space, we can help drive the UK’s digital economy and lay the foundations for long-term success, aligning with the Chancellor’s quest for growth.”

The comments from the Flutter CEO come after bleak predictions from analysts over the potential impact of the touted tax rises in the UK market. 

Specifically, JPMorgan analysts Estelle Weingrod and Karan Puri both discredited the effectiveness of the plans. A tax hike may well lead to an “exodus of operators” from the subsequently “unattractive” UK market, they assert.They also warned of the new framework driving players to the black market, “defeating the purpose of having a regulated market in the first place”.

They added that it is “also worth noting that generally, more stringent regulation typically offers the opportunity for scale operators to consolidate the industry further as small/sub-scale operators struggle to mitigate the adverse impact as effectively, eventually exiting the market”.

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The recent tax proposals come from two think tanks, the Institute for Public Policy Research (IPPR) and the Social Market Foundation, both backed by prevalent Labour donor Dereck Webb. 

Nonetheless, the Financial Times reported that according to its government sources there are currently no plans to hike tax on the gambling industry. 

However, due to consistent reminders from the Labour Party over a £22bn black hole in the country’s finances, it feels like an avenue the government could explore when the Rachel Reeves’ first budget comes around on October 30th.  

JPMorgan analysts Estelle Weingrod and Karan Puri both shot down the effectiveness of the plans, suggesting they would lead to an “exodus of operators” from the subsequently “unattractive” UK market. 

They also warned of the new framework driving players to the black market, “defeating the purpose of having a regulated market in the first place”.

The JPMorgan analysis also emphasised the pivotal nature of timing these potential new regulations, as the UK gambling industry moves into a key period for implementing of white paper recommendations. 

They added that it is “also worth noting that generally, more stringent regulation typically offers the opportunity for scale operators to consolidate the industry further as small/sub-scale operators struggle to mitigate the adverse impact as effectively, eventually exiting the market”.

The IPPR proposals stated that as much as £2.9bn could be raised now, a figure growing to £3.4bn by 2030 through the increasing of remote gaming duty to 50%.

Barclays’ Brandt Montour also criticised the potential doubling of the tax rate for operators, issuing a stark warning to its impact on smaller operators.

He said: “While the article appears credible, the proposed changes (a doubling of most tax rates within one of the proposals) seem egregious to us, and will likely raise realistic concerns over anti-competitive impacts (most small operators would likely close-down) as well as give a substantial boost to the black market.”

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A Guardian report revealed that Rachel Reeves, Chancellor of the Exchequer, is seriously considering the proposals of two think tanks to raise gambling taxes as the search for extra funding continues for the embattled government 

Underlining just how significant the hike would be on the sector, Hurst said: “The current speculation around taxes is being driven by anti-gambling campaigners, based on fantasy economics, and are simply not credible.

“I want to be very clear with the government, any further tax rises now will not only slam the brakes on growth for our sector, but it will threaten jobs and completely derail horse racing.

“Our industry is at a crossroads as we seek to implement the measures contained in the White Paper, measures that will cost our sector over £1bn. We also can’t ignore the new levy on research, prevention and treatment for problem gambling, which will raise £100m a year from bookmakers. 

“After so many years of uncertainty, we need stability to deliver sustainable investment, not further change which threatens to undo that contribution.”

Online casino games are thought to be at the centre of potential tax hikes, as part of a campaign pushed by multimillionaire Labour donor, Derek Webb. 

The Institute for Public Policy Research (IPPR), which put forward the proposals, said as much as £2.9bn could be raised now, a figure growing to  £3.4bn by 2030 through an increase in remote gaming duty to 50%, more than double the 21% it currently sits at. 

Additionally, another think tank backed by Webb, the Social Market Foundation, is reportedly looking at a proposal that would have a smaller impact on the industry, but still strengthen government finances.

However, Hurst also issued a stark warning on the black market: “Any new taxes now risks giving a leg-up to the lurking menace of the black market, which is hoovering up disaffected customers with eye-catching offers but none of the protections that are in place in the regulated market.

“Customers have been hit hard for years, with increasing pressure on the cash people have available to spend on the hobbies they enjoy, once bills and taxes are paid. Now is not the time to ramp up that pressure. 

“Betting and gaming remains a hugely popular pastime in this country, with around 22.5 million people having a flutter each month, and it is enjoyed safely by the overwhelming majority. Our members are a Great British export and genuine global leaders, delivering enormous economic goods in city centres, on high streets and in the growing online sector.

“We want to partner with the government to see the right, proportionate regulations, and a stable tax regime, which doesn’t hit customers, doesn’t raise the attraction of illegal operators and doesn’t derail the horseracing industry, but instead delivers on the government’s growth agenda.”

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The Guardian reports that one of the ideas being given serious consideration by the Treasury are major changes to the UK’s complex array of gambling taxes. Unlike many of the tax ideas that have been floated by government sources in recent weeks, this one has received little pushback from Whitehall officials, according to the newspaper. 

Plans for the increase reportedly stem from two influential think tanks, which according to the Guardian are also backed by one of the party’s most significant donors. 

A central theme of the Labour government’s initial 100 days in charge has been their commitment to plugging a £22bn gap that they claimed was left by the previous tenure. 

Online casino games are thought to be at the centre of potential tax hikes, as part of a campaign pushed by multimillionaire Labour donor, Derek Webb. 

Webb, who has elevated his stature as a Labour donor in recent years, was also key for the campaign to restrict maximum stakes on Fixed Odds Betting Terminals, a regulation that had a major impact on the retail gaming sector. 

The Institute for Public Policy Research (IPPR), which put forward the proposals, said as much as £2.9bn could be raised now, a figure growing to  £3.4bn by 2030 through the increasing of remote gaming duty to 50%, more than double the 21% it currently sits at. 

Additionally, another think tank backed by Webb, the Social Market Foundation, is reportedly looking at a proposal that would have a smaller impact on the industry, but still strengthen government finances. 

Despite it being seen as a diluted increase in taxes, the plans would still be likely to double taxes paid by gambling companies – another move that would likely lead to backlash from the sector. 

UK operators will anxiously await the Labour government’s first budget on 30 October, after a Guardian report of the potential plans for a tax increase caused widespread declines across operator shareholder prices on Monday morning. 

It comes as the government underlines ambitions to boost the UK’s status as a hub for business – hosting the International Investment Summit in London amidst a pledge from the Prime Minister to remove red tape and regulatory hold ups when it comes to business. 

According to the report by the Guardian, plans are far from cemented. However, they are being seriously explored as the government hopes to raise funds to navigate a tricky economic period. 

The Betting and Gaming Council has previously warned of the impact a significant increase on taxes could have on the sector and player safety, calling on the government to take a balanced response when it comes to regulation. 

Just last month, the BGC commissioned a report published by consulting firm Frontier Economics titled ‘The size and economic costs of black market gambling in Great Britain’. 

The BGC detailed that £2.7bn is being wagered online on illegal sites, while up to a further £1.6bn may be being staked in person at illegal gambling dens.

The £2.7bn estimate for online gambling is divided as follows: £262m is attributed to players who exclusively use black market online operators, £433m comes from those who only gamble via social media or messaging platforms such as WhatsApp, while the remaining £2bn is contributed by players who split their gambling activities between black market and UK-regulated operators.

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During the King’s Speech on Wednesday, to the surprise of many it was revealed that the government was planning to introduce the Digital Information and Smart Data Bill, focusing on legislation for digital identification.

Roger Redfearn-Tyrzyk, Vice President Global Gaming at IDnow told CasinoBeats that their introduction could “change the way users onboard to gambling operators in the UK”. 

He continued: “In general, prospective players can be verified with the help of database checks (i.e. credit reference agency data), document checks and/or biometric checks to safeguard players and operators against suspicious or fraudulent activity. IDnow offers all these methods within its portfolio.

“In the UK gambling sector, player onboarding via database checks is still the most common verification method today. If digital ID cards were introduced, this could become a new, possibly even preferred, verification method, depending on how the regulator would choose to deal with this new verification option.”

“Additionally, it will give the player an overview of exactly what data is being checked, so that they are in full control of it. At this moment in time, it may not be clear to the player what data is being checked or verified, unless they consult the small print of the terms and conditions. With a digital identity, the player would truly own their data on their device.”

Digital ID is not a new proposal in the British market, having previously been touted under the last Labour government by Tony Blair in 2005. 

The former Labour leader also lobbied for them again following the party’s return to power after 14 years in the shadows, with Blair citing its potential to tackle illegal immigration in the country.

Introduction of digital ID could have widespread consequences on a plethora of industries, though including the gambling space where KYC is nothing short of crucial. They will mean the implementation of Smart Data Schemes, which will facilitate the secure sharing of customer data with authorised third-party providers.

Redfearn-Tyrzyk pinpointed Singapore as a market that has had success in terms of digital ID, as he emphasised that they can perform multiple functions. 

He said “In Singapore, the digital ID replaces 33 other IDs and is used to prove identity for public and private transactions, including applying for social services, entering government clinics and banking.

“There are hundreds of public and private sector use cases where digital identities could optimise the user experience in a KYC process. For example, account opening in banking, compliance checks in crypto, age verification in mobility, streamlined check-in processes in travel or contract signing in telecommunications.”

Mapping out potential challenges to their implementation, he revealed: “In 2021, around one in four people in the UK did not have a traditional form of ID. While technology offers a fast, low-cost way for countries to provide identification to adults, any new system or product takes time to build a new user base. 

“In the past, many digital ID programmes around the world have struggled with adoption rates due to a lack of public-private partnerships and the associated difficulties in integrating with different government agency identification systems.

“In the UK specifically, because ID cards – and digital ID cards in particular – are a relatively new concept, there is a general lack of awareness of their benefits and therefore a lack of confidence in how they work. This would likely hinder the initial uptake. 

“Additionally, consumers, both in the onboarding process and in daily use, have become accustomed to a certain customer experience when using digital solutions. Unless a UK digital identity solution provides a similarly seamless and smooth experience, users may not migrate to the new solution.”

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