Thank you for contacting me about online gambling.
Each month, more than 20 million people across the country safely place a bet, but for a minority of people it can also become a serious problem. In the new digital landscape, regulation must strike the correct balance between protecting consumer freedoms and protecting the vulnerable from harm.
While the Government has attempted to exclude racing from new taxes, it is still likely to suffer. Horse racing accounts for 29 per cent of online betting gross gambling yield. A tax rise on the industry, even with the exemption for racing, will inevitably reduce the betting industry’s contribution to racing as costs are cut across the sector including on marketing, sponsorship and promotions. In fact, sponsors have already withdrawn, such as Coral withdrawing from sponsoring Cheltenham. This not only risks the future of racecourses and horse racing, but also jeopardises the livelihoods of those that depend on them.
I share your concern about the rushed introduction of financial risk assessments, previously referred to as affordability checks. These were introduced by the previous Government as a time-limited pilot. However, it is now becoming clear that these checks are not frictionless, are not working and have serious potential to force gamblers onto the black market. While the black market, has no affordability checks, there are no safer gambling tools, no self-exclusion, no deposit limits — there are no protections at all. The Government needs to consider the impact of this ongoing policy to ensure vulnerable gambles do not simply turn to the black market where they are at the mercy of unregulated operators.
The gambling industry adds £6.8 billion to the UK economy, pays around £4 billion in tax, and supports over 109,000 jobs across the country. This Government's decision to increase taxes risks job losses, damages the economy, and will drive billions into the gambling black market.
Thank you again for taking the time to contact me.
