Former minister warns affordability checks could drive punters to black market

Placing too many burdens on people who want to gamble safely risks driving them towards the black market, former gambling minister John Whittingdale has warned.

Whittingdale, also formerly the culture secretary, told the annual meeting of the Betting and Gaming Council (BGC) in London on Thursday that some proposals for affordability checks were "extraordinary" and that he believed there was no evidence that gambling advertising caused increased problem gambling.

He was speaking with the government in the midst of a review of gambling legislation, with a white paper expected in the spring.

According to a report last year by PwC, the number of people already using black market gambling websites has doubled to around 460,000.

John Whittingdale: 'The danger of driving people towards the black market is a real one'Credit: Scott Heavey (Getty Images)

Whittingdale said: "If you make it too hard for people, or put too many burdens on people who want to gamble in a safe way and who can afford to do so, then they will resent that and there is a risk they will look elsewhere.

"Therefore the danger of driving people towards the black market is a real one and needs to be borne in mind.

"There are some in the campaign groups who dismiss it, who say the black market is tiny, that it is vastly exaggerated by the industry as a sort of bogeyman they use to try and argue against controls. I don't believe that. I believe the black market is real."

A poll published by the BGC this week found that fewer than one in five punters would be happy to accept checks on their finances in order to be able to gamble.

Ministers warned YouGov poll is 'wake-up call' over potential gambling measures

Whittingdale said there had been a wide range of proposals as to how far affordability checks should extend and how intrusive they should become.

He added: "I have to say I'm concerned at those who have suggested that, for instance, every person wishing to place a bet should first have to register and then would be assessed as to whether or not they could afford to do so by some government body.

"This is an extraordinary suggestion. I don't believe for a second the government will do it, but it's an indication of the extent to which some people are seeking to impose regulation which would destroy your industry."

Gambling advertising and sponsorship could come under threatCredit: Mark Runnacles

Whittingdale said gambling advertising and sponsorship were areas "where there is a lot of pressure for further restriction", including calls for outright bans.

He added: "I was very much aware that firstly the evidence that advertising leads to an increase in problem gambling is pretty much non-existent. Some have argued that it does but certainly the assessments I have seen showed no linkage."

The Conservative MP for Maldon added it was right that gambling advertising was subject to some requirements but that a ban would have a "huge impact" on sport and broadcasters.

When Chris Philp succeeded Whittingdale as gambling minister in September it was suggested he would be tougher on the industry. Whittingdale claimed that underestimated himself and misjudged Philp.

He added: "I think he will proceed on the basis of evidence and will wish to preserve the industry as one which plays a major part in our leisure economy, creates jobs and benefits the Treasury."

Read more:

'The black market sees vulnerability as commercially lucrative (Members' Club)

Revealed: how black market betting sites are preying on gambling addicts (Members' Club)

Affordability checks could see some gamblers turn to black market operators

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