Report claims government is working on affordability measures that are 'easy' for customers

Speculation about the contents of the government's gambling review white paper have mounted with reports claiming the government's proposals included the introduction of affordability measures akin to more simple credit checks.

Renewed reports that gambling firms will be subject to a new levy to fund research, education and treatment (RET) services were met with guarded approval on Monday by industry body the Betting and Gaming Council (BGC), which said such a system would need to recognise the higher costs faced by bricks-and-mortar operations.

The government launched its review into gambling regulation in December 2020 but the resulting white paper has been the subject of continued delays. However, it appears increasingly likely it will finally appear after parliament returns from the Easter recess on April 17.

In January the then gambling minister Paul Scully said the government was looking at what he described as "financial risk checks" on punters, which would be "frictionless".

The Sunday Times claimed the government would introduce two-stage affordability checks, the first stage being for customers spending "moderate" sums and involving background checks. The newspaper said those spending greater sums would be subject to enhanced checks.

It quoted a Whitehall source as saying: "We are working to ensure these checks are easy for customers and operators, with no burdensome requirements like sharing payslips or bank statements."

It was also reported the measures would require the extension of a 'single customer view' system to prevent vulnerable customers simply moving to another operator.

Michael Dugher: bricks-and-mortar operations face higher costs

The new statutory levy on operators would replace the voluntary system currently in operation, and it was claimed it would raise £150 million a year. The BGC claimed a blanket one per cent mandatory levy on land-based operators would be the equivalent of between a ten per cent and 15 per cent hit on post-tax profits due to their higher fixed costs.

BGC chief executive Michael Dugher said: "I have said for some time that I am relaxed about a so-called statutory levy given that the money is already on the table from BGC members, it is already allocated independently of the industry and given that it was the BGC who proposed to government last year that contributions should be mandatory.

"But we want to see continued sustainable funding for RET provided it recognises the fact land-based operators are under greater cost pressures, so there has to be appropriate mitigation, and that funds continue to be distributed effectively and genuinely independently."

The creation of a gambling ombudsman to improve customer redress and a cap on the stakes for online slots of between £2 and £5 are also expected to be included in the white paper.

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