Gambling white paper: Companies must 'step up checks' on vulnerable customers

For some of those worst affected by gambling the government's announcement seems short in detail and long in timescale, as ITV News Consumer Editor Chris Choi reports

Gambling companies will be made to "step up their checks" on vulnerable customers in a bid to protect people who can't afford even small losses, the government has announced.

Culture Secretary Lucy Frazer outlined the details of a long-awaited White Paper, which is the most comprehensive review of the industry in 15 years.

It will ensure gambling laws in the UK are "fit for the smartphone era", according to Downing Street, while some Conservative MPs think the reforms need to be introduced more quickly.

As part of the proposals announced on Thursday, companies will be forced to increase protections for vulnerable customers, and there will be rules to lower maximum bets.

Ms Fraser also announced the creation of a non-statutory ombudsman to give customers a single point of contact, to redress the "power imbalance" between punters and gambling companies when things go wrong.

Introducing the paper in the House of Commons on Thursday, Ms Frazer said gambling has been "transformed" with the increased use of the smartphone, with "temptation" now everywhere in society.

In a single professional football match, fans are exposed to gambling logos roughly 700 times, according to a 2021 documentary made by Channel 4.

This number was reported to be higher for bigger matches.

Ms Frazer told MPs: "When gambling becomes addiction, it can wreck lives. Shattered families, lost jobs, foreclosed homes, jail time, suicide.

"These are all the most extreme scenarios. But it is important we acknowledge that for some families those worst fears for their loved ones have materialised."

'When gambling becomes addiction, it can wreck lives', says Culture Secretary Lucy Frazer

Among the plans to tackle gambling addiction are maximum stakes for online slot machines of between £2 and £15 for all customers, and a new statutory levy which will see gambling companies required to fund more research, education and treatment.

Currently, the size of the levy for gambling companies is not mandated, and not all companies pay a fair share - some have paid as little as £1.

The proposals are subject to consultation, something Conservative MP Sir Iain Duncan Smith, who is the vice-chair of the All-Party Parliamentary Group on Gambling-Related Harm, doesn't agree with.

Sir Duncan Smith, also the former Tory leader, suggested the government should introduce the reforms more quickly and not put the plans out to consultation.

"I don't think we need the consultation. We've spent four years getting to the point, if we don't know what we're talking about now then I think we're in the wrong business," he told ITV News.

The NHS mental health director, Claire Murdoch, has welcomed the white paper after branding gambling addiction "a cruel disease".

Ms Murdoch said: "The NHS has long called for action to tackle gambling addiction which destroys people's lives - I have personally heard of countless examples of people bereaved by gambling addiction or who have contemplated suicide - so I am delighted that the Government has committed to tackling this cruel disease.

"While the NHS is treating record numbers, with almost 50% more referrals last year compared to the previous year, it should not be left to the health service to pick up the pieces left behind by a billion-pound industry profiting on vulnerable people, so I fully endorse the statutory levy set out in today's white paper and look forward to reading the proposals in detail."

'I don't think we need the consultation', urges MP Sir Iain Duncan Smith

Gambling companies have also welcomed the long-awaited government shake-up of the industry, but admitted the "devil will be in the detail".

Jette Nygaard-Andersen, chief executive officer of Ladbrokes owner Entain, said: "The UK Gambling Act Review is an important step towards having a robust regulatory framework that is fit for the digital age and creates a level playing field for all operators.

"We welcome the clarity that it will bring to the industry and customers."

Ms Nygaard-Andersen said the policies included a number of measures which had been "already implemented" by the FTSE 100 company.

Meanwhile, Peter Jackson, chief executive of Paddy Power parent firm Flutter, added: "We welcome the publication of the White Paper, which marks a significant moment for the UK gambling sector.

"We will continue to constructively engage with the Government and Gambling Commission as part of any subsequent industry consultation processes, with a focus on providing support to the minority at risk of gambling harm without interfering disproportionately with the enjoyment of the vast majority."

The review of gambling laws was initiated in 2020 to make sure regulation is fit for the digital age, following a number of high-profile cases where customers have suffered substantial losses and, in some cases, taken their lives.

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