Gambling Regulation Shake-Up: Betting Industry Braces for Potential Upheaval

The upcoming Labour conference in the UK is set to be a pivotal moment for the gambling industry, as the new government's plans for regulating the sector come into focus. With the minister for gambling, Baroness Twycross, scheduled to speak at a fringe event, the industry is bracing for potential changes that could have significant implications for the racing industry as well.

Betting Industry Faces Potential Reckoning as Gambling Harm Takes Center Stage

Rethinking the Gambling Landscape: Potential Tax Hikes on Online Slots

The gambling industry's reliance on gaming products, particularly online slots, has come under increasing scrutiny in recent years. As the number of active players on online slots has more than doubled in the past five years, reaching nearly 4.5 million, or around one in ten of the adult population, the potential for harm has become increasingly apparent.The Social Market Foundation (SMF), a cross-party think-tank, has been a vocal critic of the industry's focus on gaming products. In a report set to be published before the upcoming budget, the SMF will argue that the Remote Gaming Duty (RGD), the tax levied on gaming profits, should be increased to at least 42% – double the current rate of 21%.This proposed tax hike could have significant implications for the gambling industry, potentially shifting the balance away from gaming products and towards traditional sports betting. As the veteran campaigner Brian Chappell, the founder of Justice4Punters, has pointed out, the rise of online slots has been "extraordinary," with gaming products now accounting for 80% of the industry's gross gambling yield.

Untying Racing from the Gaming Sector: A Potential Boon for the Sport

The close ties between the gambling industry and the racing sector have long been a source of concern for some. The multinational gambling operators, having acquired the traditional bookmakers, have been actively blurring the lines between betting and gaming, often to the detriment of the racing industry.However, the SMF's proposal to focus on gaming products, while leaving the betting sector relatively untouched, could be a positive development for racing. As Dr. James Noyes, a senior fellow of the SMF, has stated, "Racing should be untied … from other sectors when it comes to the debate over regulation and taxation. Online slots should be limited but racing should be supported."This sentiment echoes the concerns of many in the racing industry, who have watched as the gambling industry's focus has shifted away from traditional sports betting and towards more lucrative gaming products. By untying racing from the gaming sector, the industry could potentially see a resurgence in betting activity, which would be a boon for the sport's long-term prospects.

Industry Pushback: The Betting and Gaming Council's Potential Response

The Betting and Gaming Council (BGC), the industry's main lobby group, is likely to fiercely oppose the SMF's proposals. The organization has been keen to blur the boundaries between betting and gaming, and it seems safe to predict that its response to the SMF's proposal will be "volcanic."The BGC's attempt to ride two horses at once – betting and gaming – may finally be running out of road, as the industry's fortunes become increasingly tied to the fate of the gaming sector. With the SMF and other influential critics of online slots pushing for a clear separation between the two, the racing industry may find itself in a position to actively lend its support to the cause.This could be a pivotal moment for the gambling industry, as the new government's plans for regulation come into focus. The potential tax hike on online slots, coupled with the push to untie racing from the gaming sector, could signal a significant shift in the industry's landscape, with far-reaching implications for the future of both gambling and the racing industry.