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31Oct

Gambling Commission Annual Report 2023-2024

31st October 2024 Ting Fung Harris Hagan, Responsible Gambling, Uncategorised 186

The Gambling Commission’s latest Annual report and accounts (the “Annual Report”) for the reporting period 1 April 2023 to 31 March 2024 (the “Period”) was published on 17 October 2024. Key focuses during the Period include the implementation of the Gambling Act Review and the Gambling Commission’s award of the Fourth National Lottery Licence, which led to the first ever change of licensee in the history of the National Lottery.

Performance report

The Annual Report contains a performance report in which the Gambling Commission provides a detailed overview of its delivery during the Period against the five strategic objectives from its 2021-2024 Corporate Strategy. We have summarised some key information from this performance report below, along with other highlights from the Annual Report.

  1. Protecting children and vulnerable people from being harmed or exploited by gambling

Following the publication of the Gambling Act Review White Paper, there were a number of consultations in the Period in relation to proposed changes to the Licence Conditions and Codes of Practice (“LCCP”) and the Remote gambling and software technical standards. Proposals included: (a) improving consumer choice on direct marketing; (b) strengthening age verification on premises; and (c) reviewing socially responsible incentives to ensure incentives such as free bets and bonuses do not encourage excessive or harmful gambling. The issue that proved most controversial related to financial risk checks, with the Gambling Commission reiterating in the Annual Report that this a complex area as it aims to “protect vulnerable people from harm whilst respecting the freedom of others to gamble freely”. Therefore “ committed to a step-by-step approach to implementation and a pilot on the enhanced financial risk assessments to test the process and impacts on consumers.”

The Gambling Commission sets out the several changes it made to the LCCP during the Period including by: (a) setting out its approach to ‘vulnerability’; (b) extending the requirement to participate in GAMSTOP to all gambling licensees that make or accept bets by telephone and email; and (c) adding an additional reportable event that requires all gambling licensees to inform it when they become aware that a person who has gambled with them has died by suicide.

Gambling Commission publications in the Period aimed at improving the breadth and quality of data included:

  • The Gambling Survey for Great Britain: Statistics on gambling participation – Annual report Year 1 (2023): Official statistics (See Other highlights below for further detail);
  • Evidence Gaps and Priorities 2023-2026 (July 2023); and
  • Young People and Gambling Report (November 2023).

2.    A fairer market and more informed consumers

The Gambling Commission points out that it has reviewed its approach to tackling non–compliant terms and practices, including the processing of customer withdrawals. Delays to the withdrawal of funds from accounts, (more than 2,400 complaints during 2023) remained the primary consumer complaint during the Period. The Gambling Commission has previously worked with the Competition and Markets Authority and updated the LCCP to clarify licensees’ responsibilities, including the requirement that licensees do not seek to verify information at the point of withdrawal that they had the opportunity to do earlier in the process. In the Annual Report the Gambling Commission reiterates that “Where such practices are identified, we will continue to hold licensees to account.” Please see our blog Account withdrawals: The mask operators cannot hide behind for more information.

In addition to initial outputs from the Consumer Voice research programme, the Gambling Commission has completed 58 website reviews, with 51 websites found to be either complaint or to have minor issues relating to things such as promotional bonus offer terms. The remaining websites reviewed raised more significant issues requiring further investigation and/or escalation.

Keeping crime out of gambling

The Gambling Commission explains that it has continued to work with partners to undertake intelligence-led disruption and enforcement initiatives to contribute to a reduction in crime associated with gambling, stating that “our collection, analysis and sharing of intelligence with other regulators and agencies remains a cornerstone of our work.” It has held discussions with search engine providers to discuss referrals and further action on search results and talks are ongoing to improve its ability to disrupt unlicensed operators.

Key figures in the Period in this area include:

  • 384 cease and desist and disruption notices were issued to unlicensed operators resulting in 136 website restrictions through suspension or IP blocking; and
  • 122 compliance assessments of online and land-based operators, 77 website reviews and 182 security audits were conducted.

In addition, from April 2023, the Gambling Commission also assumed responsibility for collecting the Economic Crime Levy from licensed casino operators.

Optimising returns to good causes from the National Lottery

Returns to good causes which were derived from a combination of the Third and Fourth Licence period totalled £1.7 billion at the end of the financial year. The Period saw the transition of the National Lottery licence from Camelot to Allwyn, who were formally granted the Fourth Licence to operate the National Lottery on 1 February 2024. Subject to the resolution of the legal challenges this licence will run for 10 years.

Key changes to the Fourth Licence include:

  • A new ‘Incentive Mechanism’ so that all National Lottery products will now make returns to good causes at the same level (meaning Allwyn will only see profits rise if returns to good causes increase); and
  • A move to an outcomes-based approach that will give Allwyn greater responsibility to fulfil its obligations, while retaining the Gambling Commission’s powers to intervene if they fail to do so.

Improving gambling regulation

The Gambling Commission recognises the need for an upgrade to existing systems in order to “serve the needs of the business more efficiently” and expects this to be completed during 2024 to 2025. Its requirement that licensees send returns quarterly is intended to ensure the information it receives is relevant and timely, and enables it to identify issues arising as early as possible.

Further information on the Gambling Commission’s plans for gambling regulation are set out in its Corporate Strategy 2024 to 2027 published on 8 April 2024, with commitments to be detailed in annual business plans and outcomes published in future annual reports.

Other highlights

Gambling Commission research

In respect of other datasets referred to in the Annual Report, the Gambling Commission’s Cost of Living (2023) research  found that:

“1 in 5 gamblers who reported changes in their gambling behaviour (either increased or decreased) said this was entirely due to increased cost of living. In addition, 8.5 per cent of gamblers reported using gambling to supplement their income on a regular basis.”

The Gambling Commission therefore continues to stress the need for operator vigilance during these times of heightened consumer vulnerability.

Gambling Survey for Great Britain

In respect of the Gambling Survey for Great Britain (“GSGB”), which focuses on the types of gambling activities that people take part in and the reasons why people gamble, the Annual Report emphasises that because the GSGB is a new survey, it does mean that it cannot compare GSGB data to data from previous alternative surveys and that, with time, the data collected will grow and enable it to look at trends and comparisons across this data source.

Enforcement?

The Annual Report notes that in 2023 – 2024, enforcement action led to the suspension of one operating licence and £13.4 million in fines or regulatory settlements: a reduction on the previous year. The Gambling Commission acknowledges that it has seen a significant increase in compliance from larger operators at the point of their assessment, with the rate of operators achieving compliant first-time outcomes doubling and the rate for the largest operators almost trebling in the past two years.

In terms of other operational activities, 133 operator licenses were processed and 122 compliance assessments were conducted for online and land-based operators in the Period.

Industry figures and statistics

Gross Gambling Yield (“GGY”) for the British gambling industry in 2022-2023 was £15.1 billion (a 6.8% increase when compared to April 2021 – March 2022) and GGY for the British remote and/or online sector was £6.5 billion in 2022 – 2023 (a 2.8% increase when compared to April 2021 to March 2022).

For the Period, the Gambling Commission’s fee income comprised:

  • £1.21 million from operator applications (down from £2.05 million in 2022-2023)
  • £0.75 million from personal licence fees (down from £0.76 million in 2022-2023)
  • £23.86 million from operator annual licence fees (up from £22.89 million in 2022-2023)
  • £0.36 million from miscellaneous sources (down from £0.39 million in 2022-2023)

In terms of expenditure, gambling regulation costs in the Period totalled £21.07 million (up from £19.33 million in 2022-2023), and National Lottery functions accounted for £19.34 million (down from £21.58 million in 2022-2023), of which £17.03 million was spent on the National Lottery Fourth Licence competition. Overall, the Gambling Commission’s table of year-on-year expenditure for gambling and National Lottery regulation shows an increase in operational costs since 2019-2020.

What’s next?

In the Foreword of the Annual Report, Gambling Commission Chair, Marcus Boyle and its Chief Executive Officer, Andrew Rhodes, both agree that:

“The next few years provide a once-in-a-generation opportunity to make gambling safer, fairer and crime free.”

The Gambling Commission’s next steps are set out in its Corporate Strategy 2024 to 2027. For further details on the Corporate Strategy 2024 to 2027, see the previous blog from Gemma Boore.

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18Oct

Gemma Boore to moderate direct marketing roundtable at EGR London Summit during Safer Gambling Week

18th October 2024 Harris Hagan Harris Hagan, Marketing, Responsible Gambling 219

Senior Associate, Gemma Boore will be co-hosting a roundtable discussion at the EGR London Summit 2024, which takes place next week on 23 October 2024 at etc.venues Chancery Lane.

Gemma, alongside co-host David Murphy, Chief Marketing Officer at QiH Group, will moderate the roundtable, Direct marketing practice: striking the right balance for brand awareness and customer choice, during which attendees will share their perspectives on gambling marketing and advertising.

Gemma will share her legal perspective on the unique challenges faced by the gambling industry when marketing their brands. For example, the Gambling Commission’s proposals regarding direct marketing and cross-selling, which Gemma previously discussed in her blog: White Paper Series: Direct marketing and cross-selling in the crossfire. Further information and discussion regarding the Gambling Commission’s implementation of these proposals (which will come into force on 1 May 2025) can be found in our subsequent blog: Gambling Commission publishes Summer 2023 Consultation Response and Betting & Gaming Council announces New Industry Voluntary Code.

The EGR London Summit 2024 is an exclusive industry event and includes a full agenda of discussions throughout the day focussing on safer gambling strategies and broader regulatory updates.

For more information and to apply to attend, visit the EGR London Summit website.

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17Oct

Harris Hagan retains top tier rankings in 2025 Chambers and Partners and The Legal 500

17th October 2024 Harris Hagan Harris Hagan 158

We are delighted to announce that Harris Hagan has again been ranked in the top tier in both Chambers and Partners and The Legal 500 for 2025.

Chambers and Partners

Harris Hagan has been ranked in Band 1 for Gaming for the 21st consecutive year.

“The team is first-rate and has extensive experience in the sector. We have full confidence in the ability of the Harris Hagan team to provide us with first-class service.”

Partners John Hagan and Bahar Alaeddini continue to be recognised in Band 1 and Partner David Whyte has been recognised in Band 3. Consultant Hilary Stewart-Jones is ranked as a Senior Statesperson and Senior Associate Gemma Boore together with Associate Francesca Burnett-Hall, continue to be recognised as Associates to Watch.

Together our lawyers constitute 6 of the 25 gaming lawyers recognised in the directory, befitting our status as a leading specialist gambling law firm. We were also invited by Chambers to write the introduction to the practice area.

We received many positive testimonials, including:

“Every lawyer I have dealt with at the firm is excellent; they know exactly what is going on in the market. This means they are able to provide thorough but also commercial and pragmatic advice.”

“John Hagan is first-class. He is one of the most experienced and impressive gaming lawyers.”

“Bahar has deep relationships in the industry and an ability to solve complex gaming issues in a client-friendly way. She is second to none in that regard.”

“David is extremely knowledgeable of the gambling industry. He is able to provide very thorough advice, whilst also being very direct, pragmatic and to the point.”

“Hilary’s experience of the market is invaluable.”

“Gemma has done excellent work and we would welcome any opportunity to continue working with Gemma in the future.”

“Francesca is very capable, always available and very prompt with every task.”

The Legal 500

Harris Hagan continues to be ranked as Tier 1 for Gaming and Betting in the UK.

 “Harris Hagan is, by some margin, the leading specialist firm in the U.K. gaming industry. Their team has unrivalled expertise in gaming regulation and licensing.”

Managing Partner John Hagan, alongside Consultant Hilary Stewart-Jones continue to be listed in The Legal 500’s Hall of Fame, Partner Bahar Alaeddini is listed as a Leading Partner, and Partner David Whyte is listed as a Next Generation Partner. Senior Associate Jessica Wilson is also recognised as a Leading Associate.

We received many positive testimonials, including:

“They have seen it all, and are able to bring their deep experience and deep industry knowledge and connection to bear to provide high quality, pragmatic advice.”

“Their ability to understand our industry in-depth makes them stand out from the rest. They are so invested in understanding all aspects that it enhances the knowledge and guidance they provide.”

“John Hagan is the most prominent U.K. gaming lawyer and is a widely known and respected figure in our industry.”

“‘Friendly, approachable, advice and guidance is not always done in legal jargon, they have a great way of describing a situation in layman’s terms. David Whyte covers all these areas with excellence.”

We would like to thank all of our clients to whom we are incredibly grateful for your continuing instructions and for helping us achieve these impressive rankings.

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08Oct

Reminder: Changes to specified management offices come into force on 29 November 2024

8th October 2024 Chris Biggs Harris Hagan, Uncategorised 157

Licensees are reminded that on 29 November 2024, the Gambling Commission will update licence condition (“LC”) 1.2.1 of the Licence Conditions and Codes of Practice (“LCCP”) to clarify and extend the roles captured as ‘specified management offices’ (“SMOs”) under this requirement. Licensees impacted by this change should take action now to ensure relevant individuals are granted personal management licences (“PMLs”) before the new requirements come into effect.

Background

Earlier this year, the Gambling Commission published its response to the Summer 2023 consultation (“Consultation Response”) in which it confirmed that it would proceed with changes to the LCCP to clarify and extend the roles captured as SMOs, which from 29 November 2024 will include:

  1. Chief Executive Officers, Managing Directors or equivalent positions;
  2. Chairs of Boards – unless that person only holds the position on a transient and short-term basis for individual meetings; and
  3. Those responsible for AML and CTF, including the Money Laundering Reporting Officer and Nominated Officer.

For further background and discussion please see our previous blogs: White Paper Series: Transforming corporate culture by “driving personal accountability and responsibility” for lookers-on seeing most of the game? and Gambling Commission publishes Summer 2023 Consultation Response and Betting & Gaming Council announces New Industry Voluntary Code.

New Requirement

From 29 November 2024, LC 1.2.1 (2) will read:

1.2.1 (2). The specified management offices are those offices (whether or not held by a director in the case of a licensee which is a company, a partner in the case of a licensee which is a partnership or an officer of the association in the case of a licensee which is an unincorporated association) the occupier of which is by virtue of the terms of their appointment responsible for:

a)  the overall management and direction of the licensee’s business or affairs (this is likely to be the Chief Executive Officer, Managing Director or equivalent).

b)  chairing the Board (where the licensee has such a body) where that appointment is held for a fixed or indeterminate term of office, unless:

        1.  the position is held only on a transient and short-term basis for individual meetings; and
        2.  the licensee retains evidence in support of point 1.

  ….

i)   the licensee’s anti-money laundering and counter-terrorist financing function as head of that function his is likely to include the following:

a)   for holders of casino licences, the person responsible for compliance with the relevant regulations (and appointed in accordance with those regulations); and the person responsible for submission of reports of known or suspected money laundering or terrorist financing activity under the relevant legislation (and appointed in accordance with the relevant regulations)

b)   for holders of licences other than casino licences, where an individual has been appointed to submit reports of known or suspected money laundering or terrorist financing activity under the relevant legislation, that individual.

As regular readers will be aware, the Gambling Commission consulted on the proposal that the Board Chair be required to hold a PML “to ensure that those responsible for scrutiny, strategy and leadership at the most senior level within the organisation”. This means that, where licensees sit within corporate groups, the obligation to hold a PML could be extended to the Board Chair of the top parent company, and CEOs or Directors of parent companies, due to the level of influence those individuals are able to exercise over the licensee. It is therefore important that licensees with extended group structures: (1) consider which individuals within their wider group may be impacted by the new requirement so any necessary PML applications can be made as soon as possible; and (2) if there is uncertainty, proactively contact the Gambling Commission for clarification in advance of the requirements coming into effect.

Next Steps

The changes come into force on 29 November 2024, meaning PML applications for these positions must have been granted before this date. On the basis that it can take eight weeks for the Gambling Commission to process a PML application (assuming there are no issues with the application), PML applications need to be submitted as soon as possible. If affected individuals do not hold a PML before 29 November 2024, the licensee will be in breach of LC 1.2.1 (2).

Please get in touch with us if you have any questions about PMLs, if you would like assistance with PML applications, or if you are interested in our PML training services.

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02Oct

Global Gaming Expo 2024: Bahar Alaeddini to moderate a stellar panel of regulators

2nd October 2024 Harris Hagan Event, Harris Hagan 155

From 7-10 October 2024, the Global Gaming Expo (G2E) will make its grand return to The Venetian Expo.

In partnership with the International Association of Gaming Advisors (“IAGA”), it will host the panel Where Sports Betting’s Growth Sits on the Regulatory Agenda, which will be moderated by IAGA General Counsel and Harris Hagan Partner, Bahar Alaeddini.

The panel will examine the rapidly expanding US-based betting landscape after the pivotal overturn of the Professional and Amateur Sports Protection Act 1992 by the US Supreme Court, and feature insights from the following stellar panel of regulators:

  • Andrew Rhodes, Chief Executive, British Gambling Commission
  • Dennis Mullen, General Counsel, Indiana Gaming Commission
  • Kirk Hendrick, Chairman, Nevada Gaming Control Board
  • Marcus Fruchter, Administrator (Executive Director), Illinois Gaming Board

Please see the below details for your calendar:

Date: Monday 7 October 2024

Time: 09:00 – 09:50 PST

Location: Bellini 2101, The Venetian Expo

Over the course of the conference, IAGA will also be hosting a wide range of sessions focused on other key issues facing global gaming.

Bahar will be attending G2E with John Hagan. Please get in touch if you would like to arrange a meeting.

Register for your tickets on G2E’s website – we look forward to seeing you there!

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30Sep

Harris Hagan promotes Jessica Wilson to Senior Associate

30th September 2024 Harris Hagan Event, Harris Hagan, Uncategorised 173

Harris Hagan is delighted to announce that Jessica Wilson will be promoted to Senior Associate with effect from 1 October 2024.

Jessica has been a tremendous asset to the firm since joining as a newly qualified solicitor in 2019, working on the specialist due diligence and licensing aspects of some of the largest M&A transactions in the gambling sector in recent years, as well as advising our clients generally on gambling law and regulatory matters.

We congratulate Jessica on her achievement and we are confident that she will contribute enormously to the continued success of the firm.

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09Sep

Harris Hagan speaks at the Backing The Punt conference

9th September 2024 Harris Hagan Event, Harris Hagan, Uncategorised 166

Harris Hagan is delighted to join the leading Australian gambling law firm Senet, virtually, for their two-day conference, Backing the Punt. The conference will focus on the issues, challenges and opportunities facing the betting and racing industry in Australia.  

The event will take place on 11-12 September 2024 at the RACV City Club & Conference Centre in Melbourne. Partner, Bahar Alaeddini, will be joining virtually on 11 September 2024 to speak on the panel, International showcase – what are the trends and developments in international wagering, racing and sports betting?.

The panel will be moderated by Julian Hoskins, Principal at Senet, and the other panellists will include:

  • Ben Haden, Director of Research and Statistics at the British Gambling Commission
  • Scott Scherer, Shareholder at Brownstein Hyatt Farber Schreck
  • Joseph Borg, Partner, WH Partners

For full details and tickets, see Senet’s website. 

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02Sep

Global Gaming Women – Championing Inclusivity Webinar

2nd September 2024 Harris Hagan Event, Harris Hagan 162

On Tuesday 3 September 2024, at 12.45pm-2.15pm BST. Global Gaming Women (“GGW”) will host a webinar titled “Championing Inclusivity”.

The webinar will be co-moderated by Harris Hagan Partner, Bahar Alaeddini, and Christina Thor-Rankin (Principal Consultant 1710 Gaming).  Together with the panellists, they will discuss the opportunities and challenges faced by women of colour in the industry.

The other panellists will include:

  • Monia Shafaq, Chief Executive Officer at Gordon Moody
  • Natasha Whittaker, Director of People Strategy, Operations and Governance at Games Global
  • Natasha Harris, Executive Director for People Services at the British Gambling Commission
  • Pallavi Deshmukh, Chief Executive Officer at NetGaming
  • Stephanie Wong, Head of Policy at the Betting and Gaming Council

To attend, please register here.

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30Jul

Gambling Survey of Great Britain: Publication of first annual report

30th July 2024 Chris Biggs Harris Hagan, Responsible Gambling, White Paper 204

After more than 3 years of development and significant industry scrutiny, the Gambling Commission published the first Gambling Survey for Great Britain (“GSGB”) Annual Report on 25 July 2024 (“GSGB Annual Report”).

In a press release announcing the publication, the Gambling Commission stated that this first edition features responses from 9,804 people “but will increase to around 20,000 by next year.” The Gambling Commission goes on to state that the GSGB Annual Report provides greater insight into attitudes and gambling behaviours:

“presenting a fuller picture, illuminating participation rates, the type of gambling activities participated in, experiences and reasons for gambling, and the consequences that gambling can have on individuals and others close to them.”

We have previously explained the GSGB’s structure and purpose in our blog Gambling Survey of Great Britain: Gambling Commission’s new approach to collecting gambling participation and prevalence data.

We now turn to the key facts outlined in the GSGB Annual Report and consider the information published by the Gambling Commission to support the GSGB.

Key Facts

The GSGB Annual Report highlights key facts from the data collected from adults aged 18 years and older living in Great Britain, summarised below.

Participation

  • 48% of GSGB participants participated in any form of gambling in the past four weeks. This figure dropped to 27% when those who only participated in lottery draws were excluded.
  • GSGB participants were more likely to gamble online (37%) than in-person (29%), however this difference was largely accounted for by people who purchase lottery tickets online. Excluding those individuals, GSGB participants were more likely to gamble in-person (18%) than online (15%).
  • The most commonly reported gambling activities were the National Lottery (31%), purchasing tickets for other charity lotteries (16%) and buying scratchcards (13%). The average number of activities for those who had participated in gambling in the past 4 weeks was 2.2 activities during that period.

Experiences of and reasons for gambling

  • 41% of GSGB participants who had gambled in the past 12 months rated the last time they gambled with a positive score (6 or above on a scale of 0 to 10), 37% expressed they neither loved nor hated it (score of 5) and 21% gave a negative score. When participating in lottery draws was excluded the pattern displayed a slightly higher proportion of positive scores, with 50% positive, 31% neutral and 19% negative.
  • The most common reasons that GSGB participants gambled were for the chance of winning big money (86%), because gambling is fun (70%), to make money (58%) and because it was exciting (55%).

Figure 11 of the GSGB Annual Report displays the full list of reasons for gambling in the past 12 months surveyed, represented below where the percentages comprise individuals who reported ‘sometimes’, ‘often’ or ‘always’ as a reason for gambling for each statement.

Notably, GSGB participants were also surveyed on the types of leisure activities in which they participated in the past 4 weeks. The vast majority of participants indicated they spent time with friends and family (98%), watched TV (95%) and listened to music (91%), with many also reported shopping (80%), eating out at restaurants (73%), participating in sports or exercise (64%), doing DIY or gardening (61%) or going to pubs, bars or clubs (50%).

Consequences from gambling

  • GSGB participants who had bet on non-sports events in person were over 9 times more likely than average to have a score of 8 or higher on the Problem Gambling Severity Index (“PGSI”), which represents problem gambling by which a person will have “experienced adverse consequences from their gambling and may have lost control of their behaviour.”
  • GSGB participants who had gambled on online slots were over 6 times more likely than average to have a PGSI score of 8 or higher.
  • 41.4% of GSGB participants with a PGSI score of 8 or higher reported experiencing at least one of the severe adverse consequences asked about.

The severe adverse consequences surveyed required ‘yes’ or ‘no’ responses and consisted of: (1) losing something of significant financial value because of gambling; (2) relationship with spouse or partner or family member breaking down because of gambling; (3) experiencing violence or abuse because of gambling; and (4) committing a crime to fund gambling or pay gambling debts. Overall, 2.8% of GSGB participants who had gambled in the past 12 months reported experiencing at least one severe consequence.

The Gambling Commission also highlights that the GSGB is the first time that it has collected data on the consequences of someone else gambling. 47.9% of GSGB participants reported that someone close to them gambled. The most reported severe consequence of someone else gambling was the breakdown of a relationship with a spouse, partner or family member (3.5%).

Gambling Commission Guidance

To accompany the GSGB Annual Report, the Gambling Commission released Guidance on using statistics from the Gambling Survey for Great Britain (“GSGB Guidance”). The purpose of the GSGB Guidance is to ensure the GSGB data is reported correctly, with the Gambling Commission reiterating that these official statistics are new and are collected using a different methodology than previous official statistics.

The GSGB Guidance therefore lists the purposes for which the GSGB can and can’t be used, as well as where it can be used with some caution, in relation to the data on: (1) gambling participation; and (2) the consequences of gambling within the GSGB Annual Report. Of note, the GSGB can be used:

  • to look at patterns within the data amongst different demographic groups;
  • to assess future trends and changes in gambling participation and consequences of gambling, measuring changes against the 2024 baseline; and
  • to describe the range of consequences that someone may experience as a result of their own gambling and as a result of someone else’s gambling.

The GSGB can be used with some caution “until further work is completed”:

  • to provide estimates of gambling participation amongst adults in Great Britain;
  • to provide estimates of PGSI scores amongst adults in Great Britain; and
  • to provide estimates of the prevalence of consequences of gambling amongst adults in Great Britain.

The GSGB should not be used:

  • to provide direct comparisons with results from prior gambling or health surveys;
  • as a measure of addiction to gambling; and
  • to calculate an overall rate of gambling-related harm in Great Britain.

The GSGB Guidance also addresses the misuse of GSGB statistics. The Gambling Commission encourages the use of the statistics to support the understanding of important issues relating to gambling, but expects that “anyone using official statistics should present the data accurately and in accordance with the guidelines presented .”

Reiterating the message issued by Andrew Rhodes, Chief Executive Officer of the Gambling Commission, in his open letter to the industry in August 2023, if an individual or organisation is found to be using the GSGB inaccurately, the Gambling Commission “may contact them and request that they correct the statistics.” In “severe cases or continued misuse of official statistics”, the Gambling Commission may refer the individual or organisation to the Office of Statistics Regulation (“OSR”).

Whilst the Gambling Commission’s expectations for the use of the GSGB statistics have been made clear, it has not defined what it considers a “severe” case of misuse. However, the Gambling Commission’s Executive Director, Tim Miller, stated during the VIXIO Regulatory Intelligence webinar on 23 July 2024 that the Gambling Commission will challenge any misuse “in an appropriate way” such as by referral to the OSR, which has included “some examples in recent months where has taken those sorts of approaches.” We therefore encourage the industry to ensure its adherence with the GSGB Guidance.

Strengths and Limitations

The Gambling Commission has acknowledged that measuring adverse consequences from gambling in surveys is a challenging task, and cites Professor Patrick Sturgis’ statement in his Assessment of the Gambling Survey for Great Britain (GSGB):

“Given the widespread negative social norms around gambling, particularly harmful gambling, obtaining representative samples and accurate response data is at the more difficult end of what survey researchers seek to measure in general populations.”

Furthermore, the Gambling Commission states in its press release that Professor Sturgis warned that estimates of problem gambling rates should be used with caution due to the risk that the new methodology “substantially overstates the true level of gambling and gambling harm in the population.” The Gambling Commission updated its Gambling Survey for Great Britain – technical report to include a list of the GSGB’s strengths and limitations and caveats for the interpretation of PGSI score estimates produced in the GSGB.

Having set out these strengths and limitations, its expectations for the correct use of the GSGB statistics and the consequences for misuse, the Gambling Commission has seemingly attempted to temper the industry’s concerns about the accuracy and reliability of the new official statistics. During the VIXIO webinar, Miller stated that the Gambling Commission has listened to “recognised experts in data and statistics in developing the GSGB methodology”, as well as the GSGB Guidance. Acknowledging that all methodologies have limitations, Miller stated that a key difference is that the Gambling Commission is “very open and transparent about what the GSGB’s current limitations are”.

Miller defended criticism of the GSGB’s methodology and noted that the Health Survey for England is not without significant issues, having presented an “inflexibility” to update questions for relevance and an inconsistent method for the Gambling Commission to collect data on gambling activity. Miller confirmed the Gambling Commission continues to invest “a significant amount” into the GSGB methodology and is “confident that as to develop , this will become the new gold standard”.

Next Steps

The Gambling Commission explains that in a typical year, there will be four wave-specific publications from the GSGB, plus an annual report. In his blog accompanying the GSGB Annual Report, Ben Haden, Director of Research and Statistics at the Gambling Commission, explains that the GSGB removes its over-reliance on the PGSI as a “proxy for harms” and, even at a headline level, “a more general analysis of wider consequences and behavioural symptoms will give a far more nuanced picture than ever before.” Haden also states that two “in-depth reports” will be released before Christmas as the Gambling Commission commences its deeper analysis of the GSGB statistics.

Where the Gambling Commission acknowledges that the GSGB may overstate the true level of gambling and gambling harm in Great Britain, the release of the GSGB Annual Report will not calm industry concerns about the accuracy of these official statistics. Indeed, we share this concern where the proposals outlined in the White Paper may be evaluated, and potentially derailed, by these statistics. The Gambling Commission promised a “gold standard population survey for the whole of Great Britain”, in its effort to improve the quality, robustness and timeliness of official statistics on gambling behaviour in Great Britain: this is no doubt a challenging task. Therefore, noting Miller’s confidence in the GSGB as the Gambling Commission continues to develop the methodology, we will continue to follow the GSGB closely with the hope that the Gambling Commission moves closer to its aim.

Please get in contact with us if you have any questions about the GSGB Annual Report, the GSGB Guidance or how these statistics may impact your business.

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30Jul

Baroness Twycross announced as new Gambling Minister

30th July 2024 Chris Biggs Harris Hagan, Uncategorised 144

On 26 July 2024, the Government announced that Baroness Fiona Twycross was appointed Minister for Gambling, in addition to her roles as Baroness in Waiting (Government Whip) and Parliamentary Under-Secretary of State at the Department for Culture, Media and Sport (“DCMS”).

Baroness Twycross has been a member of the House of Lords since November 2022 and previously held the roles of Opposition Whip and Shadow Spokesperson (Education) from February 2023 until the election. Prior to this appointment, Baroness Twycross had not contributed to gambling-related parliamentary debates, nor voted on any gambling-related legislation in the House of Lords.

However, in yesterday’s parliamentary debate on the Horseracing and Bloodstock Industries, Baroness Twycross made her first comments on the new Labour Government’s position regarding the horseracing betting levy, stating:

“… the previous Government undertook a review that concluded only in April. I am committed to working with noble Lords across the House to make sure that we get the right arrangements for the industry and the levy is administered efficiently to best support racing. It is too soon, however, for me to commit to the shape of future policy.”

Baroness Twycross also briefly addressed the topic of gambling reform and gambling-related harm:

“As stated in the Government’s manifesto, we are absolutely committed to strengthening protections for those at risk. The Gambling Commission’s new survey which came out last week really helps to show the wider picture of gambling behaviour across Great Britain, and we will consider its findings very carefully.”

The news of Baroness Twycross’ appointment followed a fortnight of industry speculation that Stephanie Peacock MP, who has also been appointed as a Parliamentary Under Secretary of State in DCMS, would also be appointed the gambling ministerial portfolio. Peacock was tipped for the role, having previously been the Shadow Minister for Media, Gambling and Sport and having recently contributed to parliamentary debates on the topic of gambling, including on the Football Index collapse and gambling advertising in sport, and having made a speech at the AGM of the Betting and Gaming Council in February.

Baroness Twycross’ comments in yesterday’s parliamentary debate come ahead of the House of Lords recess at the close of business today. The House of Lords will return on 2 September 2024.

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