Posted on: March 3, 2023, 07:02h.
Last updated on: March 3, 2023, 09:42h.
Lucy Frazer, a UK parliamentarian who recently became the country’s third Culture Secretary in a year, is confident that the government’s gambling white paper is coming soon. However, she isn’t rushing, and with the legislative session ending this month, there could be another delay.
Frazer took over as the head of the Department of Culture, Media, and Sport (DCMS) at the beginning of February. This was part of a shakeup of positions within Prime Minister Rishi Sunak’s government.
The DCMS has direct oversight over the white paper, which has been in the works for more than two years. Those two years have also been filled with government upheavals that have impacted a number of programs.
White Paper a Priority
Speaking this week at the government-led Gambling with Lives forum, Frazer asserted that the reforms are a priority for her, as well as for Sunak. She said the government is “committed to publishing it soon,” but cautioned that the definition of soon, in this case, is relative.
Frazer explained that she has spent the past several weeks talking to industry insiders to glean information about operations. Based on the official transcript of her speech, she appears to have spent most of her time talking to anti-gambling lobbyists.
In one comment, Frazer asserted that “gambling doesn’t just destroy the lives of the gamblers themselves ….” This and other remarks seem to lend credence to the belief that stricter regulations, including affordability checks, are coming.
While Frazer acknowledges that the white paper is “an absolute priority,” she stopped short of defining a time frame for its release. Instead, she explained that she wants “to give these issues justice and take some time” to discuss them thoroughly.
The UK government will take a break at the end of this month and not return until May. While it’s possible that the white paper could make an appearance before then, there could be another delay.
Even if the government releases the white paper, it won’t be the final word. In addition to allowing feedback and input on the recommendations, Frazer made it clear in her comments that gambling reform will be a constant work in progress going forward.
A shift in the UK’s market has already begun, and there are indications that things could get worse before they get better. Flutter’s recent financial health update is one possible indication. While it reported an increase in revenue, it also suffered a post-tax loss of £305 million (US$365.51 million) across all its operations.
The UK-based gaming company hyped its US performance while downplaying its activity elsewhere. CEO Peter Jackson described operations outside the US as uncertain, as they face “regulatory changes and challenging benchmarks.”
There has been talk of Flutter considering a listing on a US-based stock exchange, which would take its place behind its primary listing on the London Stock Exchange (LSE). According to the Financial Times, Jackson has also admitted that the US could become its primary listing.
This signals a change in how companies view the value of having a spot on the LSE. CRH, one of the largest building materials companies in the world, is considering giving up its spot, following in the footsteps of UK-based Ferguson. The heating and plumbing supply company moved out last year.
Shell, the massive oil company, considered moving from the LSE to a US exchange as well. SoftBank had been considering listing its Arm computer chip company in either the UK or the US, and has now decided that the US is the smartest option.
At a time when finding economic stability is a priority, clipping the gambling industry would be counterproductive. Amid economic uncertainty and inflation, disposable income is at a premium for many consumers, including gamblers.
If gamblers have to contend with far-reaching rules that restrict their favorite pastime even more, the £7.1 billion (US$8.57 billion) the regulated gaming industry provides to the economy will likely see a huge reduction.