Why a review of gambling laws is badly needed - Flutter chief executive

The UK government is expected to announce a major review of gambling laws in the coming weeks. It may surprise you to hear this from the chief executive of a leading betting company – but I believe this review is badly needed.

The rules for gambling in this country have not kept pace with how society has been changed by technology. Our industry is still regulated by the Gambling Act of 2005; a creation that predates the smart phone, social media and on-demand streaming, all of which have comprehensively changed the betting landscape not only for racing but for all sports and events.

Gambling itself has gone through a technological transformation over the last 15 years, with most of the activity now taking place online. While there have been changes to the rules that operators must follow, there has not been the root-and-branch reappraisal by ministers which is now overdue.

In recent years, within the framework of the Gambling Act, regulation has progressed in some important areas and responsible operators have introduced further consumer protections through voluntary measures and innovative technology.

However, the downside to this organic piecemeal approach is that it can lead to inconsistencies and gaps which the less scrupulous can exploit with less regard for customer welfare.

While it is true that problem gambling rates are stable and low by international standards, it is equally true that we have not always got it right as a sector. Today’s industry leaders must ensure that collectively we are doing all we can to prevent customers suffering harm from gambling, while allowing the many who enjoy it safely to continue to do so.

What should be done? Flutter will continue to innovate and improve our own business, but we also believe the rulebook should change for all operators so that we create a level playing field – placing player safety at the heart of all our businesses.

Policy levers should be targeted towards a strategic goal for customers and operators alike of helping everyone know and keep to their limits. Nothing in life is positive when it is taken to excess whether that be betting, drinking, working or eating.

There are a number of innovative and bold ways through which we could promote moderation in an era of digital betting and gaming. In this review, nothing should be off the table in trying to deliver change that genuinely helps those who need it.

The government will no doubt set out the exact scope of the review when it is published. Until then, at Flutter we are focusing our thinking on some big and challenging questions, which need to be answered through joined-up thinking, open-minded engagement and clear evidence.

The first question to be tackled is whether companies can do more to promote safer gambling among those customers who are younger adults. There is a good argument to be made that specific protections should be put in place for this group as they learn about managing their finances and get used to our products. There is a reason the financial services sector makes it harder for younger people to obtain credit and the same rationale should apply to the betting sector.

Second, it is worth examining whether society should be clearer on a recommended maximum length of time an individual should spend gambling. There are a number of measures that could be taken to increase transparency of time spent and move betting closer to the consumption of alcohol or calories when it comes to guideline amounts.

Third, we should ask questions about online spend and stake limits. At the heart of this policy area is a debate about where you strike the balance between personal freedom and societal intervention. As an industry leader, I believe we need to work harder to find an answer to this question. And importantly in areas such as this, no one operator can solve this issue alone, it has to be solved across the sector.

Meanwhile, we must avoid cosmetic gestures that sound good in the headlines but don’t achieve anything meaningful, and we must think about the impact of policy changes on the wider ecosystem including the racing industry.

It has been suggested in recent weeks that football clubs should be banned from carrying sponsorship by betting brands. But, unlike tobacco, gambling is not inherently harmful for an individual if done responsibly and commensurately with someone’s financial means. What is more, such a move would choke off valuable revenue for all levels of football at a time of significant pressure on the sport. We should focus on effective change instead.

Delivering a new settlement on gambling is not something anyone can achieve alone. As a leading operator with experience in markets around the world – as well as the Betfair, Paddy Power, PokerStars and Sky Betting & Gaming brands in our stable in the UK – we have significant information and expertise to make available in the upcoming review.

But we want to avoid a process in which everyone quickly falls into obvious and pre-determined battle lines. Historically there have been issues of trust between industry, reformers and parliamentarians. If we are to come to an informed settlement on the issue of gambling in the digital age then that must end. We want to spend the coming weeks actively testing our thoughts with a wide range of different groups involved in the debate – from reformers to industry colleagues to sports bodies to customers.

The racing industry is a key stakeholder in this process, and now more than ever it is vital that our two sectors support each other. As we continue to navigate the challenges presented by the pandemic, we must also ensure the government review process gives close consideration to the special relationship between our two industries, and the potentially significant impact that legislative change may have on racing and its fans.

There is so much about Flutter – its products, its brands and its commitment to safer gambling practices – that I am deeply proud of. But I also believe that gambling regulation in this digital age needs a strategic reassessment so that it can be what it is at its best: a safe and enjoyable leisure activity. If we get the balance right then we can build a much better industry which commands the support of its customers – and also wider society too.
Peter Jackson is chief executive officer of Flutter Entertainment