The Social Market Foundation (SMF) has proposed a radically new framework for gambling regulation in the UK. 

The influential cross-party think tank has published proposals that include an automatic £100 GBP per month spending cap for all customers – with individuals only allowed to spend more once they have undergone strict affordability checks, carried out by an independent gambling ombudsman.

The SMF also argues taxation should be adjusted to penalise operators based in tax havens like the Isle of Man or Gibraltar, and benefit those companies based in the United Kingdom itself, saying:

“Gambling taxation should be redesigned around a system of incentives which reflect a company’s level of onshore presence. This means that operators could still decide to base their headquarters in locations like Gibraltar, the Isle of Man or Alderney, but that decision would carry significant tax implications.”

Additionally, the think-tank has called for ‘white label’ agreements to be banned, so foreign firms with little incentive to protect UK consumers can’t simply buy access to the British market via existing UKGC license holders. 

It also calls for a new cross-government ‘Gambling Quartet’ to be established to oversee gambling policy – which is currently the responsibility of the Department of Digital, Culture, Media and Sport. 

Justifying the SMF’s proposals, Dr James Noyes, primary report author, said:

“Our proposed threshold sets the bar low enough to protect everyone, including those on low income, but is high enough to reflect the vast majority of gambling activity among the general population. Gamblers should be free to spend more than this threshold, but only after they show that their gambling is neither unaffordable nor harmful.”

Responding to the proposals, the Betting & Gaming Council (BGC), pointed out that it’s members already take responsible gambling seriously, conducting affordability checks when required, and are contributing over £3 billion in take to the UK each year. 

AYO.NEWS says:

While it is tempting to believe the SMF proposals won’t gain any traction, with the COVID-19 lockdown-triggered economic crisis now gathering steam in the UK, and millions predicted to lose their jobs, the government will be looking for scapegoats to distract the mainstream media and pitchfork wielding mobs – and there’s no more tempting target than the already vilified gambling industry. 

The anti-gambling crusaders, like Meg Hillier, MP, chair of the House of Commons Public Accounts Committee, already have the knives out for the UKGC, accusing it of being “torpid” and “toothless”,  and it seems likely maximum stakes of between £1 and £5 will be introduced for online slot games, along with a ban on VIP incentives and other common practices. Oh, and lets not forget the increasing likelihood of a complete ban on football gambling sponsorships in the near future. 

However, when it comes to the tax proposals, the SMF report’s suggestions are probably unworkable. Regarding the Isle of Man’s tax regime – we wonder if the authors of the SMF’s report are even aware that the island is a self-governing British Crown dependency, not part of the United Kingdom, that has an entirely separate tax system, set by its own government? Similarly, Gibraltar, as a British Overseas Territory, is not part of the United Kingdom either. 

So, though Westminster could increase tax on UK operations, Gibraltar and the Isle of Man could respond by introducing even more incentives of their own to keep companies based there.  Of course, the UK itself could try to attract operators by offering a competitive tax regime!  

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