An Overview of the British Gambling Industry

17.04.2007

The English have a passion for their gambling and this can be seen in virtually every aspect of its culture – from bookies on high streets to popular bingo halls and, more recently, online gambling.

72% of the population regularly takes part in some form of gambling activity or another, including the National Lottery. Britons also enjoy their scratchcards, fruit machines and horsebetting. It is estimated that the annual turnover for the British gambling industry in 2005 was around 53-billion GB Pounds and this number obviously increased in the two years that followed.

In 1968, the United Kingdom established the Gaming Board that had the job of overseeing all gambling activities in the country. In 2005, the Gambling Commission, under the new Gambling Act, took over all the responsibilities of the Gaming Board and took on additional tasks. The Commission liaises with the national government and regional authorities on all matters pertaining to gambling and the implementation of the new Gambling Act, which should take effect in September, 2007.

The Gambling Commission was founded and is funded by the British Department for Culture, Media and Sport. The Commission is accountable to the English parliament directly through the Secretary of State and is bound to impartiality and is considered an independent statutory regulator. It is run by ten commissioners and needs to publish an annual report about its progress. Under the new Gambling Act, all gambling activities – excluding the National Lottery and spread betting – will be subject to new regulations set out by the Gambling Commission. All commercial gambling in the United Kingdom will thus be fully regulated.

Regulation of the English gambling industry has several clear goals. By requiring gambling establishments to become fully licensed and adhere to stringent codes of practice, the Gambling Commission hopes to ensure that children and ‘vulnerable people’ will be protected by gambling activities. The Commission also works jointly with another organization known as the RIGT (Responsibility in Gambling Trust) which aims to raise the awareness of problematic and addictive gambling habits and provides education and prevention methods for this growing social problem.

As an independent statutory group, the Gambling Commission has several powers which include reviewing the licenses of all commercial gambling establishments including betting shops, online casino sites and traditional casinos; imposing conditions on licenses; establishing a strict code of conduct; penalizing and revoking licenses if found that these establishments do not adhere to the code of conduct; powers of ‘entry, search and seizure’ to determine that gambling establishments are not adhering to the law; and to initiate criminal proceedings.

As from September, 2007 commercial gambling establishments will be allowed to advertise on the British airwaves, as long as they do not steer from certain guidelines pertaining to the advertising. These include refraining from promoting gambling that could be seen as socially irresponsible in any light, and from aiming to youth culture. All in all, the British gambling industry is moving towards a policy of regulation, which it hopes will be beneficial to its society and economy in the long run.