PGR Gives Positive Feedback to Gambling Act Review
Established by the House of Lords, Peers for Gambling Reform as a stakeholder of gambling legislation in the United Kingdom has voiced its opinion about the upcoming reforms and concluded that they will have a positive impact on the British society and economy.
National Economic Research Associates consulting firm was the one assessing the effect of the planned reforms on the UK economy as part of the Gambling Act’s review. NERA Economic Consulting, Inc., commented on the planned changes in the following fields:
- Gambler’s affordability review
- Mandatory stake limits for high-risk iGaming products
- Funding the institutions specialized in gambling research, education, and treatment
- Baning sponsoring sports events and teams
- Perceive loot boxes as a type of gambling.
Peers for Gambling Reform’s head, Donald Michael Ellison Foster, Baron Foster of Bath PC notes that the new legislation will change the UK gambling industry for the better, and increasing RET funding will create new jobs. Economy-wise the reforms are justified and it’s the Government’s turn to show political will and implement them.
The research team carried out a thorough examination of the reforms with economic modeling, risk assessment, and much more.
Even though the new legislation is likely to affect the profitability of the gambling and betting industries, the businesses engaged in them can overcome the difficulties without additional expenses. The case study was conducted on the 5 biggest businesses in the country and their after-tax profit in 2019 (697mln GBP in total).
The report also touches upon one of the most concerning issues – unemployment, admitting that it can be a result of the changes. Nevertheless, the reforms will contribute to labor market diversification and the rise of wages.
According to the review, the industry will pay more taxes and the money can be directed to research and treatment of gambling-related harm. Every year the UK government spends a huge amount of money on institutions that prevent and treat the effects of gambling. With the suggested reforms those expenses will be reduced.
Apart from treatment people who suffer from gambling-related harm sometimes lose their jobs and even homes and it’s the government’s duty to support them during those hardships.
The research results also show that iGaming and betting businesses are less scrutinized than land-based casinos and betting shops.
Many experts argue that banning grassroots sports clubs from having betting sponsors will have a negative effect on them but the recent report believes that new sponsors will take their place. And even though the numbers seem very high the PGR stresses that the income from betting partners is only a small part of their revenue.