GambleAware Closure: What UK Gambling Firms Face

This spring brought a big change in the UK gambling ecosystem, with the closure of GambleAware. That organisation had been in existence for more than 20 years and was responsible for increasing awareness of gambling addiction as well as promoting responsible betting.

GambleAware was a charity that operated independently, but that reported to the government. In addition to supporting people struggling with gambling addiction through treatment, it also provided invaluable research and education to help in tackling the problem. Key industry figures described it as a ‘visionary’ organisation and expressed concern about its closure.

There is no question that the end of GambleAware marks a new era for the UK gambling industry; one which will affect operators, affiliates, and suppliers – as well as the public.

Why did GambleAware close?

The primary reason for the closure of GambleAware was a move towards a more state-led approach to tackling addiction. It officially shut down at the end of March, and all the services it provided have been transferred to the government.

New commissioners have been appointed to cover England, Wales, and Scotland. They will be charged with overseeing the gambling addiction treatment, preventative education, and research services previously offered by the charity.

Where things become more significant for the industry, though, is in the matter of how those services will be funded. That will happen through a statutory levy on all gambling site operators, replacing the previous voluntary system.

The amount paid by each operator will be calculated based on the form of gambling they provide; the sector they are in; and their operating costs. It is expected to bring in £100 million each year to fund gambling addiction services.

What will the impact on the industry be?

Clearly, the financial impact will be the greatest for the industry, but it will not be the only one. The research into addiction that GambleAware carried out had a lasting effect on the design of casino games.

It led to several casino gaming features being banned, including the slot game features called turbo spins and autoplay. The use of audio and visual elements to persuade players that a win was bigger than their original bet was also made illegal for licensed casinos.

Review and test sites like casino.net still evaluate providers based on this criteria, so their legacy will continue for now at least.

It is an example that highlights the importance of the deep research work that the charity undertook. This helped casino game suppliers and operators to ensure that their products were responsible. It also enabled affiliate sites to identify problems within gambling sites and bring them to the attention of potential customers.

We will have to wait and see whether the new system produces such effective research, education, and action. With the funding that it will receive, there is the expectation of impressive results.

Financial pressures likely

That funding seems almost certain to cause serious financial pressures for gambling operators. They are not only looking at the new levy, but also at an increase in their tax burden.

The Treasury has raised Remote Gaming Duty (RGD) to 40%, whereas it had been set at 21% before. The government will also be setting a £5 betting limit for slot machines.

Online gambling sites will be hit particularly hard by the statutory levy, because they have lower operating costs than land-based venues. Given that online gambling is now the most popular type, the public may not appreciate the change.

A bumpy transition

It should be noted that GambleAware was in favour of the levy, but expected to be in charge of collecting it. The actual decision made came as a surprise to the charity, but has already produced some knock-on effects.

GambleAware financed a number of other important organisations – including Gamban and the Gambling Lived Experience Network (GLEN). The former has confirmed that it has been forced to scrap its TalkBankShop scheme.

This allowed people with addictions to block all gambling sites on electronic devices. It has been dropped due to the loss of funding.

Meanwhile, GLEN has complained about the transition, where multiple organisations are now responsible for funding. Of course, the change is in its infancy, but there are signs that it will not be smooth.

What the future holds

This is a difficult process for the industry, but it does not have to be for the worse. The increased funding for addiction research, education, and treatment that the levy provides could lead to improved outcomes in the future.

The closure of GambleAware is a risk in terms of tackling the addiction issue, but we must hope the new model produces results.