UK gambling faced with broken promises ahead of Budget

Gambling as a regulated sector in the UK has been deprived of the promise of equal treatment and meaningful support in the name of a sustainable future.

These were the words of Alun Bowden, SVP Strategic Insight at Eilers & Krejcik Gaming, in light of yet another study that media outlets have picked up to portray the gambling industry as an entity with limitless money that it spends recklessly – coincidently at a time of heated political discourse about tax hikes in the UK.

The story in question was run by The Guardian, highlighting the findings in a report by market analyst firm WARC which found that the gambling sector spent £2bn on advertising and marketing in 2024.

Bowden acknowledged that this estimate could be in the right area if calculating for above the line ads for all channels across all verticals, including lottery, but did not stop short of raising the question about how much is too much advertising. He also questioned what the licensed gambling sector would look like if its ability to stand out from offshore operators is crippled.

On LinkedIn, he said: “In a world where one site can look much like another on the surface, and the differences are in the nuances underneath, then how do you stand out?

“How do you get your message over to customers? How do you build a brand? How do you get customers to come back?

“And most crucially of all, in a world where the barriers to the black market are almost invisible, how do you persuade people to stay in the regulated market?”

Bowden’s statement rings true when looking across other European jurisdictions where gambling advertisements have been severely restricted. 

One example is Italy, where a blanket ban on all marketing was implemented in 2019, only for officials to realise that one in four players had been lost to the black market by 2024.

It is also worth noting that in their UK marketing spend, licensed operators are setting aside a substantial amount of money to promote safer gambling initiatives and responsible play, much like during the recent Safer Gambling Week.

This was at least acknowledged by The Guardian with the inclusion of a quote from a Betting and Gaming Council spokesperson, who said: “Crucially, 20% of all broadcast and digital advertising is dedicated entirely to safer gambling messaging, a voluntary commitment made by the UK industry.”

Bowden concluded: “Advertising was once considered the carrot of joining the regulated market, with tax and regulations the stick.

“Enter the regulated market, do the right thing and pay your way and you can advertise freely (ish) and together we can create a sustainable sector.

“This was supposed to be the promise, but it feels like everyone on all sides has not lived up to it.”

Dominoes already in motion?

Gambling was turned into a hot topic of contention over the last few months due to the upcoming UK Budget announcement taking place tomorrow, 26 November.

Multiple public figures, such as former UK Prime Minister Gordon Brown, have been actively calling for an increase in gambling taxes – met with equally vocal opposition from the gambling sector. It is no surprise that studies like the one by WARC have been more frequently published than usual.

The threat of an increased gambling tax on top of what the sector is already paying has caused some of the biggest operators in the UK to come forward and warn of unintended consequences, such as high street shops closures. Others have been pondering whether to fully exit the market.

Regardless of the outcome from Chancellor of the Exchequer Rachel Reeves’ speech on Wednesday, the effects of months-long tax debates are already evident, with Flutter relocating its Sky Bet headquarters to Malta, while legacy brand William Hill closed operations in several international jurisdictions to prepare for a potential top line hit.

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