UK gambling reforms add fuel to Gambling Ombudsman talks

The concept of a UK Gambling Ombudsman might’ve looked long gone, but it was just revitalised again in Parliament this week.

Over two years ago, the Gambling Review White Paper in 2023 finally saw the light of day following years of consultations, bringing forward a total of 62 recommendations for a more sustainable UK gambling sector.

Among these was the creation of a Gambling Ombudsman – a figure turned mythical at this point, supposed to bridge the gap between politicians, consumers and the industry while ironing out unnecessary tensions and miscommunication.

With the main recommendation being that this role should be filled and operational within 12 months of the White Paper’s publication, we are now way past that point and this was seemingly forgotten except perhaps for some quiet chatter happening in the background.

Well, this is no longer a matter of beating around the bush, as the Gambling Ombudsman debacle was finally raised in public during this week’s parliamentary debate on gambling reforms, chaired by Sir Desmond Swayne.

The Ombudsman question came from Sir Iain Duncan Smith, Member for Chingford and Woodford Green, and Chair of the All Party Parliamentary Group (APPG) on Gambling Reform.

“Some two years ago it was recommended very clearly that a gambling ombudsman should be set up. So far, across two Governments, nothing has happened on that,” he said.

Smith’s enquiry was answered by none other than Ian Murray, Minister for Creative Industries, Media and Arts, who confirmed that the role “hasn’t been ruled out” as the government sees it as the “most effective way to deliver independent alternative dispute resolution”.

However, despite a clearly positive sign for what lies ahead of UK gambling, the establishment of a Gambling Ombudsman will come with its own caveats, Murray highlighted: “Work on this is ongoing, but it will require primary legislation, and we are conscious of the need to put in place an appropriate mechanism as soon as possible.

“With all the other things that we want to do to try to bed this in, we are very conscious that the industry is having to deal with an awful lot of change at the moment, but it is still on the agenda.”

Tax reforms drive discourse

The change that Murray was referring to is of course the recently introduced gambling tax hikes in the new UK Budget.

Once the red briefcase of the Chancellor of the Exchequer Rachel Reeves was opened, it was announced that Remote Gaming Duty will rise from the current base level of 21% to 40% in April 2026, while the General Betting Duty will follow suit in March 2027 – climbing from 15% to 25%.

And while the new tax costs will hit online gaming the most, the UK retail offer will not escape unfazed, with omnichannel operators likely looking to cut costs and soften the blow – essentially impacting the end user as well.

Couple that with the costs required for the full adoption of the White Paper recommendations, which are still being implemented, and you end up with a costly bill across the board.

Gareth Snell, Member for Stoke-on-Trent, also made sure to remind his fellow parliamentarians of that: “There is a cost to the sector from that, and a cost that often gets passed on to consumers.”

But for some, the British gambling industry has still not been placed under the burden that they believe it deserves, with Charlie Maynard, MP for Whitney, being one of those voices.

Calling on even more reforms, Maynard said that gambling should be heavily restricted in its ability to advertise regulated products to UK consumers – be it through sponsorships or more conventional marketing channels, like TV and social media.

He made his case by listing countries like Italy, Spain, Germany, Belgium, and the Netherlands, where stricter marketing rules and outright blanket bans were previously introduced.

What Maynard failed to acknowledge, however, was that Spain has not become a lesser victim of black market advertising and Italy officials reported that one in four players were playing on the black market in 2024. 

The Netherlands has also seen consumer searches for illegal gambling websites increase five-fold since its sponsorship restrictions in 2022, while Germany currently has one of the lowest channelisation rates among regulated European markets.

One point raised by Maynard that could actually resonate with the current realities of the gambling sector is that local authorities need more powers to dictate the issuing of licensing permits on their territories – something that councils have been advocating for months now, and that the UK Gambling Commission has openly addressed.

Whatever challenges and opportunities lie ahead for the UK gambling sector could be effectively navigated through with the support of a dedicated Gambling Ombudsman. Although the details around that are still hazy, the intensifying relationship between politics and gambling are proving to have at least kickstarted the discussion.

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