Finding a healthy regulatory balance

This article summarises a panel discussion at the annual CMS Gambling Conference 2019

Achieving a balanced regulatory approach can be crucial to the success of the gambling industry as a whole, especially in today’s climate of intense scrutiny and mistrust of gambling operators. This need for balance was the common theme uniting the panellists at “Finding a healthy regulatory balance,” the first panel discussion of the conference.

However, as moderator Dan Waugh of Regulus Partners notes, achieving balance is often easier said than done – especially in an industry filled with heavyweights, in which power can be unevenly distributed. Amidst a rising tide of regulatory costs (including sanctions, support for safer gambling programmes and initiatives, and rising taxes), it is becoming increasingly difficult for gambling operators to generate revenue and look for new revenue streams. A balanced approach towards gambling regulation can – and should – be adopted to facilitate the growth of the industry.

John O’Reilly, Chief Executive of Rank Group, thinks that one of the reasons why balance can be so hard to achieve is that the voices of consumers can be drowned out by those of regulators. In particular, John notes that balance can be more readily struck if the consumer, as a key stakeholder, is afforded a say in gambling regulatory policy.

The primacy of consumer protection is precisely why it can be so difficult to strike an appropriate regulatory balance in the gambling sector. Neil McArthur, Chief Executive at the Gambling Commission, notes that, though gambling is undoubtedly a part of British life, for many consumers, it is also a source of significant harm. Neil queries whether gambling products are designed to maximise consumer safety, or rather to acquire “people as products.” According to the Gambling Commission, there can be no doubt that player safety, and not commercial drivers, should take centre stage in the balancing act between regulation and gambling operators. This is reflective of the public and political mood towards gambling, which has swung towards concern over the impact of harmful gambling.

Part of the problem is in how gambling operators address the challenges of preventing consumer harm – though operators tend to emphasise “stable statistics,” (i.e., where the proportion of consumers who have suffered harm from gambling is static), the goal should be to reduce the number of consumers experiencing gambling-related harm. A diversity of viewpoints, Neil noted, and a holistic approach towards consumer protection, can help better achieve balance in the industry.

That being said, who should bear the responsibility of consumer protection – the regulator, the gambling operator, or the consumer? The practice of self-exclusion, for example, was originally conceived as a consumer-oriented responsibility, and yet operators are frequently sanctioned for failing to support self-exclusion work.

Andreas Meinrad, Chief Executive at BetVictor, thinks that gambling operators can protect consumers and still be commercially active. The key, he says, is to frame consumer protection in a positive light. A positive, dialogue-driven approach can help overcome regulatory hurdles, and can even eliminate resistance from gamblers who might otherwise feel antagonised or offended by operator policies, such as the requirement to verify deposits and impose age or identity checks.

Anna Hemmings, CEO of GamCare, also thinks that the key to adopting a balanced regulatory approach is to know whether consumers are making informed decisions. Young people – a vulnerable section of the population – are being exposed to gambling companies more now than ever before, and therefore need to adequately understand the risks involved. Though it is not incumbent on gambling operators to solve the world’s gambling problems, they should ensure that they have the right tools at their disposal to deal with problem gambling behaviour head-on. Anna notes that this can be helped, in part, by raising awareness for gambling addiction, which often gets short shrift in comparison with other addictive behaviours.

Ultimately, John O’Reilly says, protecting consumers makes smart business sense, as gamblers are the lifeblood of the industry itself. That is why both Neil of the Gambling Commission and Andreas of BetVictor hope that upcoming reviews in the industry will foster dialogue and a collaborative approach towards regulatory balance, in a way that promotes both business and consumers alike.

To download the accompanying brochure please click below.