Posted on: September 26, 2023, 07:46h.
Last updated on: September 26, 2023, 07:46h.
The UK government has extended the deadline for industry input on its gambling white paper due to a data presentation error. The government and the UK Gambling Commission (UKGC) discovered their mistake and have given additional time for operators to provide feedback.
One key aspect of responsible gambling initiatives is the “problem gambling” rate, which measures the penetration of consumers at risk of gambling problems. The UKGC has previously stated that the problem gambling rate in the UK is low, around 0.02% since 2021. However, the rate presented in the gambling white paper was different, leading to the consultation period extension.
Clarifying the Figures
Upon further review and industry inquiry, the UK government admitted its mistake regarding the problem gambling rate for slot players in the 16-24 age group. The figure of 1.5% only applies to males in that age range. The overall problem gambling rate for individuals aged 16-24 is 0.8%, lower than the 0.2% reported by Health Survey England in 2018.
The rate specifically refers to slot players and does not reflect the overall problem gambling rate, which decreased from 0.04% to 0.02% between 2018 and 2021.
The UK government considers online slots a high-risk gambling option and is contemplating limiting the amount gamblers can spend on each spin. One proposal suggests capping online slot spins at £2 ($2.44).
As a result of the reporting error, industry players now have until October 4 to provide feedback on the proposed changes, which is a two-week extension.
Given the current pace of consultations and other pressing issues in the UK, further delays may occur. The gambling white paper is a set of recommendations that require industry input, and amendments and reforms to the draft framework are possible.
The UK will hold its general elections in January, after several years of political and economic instability. The forthcoming elections could introduce additional changes or lead to the abandonment of the proposed plans by the incoming government.
Lack of Industry Standards
The UKGC has frequently referenced the problem gambling rate when discussing the state of the UK’s gambling industry. Despite increased gambling activity, the level of problem gambling has remained constant.
Considering these repeated findings, it is reasonable to approach gambling regulations without excessive zeal. The UKGC has developed a new framework to obtain more accurate data on gambling harm, acknowledging that their previous assertions may not have been as precise as hoped.
In a published op-ed, UKGC boss Andrew Rhodes criticized the industry’s use of the problem gambling rate. He highlighted the lack of industry-wide standardization in the distribution and interpretation of the Problem Gambling Severity Index (PGSI) used to derive the rate.
Rhodes clarified that the PGSI results are based on the entire UK population, not just gamblers, causing confusion. The UKGC’s surveys have only been sent to small sections of the gaming population, resulting in biased and limited participation.
Rhodes also emphasized that labeling certain gambling types as “less risky” or “more risky” is misleading.
Rhodes’ op-ed serves as a reminder to the industry that “nobody is well-served by statistics being misused to further an argument.”