Key Moments:
- BGC chief Grainne Hurst told a Treasury Select Committee there is “no social ill with gambling,” shocking attending MPs.
- The 2024 Gambling Survey for Great Britain reported 2.7 percent of adults scored 8 or higher on the Problem Gambling Severity Index, with 1.5 percent of youths meeting the problem gambling screen.
- Industry experts and regulators highlighted the need for product-specific risk management ahead of the UK Budget on 26 November 2025.
Intense Parliamentary Debate Over Gambling’s Social Impact
Betting and gaming executives faced the Treasury Select Committee amid growing scrutiny of gambling’s social impact. Grainne Hurst, chief of the Betting and Gaming Council (BGC), told MPs that gambling does not cause social harm. Her comment shocked the committee and led to immediate calls for clarification. Committee Chair Dame Meg Hillier MP publicly expressed her astonishment at the remark.
Earlier, Stewart Kenny, former co-founder of Paddy Power, gave evidence emphasizing that betting operators actively nudge new sports bettors toward playing online slots via free-spin promotions. According to Kenny, this process transitions customers from lower-risk betting to higher-risk online gambling. Kenny was joined by Dr Theo Bertram from the Social Market Foundation and Carsten Jung from IPPR, providing further expert opinions to the committee.
New Data Signals Shifting Risks
The committee cited the Gambling Commission’s 2024 Gambling Survey for Great Britain (GSGB) as the main source of data. According to the survey, 2.7 percent of adults recorded a score of 8 or above on the Problem Gambling Severity Index, with an additional 3.1 percent categorized as moderate risk. The new findings replaced older, lower prevalence figures.
Dan Waugh of Regulus Partners, speaking to SiGMA News, suggested that the GSGB survey may overstate the scale of gambling issues compared to sector data in certain gambling verticals, and voiced concerns over the Commission’s engagement regarding survey methodology, an issue also highlighted by the Office for Statistics Regulation.
The Commission has affirmed its commitment to the GSGB as its official data source, referencing efforts to address recommendations from both the statistics watchdog and an independent review led by Professor Patrick Sturgis of the London School of Economics. Professor Sturgis was tasked with scrutinizing the GSGB’s survey methods, including running targeted experiments to understand why online self-completion surveys yield higher problem gambling rates than other approaches, and has outlined steps for future improvement. These initiatives have been acknowledged by the Office for Statistics Regulation.
Key Trends in Youth Gambling
Youth participation in gambling drew additional concern. The Commission’s 2024 youth report revealed that 1.5 percent of individuals aged 11 to 17 met the threshold for the youth problem gambling screen – a notable increase from a reported 0.8 percent the previous year. This trend is positioned as a significant issue for industry operators and policymakers alike.
How Product Design Influences Risk
Testimony before the committee underscored the importance of product design in shaping gambling behavior and risk levels. Stewart Kenny outlined typical customer journeys where promotional tactics drive sports bettors toward slot games, flagging the higher risk associated with such products. This pattern is reinforced by GSGB data and broader research indicating that online casino and slot games are more closely linked with elevated problem gambling scores compared to sports betting.
The implications for operators are that risk is not uniform across gambling products. Instead, product speed and engagement tactics have tangible effects on consumer risk and potential harm. As a result, regulatory and internal policy responses are being urged to focus on product-level controls rather than blanket approaches.
Strategic Approaches Ahead of the November Budget
With the UK Budget announced for 26 November 2025, operators are under increasing pressure to demonstrate robust risk management, especially in relation to higher-risk products such as online slots and casino games. Fears of job losses and shifts to unregulated markets have been voiced in response to potential tax increases.
To preempt rigid regulatory measures, operators are encouraged to deploy targeted interventions that reflect the true risk profiles of products. For instance, the frequency and depth of affordability checks should correspond to the speed and intensity of different gaming sessions, such as fast-paced slots versus weekly sports wagers.
Operator-Led Risk Management: Best Practices
Industry participants have an opportunity to influence future policy by proactively adopting risk-based controls. Six recommended actions include:
- Tiering affordability and player reviews according to the risk level of the product.
- Setting limits and clear opt-out options on cross-selling promotions, especially when moving customers from sports betting to slots.
- Embedding safer gambling prompts and interventions directly within high-risk gaming products.
- Improving transparency and efficiency in withdrawal processes, balancing anti-money laundering requirements with player trust.
- Using risk-adjusted revenue as a key performance indicator, rewarding sustainable player value rather than pure volume.
- Publishing a formal risk matrix ranking products by risk and corresponding control measures, subject to regular updates and independent review.
Policy Shifts and Industry Responses
Hurst warned that increased taxation may threaten employment and retail locations, while industry groups and public policy institutes highlight that targeted, product-specific taxes could raise substantial revenue and support policy goals with minimal disruption. Horseracing and other industries continue to argue against across-the-board tax hikes, citing the risk of closures and layoffs, yet recognition is growing for differentiated policies that more directly address higher-risk categories.
Preferred Pathways for Regulation
Operators are advised to support approaches that reflect actual product risks. Three leading strategies include:
| Strategy | Description |
|---|---|
| Risk-weighted Duties | Assigning higher duties to high-risk gambling categories and lower duties for low-risk areas to balance commercial pressures and minimize unintended consequences. |
| Proportional Affordability and KYC | Applying more stringent checks to higher-risk products while allowing lighter compliance for low-risk segments, improving efficiency and effectiveness of harm-prevention efforts. |
| Transparent Evidence Sharing | Making data on product design changes publicly available, inviting independent audits, and ensuring robust monitoring of impact on player behavior and harm. |
Industry at a Crossroads
The assertion that gambling does not contribute to social ills was not accepted by the committee. Instead, the focus remains on recognizing and managing risk at the product level. Operators are now faced with a choice: continue defending outdated positions or proactively lead efforts to shape rational, evidence-based standards that align with both regulatory demands and commercial realities. The industry has a limited window to influence forthcoming decisions before Parliament acts unilaterally.
- Author
Daniel Williams
