Government body slams UKGC for "unacceptably weak understanding" of gambling harms
Public Accounts Committee questions lack of data, targets and slow roll-out of regulatory changes in damning report
The UK government’s Public Accounts Committee (PAC) has claimed the Gambling Commission (UKGC) and the Department for Digital, Culture, Media and Sport (DCMS) have an “unacceptably weak understanding” of the impact gambling harms have on UK players.
In a 21-page report the PAC said both gambling regulatory bodies had failed to protect consumers, claiming the nature of evidence gathering was “patchy and behind the curve” while failing to take account of the increasing shift towards online.
“The pace of change to ensure effective regulation has been slow and the penalties on the companies, which do not effectively tackle problem gambling, are weak,” the PAC report claims.
Addressing the failings of DCMS, the committee said there is a “sense of complacency” within the department concerning the tackling of gambling-related harm.
Echoing prior comments made by the National Audit Office earlier this year, the PAC said the regulator’s ability to protect consumers is “fundamentally constrained by inflexible funding” and an outdated legal and regulatory framework.
The PAC has also cited a funding shortfall due to gambling operators’ M&A activity, as effectively fewer firms make less of a contribution to the UKGC.
To tackle this, the PAC has recommended that DCMS draw up a timetable for a review of the 2005 Gambling Act within three months as well as proposed methods for eliminating the funding gap.
The PAC has claimed the government has a “poor understanding” of problem gambling, with both the UKGC and DCMS not knowing their impact on problem gambling or measures which would demonstrate whether or not regulation is working.
As an example, the PAC cited the recent ban on the use of credit cards for online gambling, questioning whether the UKGC understands the effectiveness of the ban.
It highlights online fixed-odds betting as being an urgent area of action for both the UKGC and DCMS, recommending a review of increasing effectiveness at reducing harm caused by the vertical within three months.
Finally, the report claims that where gambling operators fail to act in a socially responsible way, consumers do not have the same rights of redress as in other sectors.
A spokesperson for the UKGC said it was committed to making even “further and faster” progress to address gambling harms, including those highlighted in the prior National Audit Office report.
“Over the past two years we have strengthened player protection measures, tightened the regulation of the online sector, introduced strict age and ID verification checks, brought in a ban on gambling with credit cards, and been tougher through our enforcement activity,” the UKGC said.
“In recent weeks we have also established an Experts by Experience advisory group who will help us to strengthen our efforts and help ensure we make an impact where it matters.
“We accepted before the Committee that there is always more to do and we are carefully considering the findings of their report to see what other additional steps we can take,” the UKGC added.