28 October 2011

Casino News: Culture Secretary Announces UK Gambling Laws Are Inconsistent

Culture Secretary Jeremy Hunt has just announced that UK gambling laws are ‘inconsistent.’ However, he ruled out any immediate changes, despite concerns that measures need to be taken to tackle the increasing amount of gambling addicts. The 2005 Gambling act, which made the sector more liberal, was called into question, with Hunt claiming it was not ‘healthy.’ He told MPs in the Commons and Culture Committee, that the policy was in ‘limbo’ with issues concerning the operation of existing laws.

In 2007, legislation, which included restrictions of gambling, casinos, betting shops, and online gaming operators advertising on radio and TV was relaxed. Tony Blair proposed a major expansion of casinos, which was then scaled back by Gordon Brown. The number of regional ‘super casinos’ was restricted to one, and the building of 16 smaller casinos passed. The 2005 legislation also gave rise to the Gambling Commission -- an organisation responsible for the regulation of all gambling, except the National Lottery.

The Culture Secretary claimed there was still a number of question marks over the legislature, stating, "I think the truth is that it has not been a success and, as a result, in things like casino policy, we are in a kind of limbo at the moment which I don't think is healthy.

"There are a number of unanswered questions in terms of the way the Gambling Act is being implemented."

Tory MP Philip Davies also pointed out that there were inconsistencies in existing laws, such as the number of games machines allowed in High Street bookmakers as opposed to bricks and mortar casinos.

“Having a flutter is part of our national life,” continued Mr Hunt, saying that papers such as the Daily Mail and other organisations were correctly concerned about the threat of gambling addiction. Any changes to future legislation would centre on preventing even higher levels of problem gambling.

"There are inconsistencies in gambling legislation. And a lot of the reluctance to change things is because of people's concern [that] in some countries that have liberalised laws they have seen quite significant growth in problem gambling at the same time.

"That is the big question that needs to be addressed before any progress is made."

Lottery concern

Separately, Mr Hunt also said he was looking into the impact of a commercial lottery game launched last month.

The Health Lottery, run by the Northern & Shell media company which owns Express newspapers and Channel 5, is offering a top prize of up to £100,000 and says it hopes to raise £50m a year for health causes across the UK.

Charitable organisations have raised concerns about the lottery which will donate 20.34p per £1 ticket to charity compared with 28p for every National Lottery ticket.

Mr Hunt told MPs: "I am worried about the health lottery because protecting the income for good causes is a very important responsibility this government has and the National Lottery was set up in a way which would generate money for good causes."

"Society lotteries are allowed on the basis they are local lotteries and I want to be sure - and we are doing some work - to look into what the impact of the health lottery may be on good cause revenues."

Pressed by Conservative MP John Whittingdale on whether the health lottery was legal, Jonathan Stephens - the top civil servant at the Department of Culture - said that was a matter for the Gambling Commission.

Mr Hunt added: "If they concluded what was happening was not legal, I would expect them to take robust action."

The Gambling Commission would not comment on individual cases.


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