Gambling Advertising Debate

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Department: HM Treasury

Gambling Advertising

Carolyn Harris Excerpts
Thursday 23rd April 2026

(1 day, 12 hours ago)

Westminster Hall
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Beccy Cooper Portrait Dr Beccy Cooper
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Will the hon. Member give way?

Carolyn Harris Portrait Carolyn Harris (in the Chair)
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Order. Dr Beccy Cooper, you will be making a speech. There will be an appropriate time for you to make your points.

Charlie Dewhirst Portrait Charlie Dewhirst
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Thank you, Mrs Harris.

I will put some numbers on my discussion of the value of regulated versus unregulated advertising. The regulated market is expected to decline by more than £107 million this year, but unregulated companies will increase their expenditure to £845 million this year, which is up 32%, and to £934 million by the end of 2028, which is another 10% rise. A significant proportion of that investment originates from overseas companies that are not paying British tax, not regulated by the British market and not subject to British laws.

It is not just about advertising. More advertising by unregulated and illegal gambling companies only drives people to the harmful, unregulated and untaxed black market. Stakes on the illegal market are already estimated to equate to £4.3 billion per year. A PwC report based on H2 Gambling Capital data shows that the size and growth of the UK’s unregulated market has increased in recent years, alongside the implementation of tighter regulations. In my opening, I mentioned that regular betting and gaming contributes £6.8 billion to our economy and generates £4 billion in taxes—£4 billion that the Treasury could potentially lose. The effects of that are self-evident.

There are other measures that are squeezing people. The Gambling Commission has found that there are concerns about the introduction of new checks and how intrusive they may be. The last Government wanted to pilot that scheme, and there are potential benefits to it, but we have to be a bit careful, because the concern is that blanket checks are being brought in without a pilot scheme. People are naturally nervous—the regular people who like to have a bet are concerned—about the intrusive nature of what private companies, and indeed the Government, are doing to try to access their financial data. We need to be wary of that, because it can put people off using British, regulated companies and push them toward foreign, unregulated spaces that are not subject to the same gambling taxation, which often allows for more attractive stakes and so on.

All of that is drawing people into a place we do not want them to be in. We do not want to over-regulate our own market and force people into a place that is of no advantage to us and that we have no influence over. We must be very mindful of that, whether it is gambling or any other sector.

The modelling shows a depressing outlook for the industry under the current taxation system. There is some very headline-grabbing stuff: Coral has pulled out of its deal to sponsor Cheltenham, and the industry expects to lose 16,000 jobs across the UK, a number of which are high-tech jobs. This is a high-tech industry these days; there is a huge online element to it, as we know. Those jobs will be lost in places such as Stoke, Warrington, Leeds, Sunderland, Manchester, Nottingham and Newcastle-under-Lyme where the successful gambling firms are based. Those job losses will then filter down to the gambling shops on our high streets; in recent weeks, we saw William Hill announce the loss of 200 high street stores.

Beyond the costs to the taxpayer and people’s jobs and lives, gambling advertising and sponsorship also supports broadcast media and sports across the spectrum. As well as regulated advertising falling, the WARC report also found that sponsorship by regulated companies plateaued in 2021 and is set to decline. That sponsorship covers prize money, along with increased levels of interest, competition and viewership. It is a virtuous circle. It gets people enthused by sport and gets them involved. It is not something that we should see as simply a bad thing to do.

Given that much free-to-air sports coverage—along with the lower levels or grassroots of certain sports—is largely dependent on this advertising revenue, there is a risk that we will further lose free-to-air coverage because sports will have to look to a more lucrative broadcast deals. Look at examples from the grassroots, with those firms sponsoring lower league clubs in football and the good work that they do there to support grassroots football—it is not just about what is going on in the premier league. We see less of those things on a day-to-day basis, but they are going on in clubs across the country.

While sponsorship by regulated companies plateaued and is falling, total sponsorship by the gaming sector has grown, from £158 million in 2019 to £250 million this year. The growth is not by those regulated companies, however. Unregulated firms have accelerated their sponsorship—more than tripling it in the same period—and by next year more than half of sponsorship will be by unregulated firms.

Alex Ballinger Portrait Alex Ballinger
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The hon. Member’s concerns are about the unregulated market. However, the proposals in the APPG report are talking about restrictions on gambling advertising, including unregulated gambling advertising. He talks about the growth in unregulated gambling advertising, which is of course a big problem. But surely if those restrictions were implemented, it would give a better chance to bookkeepers that already have shops on the high street and a well-known reputation?

Carolyn Harris Portrait Carolyn Harris (in the Chair)
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Order. These are very long interventions. Some Members have given a speech and others will have an opportunity to speak later and will be able to make their points. We need to make progress.

Charlie Dewhirst Portrait Charlie Dewhirst
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The hon. Member has made a number of points on that subject. I will make some progress as I am sure that you, Mrs Harris, are keen for me to wrap up this contribution as soon as I can.

Charlie Dewhirst Portrait Charlie Dewhirst
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My right hon. Friend has jogged my memory. There is a serious issue here. A lot of this advertising is online in a space that we cannot necessarily regulate, and search engines will bring up these sites with obvious key words. For example, a problem gambler who has been part of GamStop or similar will have access to non-GamStop sites and that will bring up illegal betting sites. There is no way of regulating these particularly easily. That is why we need to be very conscious about what we do to damage our own regulated market.

We are exposing people to unregulated websites where protections for those who need them do not exist. In fact, illegal operators specifically promote those sites on the internet through the various ways that they can advertise in a less regulated space. They also do other things regarding how bonuses are constructed and how they target people and so on. Regulated betting and gaming operators are already committing 20% of their advertising to safer gambling messaging, in addition to the messaging that sits within all advertising. During Safer Gambling Week, 1.53 million safer gambling tool limits were in place—an increase of 22% on the previous year. I was at a gambling shop on my high street ahead of the grand national a couple of weeks back, and it was interesting to note that they now run a similar system to Pubwatch—so it is not just online. They share information about individuals in the local area who have problems and need to be supported should they wish to try and place a bet in one of those shops.

None of those robust protections and specific licence conditions for operators, nor the strengthening of the UK advertising codes in 2022—which included new protections for children and vulnerable adults—will make any difference if the Government drive people into the black market.

In conclusion, banning something does not necessarily stop it from happening, and the Government’s policies and this report—if it were to be implemented—could in theory move more people into that less regulated illegal space. The hon. Member for Halesowen said that he is not anti-gambling, but my concern is that he is anti-regulated gambling by UK companies, and there is a very real danger that we will push people into the black market.

Carolyn Harris Portrait Carolyn Harris (in the Chair)
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If we are to allow Front-Bench speakers to have ample time, we should bear that in mind with any interventions.

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Beccy Cooper Portrait Dr Cooper
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The query is that if something is already illegal— [Interruption.]

Carolyn Harris Portrait Carolyn Harris (in the Chair)
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Order. No talking across the Chamber.

Beccy Cooper Portrait Dr Cooper
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Let me see if I can answer that, and the hon. Member can tell me if I have not. During our experience with big tobacco, there was a big illegal market—a black market. We brought in various rules and regulations, and we got our environmental health officers and Customs on it. We were absolutely able to look at the black market in tobacco alongside regulating the legal industry. It is perfectly possible to do. In the world of online advertising—the hon. Member referred to the wild west—we have to be very intelligent in how we look at regulation, but it is possible. It needs better brains than mine to figure out how to do it digitally, but it absolutely is possible.

Moving on, evidence shows that one quarter of people who gamble have done so in direct response to advertising. That figure rises to almost four fifths among those at highest risk.

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Alex Ballinger Portrait Alex Ballinger
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Will the hon. Gentleman let me respond?

Carolyn Harris Portrait Carolyn Harris (in the Chair)
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Order. Mr Ballinger, please sit down. Shadow Minister, please speak through the Chair.

Louie French Portrait Mr French
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I apologise, Mrs Harris.

Carolyn Harris Portrait Carolyn Harris (in the Chair)
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Thank you. Mr Ballinger, if you want to intervene, can you do it appropriately?

Alex Ballinger Portrait Alex Ballinger
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The APPG recognise that horseracing and greyhound racing are much more dependent on gambling advertising than other industries; that is why we made that separation.

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Lilian Greenwood Portrait Lilian Greenwood
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I can tell the hon. Member that FRAs have been piloted to ensure that they are genuinely frictionless before implementation and that they are targeted at those showing signs of harm, rather than simply those spending high amounts safely. The FRA pilot found that only 3% of all gambling accounts would be subject to an FRA where their losses were significant enough to warrant it, and 97% of checks would be frictionless without any change to customer experience. Nevertheless, if there is further information that the hon. Member requires, I am sure he will follow that up.

I conclude by reiterating our commitment to working with a wide range of stakeholders, including industry, on this issue. We will continue to do what we can to ensure that gambling advertising, wherever it appears, is socially responsible and does not exacerbate the risks of gambling-related harm. I am grateful for the contributions from all hon. Members today; it has been a genuinely interesting and constructive discussion. The Government look forward to continuing this work in the months ahead.

Carolyn Harris Portrait Carolyn Harris (in the Chair)
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I call Alex Ballinger to wind up briefly.

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Alex Ballinger Portrait Alex Ballinger
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It is in the report. I have just told you.

Carolyn Harris Portrait Carolyn Harris (in the Chair)
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Order. Can we not have debate across the Chamber, please? Can you finish your wind-up, Mr Ballinger?

Alex Ballinger Portrait Alex Ballinger
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Absolutely. This has been driven a lot by the argument that the unregulated industry will somehow capture the market. If we are talking about restrictions on gambling advertising, that should include such restrictions on the unregulated gambling market, which as we can see is already advertising in football and online in lots of spaces. Those are things that we are calling for, too. That 9% of the market, which is in our report, will hopefully not grow.

We should not pretend that the unregulated market is the only one causing problems. There are issues in the regulated market as well. We have heard about the bonuses, the promotions, the free bets and other issues from people with lived experience, who have faced them in the regulated market too, which is the majority of gambling harm.

Across the House, I think there is a wish to go further in protecting children and young people, even though we may have disagreements about how we do so. There are some good recommendations in our report, I hope, for sensible steps to protect children and young people from gambling advertising, and particularly from gambling harms that might come to them in future.

Question put and agreed to.

Resolved,

That this House has considered gambling advertising.