Gambling: Regulatory Reform

Louie French Excerpts

Tuesday 2nd December 2025 Westminster Hall

[Mr Louie French (Old Bexley and Sidcup) (Con)]

As always, it is a pleasure to serve under your chairmanship, Sir Desmond, and I thank all hon. Members for their contributions. For transparency, I refer Members to my entry in the Register of Members’ Financial Interests.

Regulation of gambling must be a careful balance to avoid unintended consequences. Last week, the Chancellor of the Exchequer chose to take a gamble on this regulated industry, and on the lives of some of the most vulnerable people, who are at risk of gambling harms. She took an ideological position instead of a practical one. Despite clear warnings, she chose to fuel the black market, where there are no protections for problem gamblers, and to jeopardise thousands of jobs and livelihoods in the regulated sector as a result, as we have heard today.

Labour’s tax raid was not just anti-gambling industry; it was anti-consumer and, we believe, anti-common sense. I am grateful to the hon. Member for Witney (Charlie Maynard) for securing this debate, so that we can properly interrogate the facts and the impact that the Chancellor’s actions will have on the more than 22 million people across the country who safely enjoy a flutter each month. To put that number into context, it is more than 34,500 people per constituency represented in this House—enough to enjoy a majority anywhere in the country.

Whether or not Members like gambling, the facts are clear. The highly regulated gambling sector in the United Kingdom supports tens of thousands of jobs, contributes billions of pounds in tax each year, and sustains industries and sports, from horseracing to the high street betting shops that sit firmly in the fabric of the communities that we all represent.

The choices the Chancellor has made will, according to modelling by EY, result in an estimated 16,000 job losses throughout the UK. Those will be particularly concentrated in areas where large operators are based, such as Stoke, Warrington, Leeds, Sunderland, Manchester, Nottingham and Newcastle-under-Lyme, before filtering through to betting shop closures on high streets throughout our constituencies. The Labour party has so far failed to explain how those missing jobs and business rates will be paid for—perhaps by even higher welfare spending and taxes.

We are all aware that, particularly in recent years, the debate about gambling and its regulation has been dominated by those who see gambling exclusively through the lens of harm. It is, of course, right to support those who struggle with addiction, and I am proud to support a range of specialist charities in that space that do fantastic work on the frontline, helping people across the country. However, the vast majority of punters enjoy a bet safely each week. We cannot and should not build a regulatory system that assumes that every person who gambles is high risk. That is simply untrue. It is the nanny state on steroids from the left of British politics. From buying a weekly National Lottery ticket to a casual acca with your mates on the 3 o’clock kick-offs and beyond, there is a spectrum of risk and reward, as well as exposures, the complexities of which we must appreciate and understand.

The oversimplification of the issue does far more harm than good. We can learn how that happens from neighbouring countries such as the Netherlands. At the start of this year, the Dutch Government raised their gambling tax on gross gaming revenue from 30.5% to 34.2%—a much smaller rise than that which this Government have announced, with another rise planned. The Dutch Government combined it with much tighter restrictions, strict spending caps, deposit limits and sweeping advertising bans. Within months, the Netherlands has seen regulated gambling revenue collapse by around 25% and tax receipts fall significantly, despite the higher rate, which has left a €200 million shortfall. The percentage of gamblers using regulated sites dropped below 50%, and the Dutch regulator itself reported that illegal gambling sites now receive more visits than regulated ones, with searches for the “100 best illegal gambling sites” surging.

That is the reality of the situation in a comparable European country. Over-regulation and excessive taxation have driven gamblers to the black market. We can see the same pattern developing here in the UK, with even the OBR highlighting that the black market will gain from those tax choices. That is before we even consider debating outstanding issues such as affordability checks. In the black market, there are no affordability checks, no safer gambling tools, no self-exclusion and no protection at all for punters.

We can see that moralistic and heavy-handed regulations simply displace gambling into the unregulated sector, rather than reducing gambling rates and risks of harm. The sector could not be clearer: once punters have entered the black market, they are unlikely to come back. That would be a lose-lose situation for the Government that could result in lower tax revenue and fewer jobs, a loss of revenue for bookies and sports that rely on their sponsorship, and a loss of consumer protections for the public. Sadly, however, that is where the Government are now heading fast.

There is another area where the Government’s policy is simply not functioning: the new statutory levy. The industry has spent the past three years implementing more than 60 measures from the gambling White Paper. The statutory levy, introduced in April this year, is one of the most significant and most costly. Operators have now made their first payments under the mandatory system, totalling more than £100 million, but there is still no clarity about how charities such as Gordon Moody, GamCare, Betknowmore UK and others that do fantastic work in the treatment and prevention space can actually access any of that.

We have warned the Government about that, privately and publicly, for many months. That is why we did not feel that we could support the gambling levy legislation as drafted. To date, only UK Research and Innovation has published basic guidance. Organisations that were promised long-term certainty have no idea how, when or even if they will be able to bid for levy funds to continue their vital work. Frontline charities supporting people suffering from gambling harms tell us that they cannot plan ahead, cannot recruit or even retain staff, and in some cases cannot continue services at all because the system remains so opaque.

Before the Government bring down another wave of major reforms, impose the most aggressive tax rises in Europe, and throw operators and charities into further uncertainty, should they not first ensure that the levy is actually up and running properly? Should they not ensure that charities with experts who have decades of experience are not forced to close because of the ongoing ideological madness in Westminster, which has stacked the deck against those with more pragmatic views about gambling and how we prevent harms? It makes no sense—literally none—to introduce new burdens when the existing regulatory framework is still incomplete and not functioning as the Government promised. Perhaps if the Minister could get his ministerial colleagues to properly engage with anybody in the sector, the Government might have a clue about what is happening: they are gambling with lives.

Protecting consumers means keeping them in the regulated domestic market if they choose to gamble: that is a very simple truth. I am all in favour of bashing the bookies—it is a long-established British tradition—but I want it to be done by the punter, not by this anti-fun Labour Government. Hon. Members should already know that British operators, although not perfect, prevent the use of credit cards, enforce 18-plus age verification, operate GamStop self-exclusion, display prominent safer gambling messages, use data to identify markers of harm, adhere to the strict advertising rules that are in place, and provide stable funding for research, education and treatment. The unregulated market that the Government are fuelling to the tune of £6 billion in extra stakes does none of that. Once someone has moved into that unregulated environment, there is no longer any meaningful ability to protect them from gambling harms.

Will the Minister personally review the commissioning of prevention and treatment to ensure that it is being managed fairly and that charities are not being deliberately excluded? Will he commit to a formal review, across the House, of affordability checks and of the pilot that has been extended by the Gambling Commission? Does he believe that the £26 million of funding given to the Gambling Commission is sufficient to stop the growth of the black market? Lastly, what message does he have for the thousands of employees at risk of losing their jobs this Christmas because of Labour’s tax raid?