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Ladbrokes owner proposes ban on gambling ads linked to sport Government under fire for failing to back mandatory betting levy
(about 4 hours later)
The owner of Ladbrokes, GVC, the UK’s largest gambling company, has broken ranks with the rest of the industry by announcing a series of proposals to protect problem gamblers, including an end to TV ads and football shirt sponsorship. The government has come under fire for its “outrageous” failure to back a mandatory levy on betting firms to increase funding for addiction treatment, in defiance of a call from the industry’s regulator.
GVC’s chief executive, Kenny Alexander, called on the rest of the industry to follow suit as he announced a number of measures he said would “do more to protect the vulnerable”. Labour’s deputy leader, Tom Watson, accused the government of “dragging its heels”, after the sports minister, Mims Davies, said in a speech that the existing voluntary levy “does work”, moments after the chair of the Gambling Commission said the opposite.
Among the most eye-catching proposals is a total ban on gambling ads attached to sports broadcasts, except for horse racing. The suggestion goes further than existing industry plans for a pre-watershed “whistle-to-whistle” ban during sports events. The row came as Ladbrokes’ owner, GVC, the UK’s largest gambling company, broke ranks with the industry by announcing proposals to protect problem gamblers, including an end to TV ads and football shirt sponsorship.
GVC’s chief executive, Kenny Alexander, called on rivals to follow suit as he announced a number of measures he said would “do more to protect the vulnerable”.
Among the most eye-catching proposals is a total ban on gambling ads attached to sports broadcasts, except for horse racing. The suggestion goes further than existing industry plans for a pre-watershed “whistle-to-whistle” ban.
GVC also said it would voluntarily end all sponsorship deals that promoted its brands on football shirts or on pitchside advertising hoardings, matching a policy proposed by Labour in 2017.GVC also said it would voluntarily end all sponsorship deals that promoted its brands on football shirts or on pitchside advertising hoardings, matching a policy proposed by Labour in 2017.
The company sponsors the shirts of two clubs, Sunderland and Charlton, both in the third tier of English football. It also sponsors the Scottish Premiership and will retain that deal, although it will donate pitchside hoarding space included in the agreement to responsible gambling messages.The company sponsors the shirts of two clubs, Sunderland and Charlton, both in the third tier of English football. It also sponsors the Scottish Premiership and will retain that deal, although it will donate pitchside hoarding space included in the agreement to responsible gambling messages.
It said curbing ads would “allow fans to watch their favourite teams without seeing any incentives to bet” and called on football governing bodies and the gambling industry to do the same.It said curbing ads would “allow fans to watch their favourite teams without seeing any incentives to bet” and called on football governing bodies and the gambling industry to do the same.
Alexander said: “While the vast majority of our customers enjoy our products responsibly, it is high time that the industry did more to protect its customers from potential harm. As the UK’s largest gambling company, and owner of Ladbrokes and Coral, we at GVC are doing exactly that. I call on our industry peers to help us bring about an end to broadcast advertising which promotes sports betting in the UK no matter the time of day.” Alexander said: “While the vast majority of our customers enjoy our products responsibly, it is high time that the industry did more to protect its customers from potential harm. As the UK’s largest gambling company, and owner of Ladbrokes and Coral, we at GVC are doing exactly that.”
GVC, which is based in the Isle of Man, also pledged to channel 1% of its gambling revenue into research, education and treatment projects by 2022, 10 times the voluntary levy of 0.1%.GVC, which is based in the Isle of Man, also pledged to channel 1% of its gambling revenue into research, education and treatment projects by 2022, 10 times the voluntary levy of 0.1%.
To underscore its commitment to treating problem gamblers, GVC said it was establishing an independent trust to fund treatment of problem gambling and would also offer addicts Gamban software free of charge. Gamban allows customers to block betting sites from their phones and computers, rather than rely on the often ineffective industry-wide self-exclusion tool GamStop. While GVC has volunteered to increase its contribution, the industry has been accused of not paying its fair share, including by the charity GambleAware, which collects the proceeds of the voluntary levy and backs a new mandatory one.
Alexander said: “Increasing investment in research, education and treatment tenfold by 2022, funding treatment centres and using technology to intervene before a problem develops, alongside our existing behavioural analytics, brings to life our commitment to be the most trusted and enjoyable betting operator in the world. The Gambling Commission chairman, Bill Moyes, said on Thursday that “hard cash” via a mandatory system was required to increase funding for research, education and treatment from about £12m to at least £70m a year.
“The industry should and can do more to protect the vulnerable, and today’s announcement demonstrates GVC’s commitment to delivering on that.” But the sports minister said the current system worked and “continues to have support from government and industry”, although she said tougher options would remain on the table.
Some of GVC’s smaller rivals are expected to question its motives for curbs on advertising, given that its brands have hardly any shirt deals and, in the case of Ladbrokes and Coral, already enjoy household name recognition, meaning they are unlikely to suffer much compared with smaller companies. Watson said: “It’s outrageous that this Tory government is ignoring its own statutory adviser’s call for a mandatory levy on gambling companies to fund support for problem gamblers.
GVC’s announcement came on the morning that the government and the Gambling Commission announced a three-year strategy to address the harm caused by gambling. The plan will bring together businesses, the regulator and charity groups to promote prevention of addiction and education about the risks of gambling. “Both the regulator and the industry agree that the current levy system needs to change to increase the level of support, but true to form, this government is dragging its heels.”
It will also involve an effort to improve research into problem gambling and increased funding for treatment centres via the NHS. There is just one specialist gambling addiction clinic but funding will be released to open more. The Scottish National Party MP Ronnie Cowan said he was disappointed the government was yet to back a statutory levy. And the Bishop of St Albans said the government’s position was “extraordinary and surprising”.
The sports minister Mims Davies, whose predecessor Tracey Crouch resigned over delays to curbs on fixed-odds betting terminals (FOBTs), said she expected the industry to make faster progress on tackling harm caused by betting. At the launch of the gambling commissions report & disappointed to hear that the U.K. government have still not decided to apply a statutory levy to raise money for gambling related harm. The gambling commission is supporting it. Why won’t the government?#reducinggamblingharms
She said: “Protecting people from harm should be at the heart of every gambling business. Addiction can ruin lives and it is vital that those who need help are given the right treatment at the right time. Davies, whose predecessor Tracey Crouch resigned over delays to curbs on fixed-odds betting terminals (FOBTs), said she expected the industry to make “faster progress” on tackling harm caused by betting.
“The Gambling Commission’s strategy reflects our clear expectation that the whole sector must come together to reduce problem gambling and the harm it does to people and their families.” She said: “Protecting people from harm should be at the heart of every gambling business. Addiction can ruin lives and it is vital that those who need help are given the right treatment at the right time.”
Ladbrokes Both Moyes and Davies were speaking at the launch of the commission’s three-year strategy to reduce gambling-related harm, focusing on prevention, education and treatment and support for problem gamblers.
Moyes said the regulator hoped to deliver a “seismic shift” in harm prevention and would not hesitate to take regulatory action against betting firms that cross the line.
The commission has increased the level of financial penalties on firms that breach their licensing obligations in recent years, amid a string of scandals involving problem gambling.
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