The stakes could not be higher

Will new legislation finally make online gambling safer for the vulnerable, asks Lydia Thomas

Week 16 Viewpoint

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The 2005 Gambling Act was the betting industry’s big bang in the UK, and chances are, you’ve been a part of that boom. In the past four weeks, nearly half of the population has gambled, whether that’s online, in a betting shop, playing bingo or buying a national lottery ticket.

In my Radio 4 series, Changing the Odds, I examine the consequences of that legislation, which was designed to stop crime and protect children but which propelled the UK to become the world’s biggest online gambling market.

Clinicians, politicians and academics have raised concerns about problem gambling rates and even industry bosses, like Stewart Kenny, who co-founded Paddy Power in the 80s, have become disillusioned. Kenny – my guide in the series – resigned when he felt the industry wasn’t doing enough to protect vulnerable people. Meanwhile, betting companies are raking in £15 billion a year – much of it online.

Week 16 Viewpoint Lydia Thomas

You and Yours producer Lydia Thomas.

It was the move online that changed everything. I’ve been reporting on the gambling industry for Radio 4’s consumer affairs programme, You and Yours, for the past decade. I’ll always remember the email that started it. A lorry driver, Chris, won £35,000 in an online casino, but the website wouldn’t pay him, citing its terms and conditions.

Familiar with tedious small print, I immediately realised they were designed to make it impossible to withdraw the money. The company paid Chris when I approached them and that opened the floodgates; dozens of listeners in similar situations wrote to me and, as a result of my reporting, the Competition and Markets Authority cracked down on unfair terms and conditions.

But then the listeners’ messages became even more troubling. People with obvious addictions were being made VIPs, with betting firms treating them like extra-special customers. They were sent offers, free bets and a manager as their personal contact who would call and invite them to events like the football. But you’re only made a VIP if you’re gambling – and losing – a lot.

One woman lost £50,000 in one night on one website

Listeners lost devastating amounts of money – often on credit cards. Gambling firms are supposed to intervene and ask for payslips when there are signs of gambling addiction. But one woman, who worked in finance in the City and had multiple credit cards, said she lost more than £50,000 in one night on one website. A young guy on disability benefits was £5,000 in debt – using payday loans.

Using Subject Access Requests – the right to ask an organisation if it’s using or storing your personal information – I obtained the data held on those customers. You could see that they were up all night, using a range of credit cards, chasing their losses. It was also clear that no one was intervening. Instead, if a customer was off the website for two days, a VIP agent would call them and offer a free bet to lure them back.

In 2020, after I submitted evidence to a House of Lords review into online gambling, gambling on credit cards was banned. After we broadcast these stories on You and Yours, betting firms offered to refund the money, but on condition that the customers signed non-disclosure agreements (NDAs). Many of the contracts stated the customer couldn’t even tell their spouse, let alone a journalist.

Twenty years since the industry’s big bang – the Gambling Act was passed in April 2005 and became fully operational in September 2007 – legislation to reform betting in the digital age is finally coming into force from 9 April. There will be a stake limit for online slot machines, with over-25s limited to £5 and 18- to 24-year-olds limited to £2 a spin, and a mandatory levy towards treatment and funding for addiction.

Speaking to gambling bosses for my series, it seems that they want to try and make the industry safe. But perhaps the dynamic will always be tricky. Some of their products can be addictive and gambling companies are just like any business – what really matters is their bottom line. LYDIA THOMAS

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Lydia Thomas is a producer on Radio 4’s You and Yours. Changing the Odds is available on BBC Sounds

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Radio Times Staff

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