Starmer and Reeves are right to call on regulators to go for growth. They now need to ensure their own ministers get the memo too
On Christmas Eve the nation’s top regulators received a gift from the Prime Minister. No, not a selection box or novelty pair of festive socks. In the face of a flatlining economy, Keir Starmer threw down the gauntlet, calling for a new regulatory environment, built on collaboration with business which was, “more pro-growth and pro-investment”.
The challenge for 2025 was clear. Regulation must not hold back investment, and instead foster an agile economy, capable of delivering growth and jobs. The letter, signed by Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds, asked regulators to submit new proposals to achieve that objective by mid January.
As one of the most regulated sectors in the UK, our members in the betting and gaming industry share the goals the PM and his top team expressed. We absolutely agree, collaboration with independent regulators can set the right conditions for growth.
Although no industry always agrees with everything their regulators do, we have a positive and constructive relationship with our own primary regulator, the Gambling Commission, who we work with regularly on joint endeavours to raise standards. But in the course of doing business in the UK, our members must engage with a plethora of additional regulatory bodies governing all aspects of their work.
We recognise the opportunity for change the PM seeks. Because as one of the nation’s few, genuine, global leaders, with the right conditions we are primed to help deliver the Government’s ambitious growth agenda. BGC members support 109,000 jobs nationwide, contribute £6.8bn to the economy, while generating £4bn in tax to support vital public services. They also provide the financial lifeblood to many of the sports we all love, from horseracing to football, darts, snooker, boxing and cricket.
Grainne Hurst, CEO | Betting And Gaming Council
We are in this enviable position, because regulated betting and gaming remains one of the most popular leisure pastimes in the country, with 22.5 million people – roughly half the adult population – enjoying a bet each month on the National Lottery, in casinos and bingo, online and on sports. Meanwhile, according to the latest NHS Health Survey for England, just 0.4 per cent of the adult population are problem gamblers, an issue our members have voluntarily donated tens of millions towards tackling via a mature, expert network of independent support and treatment charities.
Championed by the BGC, our members are ready to go further, to invest more, to deliver more jobs, to create more growth. But as the PM understands so clearly, red-tape too often constricts innovation and ambition. It’s something his own Government can assist on now.
Take casinos as an example. The White Paper on gambling reform in 2023, was welcomed for its balanced approach to regulation, including plans for the modest, but mission critical modernisation of land-based casinos. Casinos currently employ more than 10,000 people catering to over 13 million customer visits every year, while contributing over £300m annually in taxes and an estimated £800m a year to the UK economy.
But they are desperate for the much needed - and much delayed - reforms their customers expect, including cashless payments, improved gaming machine allocations and allowing all casinos to offer sports betting. The policy is set, the legislation already drafted, there is a consensus in favour of these proposals across the political divide. The Government just needs to get on with it. At a stoke of a pen it would unlock hundreds of millions of pounds in investment on high streets and city centres across the country.
Horseracing, a huge part of the history and heritage of this country, is facing a double digit decline in revenues, with many blaming affordability checks on customer spending as the irritant driving punters away. We have made great strides, alongside the Gambling Commission, to bring in a voluntary Code to ease this burden which increased the thresholds at which such checks need to be conducted.
But as we made clear at the time, this is only part of the solution. Working positively with the Gambling Commission we now need an Anti-Money Laundering Code delivered without further delay. If the sport’s current unnerving decline is to be arrested, we need to deliver that sister Code and give responsible punters the “frictionless” betting experience they rightly deserve.
The black market is another area which needs constant attention. A recent study by the BGC found 1.5m Brits stake up to £4.3bn on the growing, unsafe gambling black market each year. Researchers found these vast sums could deprive the Treasury of up to £335m over the course of a five-year Parliament.
The Gambling Commission is working hard in this area, with real impact, but we’ve been clear, balanced regulations and stable taxation is the best defence against the black market, because too much red tape degrades the punter experience, forcing them to look to the illegal market.
All of these issues can be solved with common sense, evidence led, balanced regulations. But common sense, and evidence, is something the anti-gambling brigade often find in short supply. Making unfounded, scaremongering claims, on everything from tax, problem gambling to advertising. The White Paper was right to ignore their endless calls for bans, because balance is key.
In 2025, we are ready to do our bit to support the Government’s growth agenda. We want the same things, to boost growth, jobs and investment. We look forward to working closely with our members, the new Government and our regulator so that we can continue providing a safe space for enjoyment for our millions of customers, while giving the economy the boost it so desperately needs.
Starmer and Reeves are right to go for growth - and to write to regulators. But the decisions made by their own government departments make a big difference too. They now need to ensure in the New Year that their own ministers get the memo as well.
PoliticsHome Newsletters
Get the inside track on what MPs and Peers are talking about. Sign up to The House's morning email for the latest insight and reaction from Parliamentarians, policy-makers and organisations.
