UK Lawmakers Relaunch 2025 Gambling Inquiry as Reform Stalls

Regulatory ‘MOT’ for a Digital Era

Launched on July 17 by the All-Party Parliamentary Group (APPG) on Gambling-Related Harm, the inquiry aims to evaluate whether the UK’s regulatory framework remains fit for purpose. Led by senior Conservative MP Sir Iain Duncan Smith, the investigation reflects mounting concern that existing laws are falling behind a rapidly evolving industry.

“The White Paper was a step in the right direction, but more must be done to protect people in the digital age,” said Duncan Smith, warning that the system born under the 2005 Gambling Act is ill-equipped to tackle current realities.

At the heart of the 2025 inquiry lies one critical question: can legacy promises keep pace with emerging risks—or have those risks already rewritten the rules?

Key Issues Under Review

The APPG will assess progress on key reforms outlined in the 2023 Gambling White Paper and identify critical implementation gaps, including:

• Statutory levy: Enacted in April 2025, the levy is expected to raise over £100 million annually for research, harm prevention, and treatment. The Office for Health Improvement and Disparities now oversees £30 million in nationwide campaigns—aimed at genuine impact, not box-ticking.
• Affordability checks: Pilots are underway, but full implementation remains pending. The concept of what constitutes “affordable gambling” remains loosely defined.
• Gambling ombudsman: Promised in 2023 but still not operational.
• Land-based reform: Proposals to modernize casinos and arcades remain under review.
• Advertising and sponsorship: Controversy lingers over the Premier League’s voluntary ban on front-of-shirt gambling sponsors.

The group will also evaluate the performance of the Gambling Commission. Duncan Smith described the regulator as “toothless,” noting repeat violations by operators without meaningful sanctions.

Enforcement Under the Microscope

Regulatory enforcement is a key flashpoint. Since January 2022, the Gambling Commission has concluded over 30 major enforcement actions, with total fines exceeding £100 million (€118 million).

The largest penalty came in March 2023, when William Hill entities were fined £19.2 million (€22.6 million) for AML and social responsibility failures. Other notable cases include:

• £6 million (€7 million) fine for Gamesys (January 2024)
• £686,070 (€808,000) penalty for Corbett Bookmakers (March 2025)

Critics argue these fines have little deterrent effect. Major brands remain operational, and penalties are seen as the cost of doing business. The APPG will assess whether the Commission needs expanded powers or parliamentary intervention to enforce compliance.

Some MPs have called for regulatory control to shift from the Department for Culture, Media & Sport to the Department of Health and Social Care, framing gambling harm as a public health issue.

Outdated Laws for Emerging Threats

The 2005 Gambling Act was written for a world of betting shops and fixed-odds terminals. Today’s risks are digital, fast-moving, and often beyond traditional regulatory reach.

Key concerns include:

• Online slots and live casinos dominate GGY, blending rapid gameplay with high addiction potential.
• Game mechanics and microtransactions now use gamification to increase user time and emotional investment.
• Unlicensed crypto casinos and decentralized Web3 platforms offer anonymity, instant withdrawals, and high-risk wagers—all outside UK jurisdiction.

The inquiry will explore how future regulation can address these blind spots, especially around emerging technologies, cross-border services, and consumer protections.

Submissions are open to the public until 5:00 p.m. on Friday, September 12, 2025, via email: [email protected]. Parliamentary hearings will follow.

Global Comparisons: What Are Other Countries Doing?

To benchmark regulatory reform, the APPG will also examine models from across Europe:

Sweden

• Restricts aggressive advertising
• Bans offshore license holders
• Requires region-specific marketing compliance

Italy

• Implements the PIAO 2025–27 strategic roadmap
• Increases audit frequency and AML controls
• Strengthens real-time reporting obligations

UK (in progress)

• Implements statutory levy
• Pilots affordability checks
• Plans gambling ombudsman
• Raises compliance costs while aiming to clarify safer gambling duties

While all three seek to reduce gambling harm, the UK approach relies more on industry-funded solutions, aiming to balance consumer protection with commercial viability.

Market Impact and Structural Shift

Analysts expect continued regulatory pressure to accelerate market consolidation, with smaller operators struggling to absorb new compliance burdens. The statutory levy alone replaces voluntary donations of £1 per year with scaled mandatory contributions.