If the industry does not take steps to ensure safeguards for players, the cost of living crisis can exacerbate the harm of gambling. Ultimately, this may require new thinking when it comes to means such as affordable checks.
In April, UK inflation reached its highest level in 40 years, with the cost of living and the cost of food, housing and basic equipment skyrocketing.
One of the most worrisome conversations is focused on the vulnerable people who are most likely to feel the effects of the crisis: those with low disposable income.
The cost of living crisis can be devastating for vulnerable groups that are vulnerable to gambling.
Charles Cohen, CEO of Affordable Solution Provider Department of Trust (DoTrust), says how these factors combine to create the perfect storm for risky and problematic gamblers. I will outline about.
“The real danger of a living cost crisis is the rate at which it happened and the uncertainty it created in the short term,” Cohen explains. “That is, basically, you can’t plan your finances as confidently as you used to, because you know how much it will cost to travel to bread and pubs when prices are stable. Probably the week and month before you go. “
This uncertainty can be catastrophic. Cohen emphasizes how the unpredictability caused by the crisis can be crippled for those who are already struggling to quantify gambling spending.
“If the problem of inflation is unpredictable, or if you don’t even know what your gas and electricity bills will be, how can you plan something?”
“”[The cost of living crisis] Everyone is in a state of turmoil and uncertainty, especially for those who are already low in ability, awareness and awareness of where gambling spending fits into overall economic life. “
In April, monthly inflation reached 9% and Gamble Aware announced six new principles (see above). This shows that the gambling sector is making small efforts to mitigate the crisis as much as possible.
These include a mandatory 1% tax requirement on total gambling yield (GGY) as a license condition, targeted support for the prevention and treatment of gambling harm, and inequality in the UK’s most risky communities. Includes the provision of assistance by reducing.
These were published primarily in response to the cost of living crisis, but many measures could have been published at any time.
“Gamble Aware has long called for mandatory taxation, but now we need urgent action due to rising living costs, growing regional inequality and the ongoing impact of the pandemic. These six principles define how we intend to tackle these issues, “the charity told iGB.
Gamble Aware’s Six Principles for Mitigating the Cost of Living Crisis
- Helping those at greatest risk by reducing inequality
- 1% tax required as a license condition
- Recognize prevention and support to reach all communities
- Targeted innovation-driven support
- Alliance of expertise
- Investors Must Drive Change
Closed fist
Many would argue that the UK government is responsible for mitigating the crisis. In May, Prime Minister Rishi Sunak announced a £ 15 billion government support package. This includes a £ 650 lump sum to over 8 million low-income households receiving Universal Credit and a £ 400 discount on energy bills in October.
In the 2005 review of the gambling law, no industry-specific measures can be found. However, GambleAware argues that the government needs to be aware of the impact of the crisis on those suffering from gambling harm.
“Government needs to take necessary and responsible steps to address the growing financial and economic challenges of the country as a whole by securing sufficient funds and resources to address and prevent gambling harm. There are, “says the charity.
Gamble Aware’s plea for a mandatory 1% tax on GGY will step up funding for the treatment of gambling harm caused by the collapse of the crisis.
“Gamble Aware is obliged to provide total gambling yields to provide the long-awaited stability and financial independence so that those at highest risk of experiencing gambling harm have access to the help and support they need. It is consistent with our call to introduce taxation. “
Cohen believes that more direct communication between governments and regulators should be the way forward, especially in the area of affordability.
The discussion of affordable checks is becoming an increasingly difficult issue. The Betting and Gaming Council (BGC), an industry standards body, has repeatedly warned that comprehensive checks only harm efforts to protect players.
We’ve commissioned YouGov to vote, and 58% of Panthers don’t want authorized betting or game operators to do what the BGC calls “any blanket check.”
In a second warning about affordable checks around the same time as the Grand National, CEO Michael Dugher claimed that 95% of Panthers wouldn’t share bank details for betting.
However, Cohen argues that affordable checking can be an effective tool if there is a plan clearly defined by the government and the gambling committee.
“Apart from dealing with inflation itself, from a gambling industry perspective, the government really has only one thing to do: the requirements that regulators have regarding affordable checks from gambling operators. It’s about clarifying expectations, “he explains.
“The worst thing the government can do right now is to mitigate this. Have everyone do a free credit check and look at the post-Covid level marketing database. That would be absolutely insane. “
For businesses, the cost of living crisis presents a tricky balance when the future of the industry is the subject of intense debate. GambleAware sees more secure gambling information as the best route to tackle the harm of gambling, especially from a crisis.
“The gambling industry needs to ensure that messages that promote safer gambling are frequently displayed and shared with customers online and at venues,” he explains. “The industry has a social responsibility to view gambling as a public health issue, as well as other harm-causing sectors, including prevention and treatment.”
Cohen emphasizes how operators can identify gambling harm during and after the crisis. Some of them are involved in modern technology. This is not a single solution, but a package of countermeasures.
“There is no silver bullet for this,” he says. “At one end of the spectrum, there are companies that can analyze betting patterns and find outliers (people with potential gambling addictions). By automating that process, you can’t do it otherwise. Very effective in emphasizing people. Spot. “
Of all the new technologies offered, he sees open banking as the particular healthiest method of gambling harm, as opposed to standard methods such as credit checks.
“There are open banking-based solutions, and ultimately open banking is the answer,” Cohen continues. “This is the only way to access the actual data in people’s bank accounts in a secure, convenient and cost-effective way.”
“”[I’ve] I’ve talked to many operators who have used it, and everyone agrees that it’s better than a bank statement. I think it makes a big difference if people can find a way to share data. That is the direction of travel in the industry for me. “
Watching
As Cohen says, there is no silver bullet to mitigate the effects of the living cost crisis. However, there are steps the industry can take. And the starting point that both Gamble Aware and Cohen agree on is education.
GambleAware has been successful in its hazard prevention efforts across the UK. The Gambling Harm Education Hub, where children learn about gambling risks, has recently expanded from Scotland to England and Wales. Optimistically, 84% of young people working in Scottish education hubs reported feeling aware of the consequences of gambling harm.
“It’s important not to consider gambling as a way to make money during difficult times, so education and awareness are essential tools to prevent gambling-related harm,” says Gamble Aware. ..
“We promote community-driven preventive services tailored to local needs, effectively reach communities to deliver critical preventive messages, and prevent gambling-related harm before it begins. I am aiming for that. “
Similarly, Cohen supports financial literacy as an important early step in preventing harm.
“For all of us, we all need financial and medical tools,” he says. “There are already many on the market.
“There is a long-term story about teaching financial literacy and helping people manage their budgets and things, but in the short term, the best thing is awareness and information.”
The cost of living crisis can exacerbate the harm of gambling when the future of the industry is at stake and its reputation is undermined. However, there are steps you can take. These may not help shake public opinion in the short term, but they may provide players with an important safety net when they need it most.
