Gambling industry representatives have once again appeared at the top of The Sunday Times’ Tax List. The 2024 edition of the list shows that the owners of Betfred and bet365 occupy two of the five top spots.

Outclassing celebrities such as Harry Potter author J.K. Rowling (31st place) and singer Ed Sheeran (32nd place), Fred and Peter Done and the Coates family stood in fourth and third place respectively.

According to the list, the Done brothers paid £204.6 million ($259.4 million) in taxes to the UK government. The Coates, meanwhile, paid almost two times that, with their contributions standing at £375.9 million ($476.5 million). In total, the two gambling families contributed £580.5 million.

This is not the first time the Coates have appeared at the top of the list of Britain’s highest-paying taxpayers. Denise Coates, for example, was singlehandedly the highest taxpayer in 2019 when she paid £276 million in taxes to the government. She was also the highest taxpayer in 2021, despite a significant pay cut that year.

For reference, bet365 was the second biggest taxpayer in the UK last year and was only outclassed by the Moscow-born billionaire Alex Gerko.

Russian-Born Billionaire and F1’s Ex-Boss Took the Top Spots

The Coates family no longer holds the top spot, although the company continues to see its profits increase. Unfortunately, bet365’s success is offset by some significant operating losses that were attributed to higher spending.

Betfred, on the other hand, has not yet disclosed its FY 2023 financials, although its presence on the list suggests growth. This is further supported by its launch in new jurisdictions and the introduction of a new Mohegan Sun sportsbook in Las Vegas.

Despite the gambling families’ significant contributions, Bernie Ecclestone, the former chief executive officer of the Formula One Group, and Alex Gerko, the owner of the algorithmic trading company XTX Markets took the first two spots. Ecclestone, who was recently involved in legal trouble, had to pay £652.6 million ($827.3 million) in taxes. Gerko, on the other hand, paid £664.5 million ($842.4 million) in UK tax, which earned him the top spot on The Sunday Times’ list.

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According to the UK’s Financial Conduct Authority’s (FCA) chief executive, Nikhil Rathi, “further work” was needed to be absolutely sure that no bank, payment company, or building has closed down someone’s bank account primarily because of their political views. 

Primary Findings Flesh out the Case

The conduct regulator of close to 50,000 companies aimed at ensuring all financial markets are “honest, competitive, and fair” has completed its initial data exercise on bank account access and closure based on information collected “at speed” between July 2022 and June 2023.

The most common arguments bank service providers offered for shutting down, suspending, or declining accounts were account inactivity/sleeping accounts and concerns related to financial crimes.

The initial probe was launched as a response to a scandal revolving around controversial politician Nigel Farage who had his bank account shut down by Coutts, a reputable banking company that provides private banking and wealth management services.

The watchdog concluded more work was needed to assess the information and effectively address the current gaps shown in the data. An international perspective on the closure of bank accounts has also been published by the same institution.

Over the years, certain UK banks have been known to close the accounts of clients who were involved in gambling activities, as a result of the associated anti-money laundering risks and obligations that were perceived as being higher.

What the FCA Will Focus On Next

According to an open letter written as a response to the Gamblers Consumer Forum’s query on individuals and businesses who have lost access to their bank account because of gambling transactions or ties to the gambling industry, the financial watchdog implied its further investigation would include this topic as well. 

Additionally, the follow-up of their initial review would also be aimed at making sure that all the data that has been reported to them has been accurate, with special emphasis on outlier firms.

More supervisory work would also be needed to check companies’ conclusions on those accounts that they have closed based on certain political views. More assessments of accounts closed for reputational risk-connected arguments would also be necessary, as announced by the FCA.

The watchdog would also look into standard bank account applications and terminations that had been declined, as well as the reasons why 1.1 million in the UK were currently “unbanked”, along with studying the main characteristics of the said population.

Chief executive Rathi further commented that a critical question for policymakers was whether all “individuals, businesses, and organizations” should benefit from the right to own a bank account, similar to other countries. 

Finally, the follow-up would also aim to engage with consumer groups and organizations and get a deeper understanding of their own experiences and of the impact of having their bank account terminated, declined, or suspended. 

In April 2022, the FCA seized £2 million ($2.60 million) from QPay Europe because of the money being connected to a $150 million bank fraud that unfolded in the US.

At the start of 2023, the financial watchdog gave Trustly, an international payment platform for digital account-to-account transactions, the green light to acquire Ecospend, a UK-based open banking platform for payments. 

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The UK Committee of Advertising Practice (CAP) Code and the British Code of Advertising Practice (BCAP) unveiled technical updates to their rules on lotteries advertising. The two bodies noted that the changes will not have an impact on advertising policy and practice and are instead intended to make the rules clearer for Code users.

In 2020, the two bodies introduced changes to the policies, allowing for lotteries to support good causes benefitting children. At the same time, the changes allowed people who are or seem to be under 25 to be included in promotional materials if that helps to illustrate the good causes.

As noted by the two bodies, it is unreasonable to prohibit lotteries from depicting beneficiaries of their good cause initiatives.

The Wording Was Not Clear Enough

However, a recent ASA casework discovered some vague wording that might cause the Codes to be wrongly interpreted. A number of rules that were supposed to apply to both people who are under 25 and people who seem to be under 25 were not properly worded. As a result, only the first of the rules stated that in full. Subsequent rules refer only to under-25s, which might cause confusion about the inclusion of people who appear to be under 25 in ads.

To make sure that everything is absolutely clear, the CAP and BCAP revised the wording for example, rule 17.15 which used to state “Marketing communications for lotteries must not feature anyone who is, or seems to be, under 25 years old (under-25s) participating in gambling” has been changed to instead read “Marketing communications for lotteries must not feature anyone who is, or seems to be, under 25 years old participating in gambling.”

The full list of changes is available on the official website of the UK’s Advertising Standards Authority.

The ASA noted that CAP and BCAP’s rules and guidance are reviewed periodically just so they are clear for Code users. In addition to the technical updates, the two bodies also introduced amendments to the accompanying guidance, improving clarity. A marked-up version of the document is also available on the ASA’s website.

In other news, the ASA just opened fire against Ladbrokes, which allegedly violated the authority’s rules on gambling advertising. According to the regulator, the operator had posted Tweets that might have appealed to young people. The new probe came just after the authority slammed an ad featuring Jake Paul as “irresponsible.”

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After much delay and anticipation, the White Paper of the Gambling Act review in the UK was published late last month. The White Paper proposes significant changes to the gambling market in the country, ensuring that its laws are fit for the digital age. Essentially, it calls to build upon the Gambling Act 2005 but seeks to ensure the protection of users and implement strategic guidelines and restrictions for online gambling operators.

Now, in light of the upcoming changes to the market in the UK, researchers suggest that other markets may be impacted as well. Professor Sally Gainsbury of the University of Sydney and director of the Gambling Treatment and Research Clinic explained that the whole world sees that the market in the UK will change.

Similar to the UK, Australia is also seeking to improve its regulations related to gambling. According to the professor, the changes in the UK can have an impact on the future of the gambling market in Australia. Gainsbury did not explain to what extent the changes can impact the Australian market, but further discussion on the topic is expected later this week. It is likely that Australia can implement similar changes to the ones proposed in the UK, yet, it all remains in the hands of lawmakers.

“There are a lot of people around the world watching what happens in the UK. Australian gambling regulation is currently being reviewed and the changes in the UK are likely to impact future Australian gambling reforms.“

Professor Sally Gainsbury

Discussions on the Topic Continue

Recently, Professor Gainsbury along with Assistant Professor Kahlil Philander from Washington State University discussed the topic in a webinar with Tim Miller, UK Gambling Commission’s executive director for research and policy, as well as its director, Ben Haden. At the time, Haden noted: “We are going through a testing phase to move to a new methodology for what we’ll call the Gambling Survey for Great Britain.” According to him, this data will help the country better understand consumer behavior and gambling harm.

Miller added that the White Paper suggests many changes to the regulated gambling market in the country. He explained that while the specific changes seek to match the market in the UK and consider the views of consumers and stakeholders, they may be applied to other jurisdictions as well.

Discussions on the topic are set to continue this Thursday. Gainsbury, Philander, as well as Miller and Haden, are set to speak once again on the topic this week. They will discuss different aspects of the proposed changes within the White Paper and how evidence can help in the process that seeks to overhaul the gambling market.

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After the long-awaited Gambling Act white paper finally saw the light of day, many doctors, campaigners, and politicians quickly shared their disappointment in the proposed measures, calling for additional restrictions. Although the government has given itself a one-year grace period to iron out the final details, significant changes are unlikely.

The Paper Does a Lot of Things Right

After years of delays, the United Kingdom’s Gambling Act white paper is finally out. The document is a definite improvement over the current regulations, offering substantial improvements in troubled areas. Such changes could not come too soon, as rising problem gambling rates magnify the country’s cost of living crisis, threatening its most vulnerable groups.

Overall, all of the White Paper’s proposed updates seem sound. Operators will have to set aside a portion of their profits to fund gambling harm treatment and prevention, additional resources for the Gambling Commission, and introducing a gambling ombudsman seem like fair ideas. Online gambling, in particular, has received significant attention as iGaming operators face significantly improved player protection guidelines.

Critics Urge for Harsher Measures and Faster Progress

Despite the positive changes, many feel the document does not do enough. One of the primary criticisms of anti-gambling advocates is the lack of substantial advertising reforms. While the government denied any proven connection between advertising and gambling addiction, many charities and organizations do not share the same sentiment.

Association of Directors of Public Health VP Greg Fell warned that constantly exposing children to harmful gambling products could have severe long-term consequences. Charity Gambling with Lives shared his viewpoint, stating that a total ban on gambling advertising was the only meaningful way to reduce gambling-related deaths.

“We now need to push… for an end to all gambling advertising… and… do more to make the most dangerous products safer, further reducing stake sizes and play speeds.”

Charles Ritchie, Gambling with Lives co-founder

Aside from gaming advertisements, the UK government’s generous one-year timeline was another substantial point of contention. Many campaigners, public health specialists, and MPs see it as another delay for an already long overdue reform. Consultant psychologist Dr. Matt Gaskell, head of NHS Northern Gambling Service, warned that people would continue suffering without swift and immediate action.

While the white paper proved popular in Parliament, some MPs have urged the government to act with haste and push up the implementation date. The current timeline should allow the Gambling Commission and the DCMS to review the measures and refine any rough edges. However, shadow culture secretary Lucy Powell noted that given enough political will, the legislation could become law much sooner.

“There’s no reason we can’t get all this done by the Summer recess.”

 Lucy Powell, UK shadow culture secretary

Despite criticisms, the government is unlikely to introduce any significant changes. The white paper is the product of years of work and is long overdue. With rising political pressure to hasten its adoption, risking delays for a potential rework is not really an option. Although the document could have done more, it still marks a substantial improvement over current regulations. As to its effectiveness, only time will tell if the critics had a point.

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