More than 420,000 British players lose at least £ 2,000 a year, according to a major report that warns that losses from the most addictive products are “heavily skewed” towards disadvantaged areas.
The report exposes the heavy losses suffered by the heaviest players and raises “concern” about the low level of intervention by gaming companies to prevent them from suffering damage.
Their findings sparked new calls for a government-wide review of gambling regulations to include affordability checks and betting limits on online slot machines, which allow gamblers to bet. large sums in a single “turn”.
Researchers at the National Center for Social Research (NatCen) and the University of Liverpool have raised particular concerns about online gambling, a £ 4bn a year category that includes bingo and online casino, but is dominated by for virtual slot machines.
An estimated 129,000 gaming customers lost at least £ 2,000 in a year, more than the average household gas and electricity tariff, according to an analysis of 140,000 accounts with seven betting companies.
In practice, the number of people suffering from these losses is likely to be much higher, as the data covers only 37.5% of the UK online gaming market.
Virtual slot machines were highlighted by special concern, with 50,000 people playing the equivalent of eight full days in a year, losing an average of £ 5,000. Although gambling is dominated by men in general, this group was more likely to include women.
Companies get 40% of the revenue from slot machines from just 1% of players, who lost an average of £ 10,491 each in games, which leads to disproportionately high addiction rates.
Losses on all types of online gaming were “heavily skewed” toward the most disadvantaged areas, according to the report, with 20% of the poorest regions providing 25% of the industry’s revenue.
Labor MP Carolyn Harris, who leads a multi-party group of MPs examining the damage of gambling, said: “The industry is filling its pockets with money from those who can afford it and the current crisis. It is even more vital that the government take the necessary measures to protect vulnerable people immediately. “
Zoë Osmond, executive director of GambleAware, which commissioned the report, warned that “gambling damage is falling disproportionately on the poorest communities,” and that the cost of living crisis could aggravate the trend.
Activists have called on the government to use its ongoing review to curb online slot machine betting, similar to the £ 2 limit imposed on fixed probability betting terminals (FOBTs) in 2019, among other measures such as now stricter restrictions on advertising. The £ 10bn industry has pushed for tighter regulation.
The report, conducted between 2018 and 2019, highlights the industry’s heavy reliance on a small group of heavy players. The top 10% of accounts, those betting more than £ 4,568 a year, contributed 79% of the operator’s income.
“That’s why online betting companies have been so resilient to accessibility controls,” said Matt Zarb-Cousin of the Clean Up Gambling campaign group.
“The government must impose limits on participation […] along with strict accessibility controls at a threshold that protects those most affected by the cost of living crisis. “
In sports betting, which is more popular but where average spending is lower, researchers estimated that 290,000 sports betting accounts lost more than £ 2,000 in one year. The activity was very biased towards men, who accounted for 94% of about £ 5 billion in annual revenue.
The researchers said they were “concerned” about the industry’s apparent lack of appetite to intervene when customers are losing large sums.
Among those who spent more, those who lost more than £ 2,000 a year, only a third received any kind of intervention, usually in the form of email, while less than 1% received a phone call. the most effective interaction.
A spokesman for the industry lobby, the Betting and Gaming Council, said: “In 2020, operators conducted about 5 million more secure gaming interactions following alerts from their diagnostic systems. .
“During the pandemic, members instigated an improved control system, to allow for greater interaction with customers, which are still in place today. Last year, deposit limits were set at about 5 million accounts.”