Could the Gambling Act Be Scrapped By New Independent Commission?

Today saw the launch of a new independent industry commission, whose first task is to assess the relevance and scope of the Gambling Act (2005) in the digital age.

The Gambling Policy Commission, which will be headed by University of Cambridge economics professor Jagjit Chaha OBE, has been tasked with providing an ‘evidence-based review’ of current industry legislation.

And the group will be handed powers to call for the Gambling Act to be comprehensively revised, or even scrapped entirely, as the sector moves towards an increasingly challenging technological environment.

Outdated Legislation

When the Gambling Act was first devised, betting on computers, smartphones and tablet devices was still very much in its infancy.

But as the world has changed, the regulation has stayed much the same – leading some to question the fitness for purpose of a body of legislation enshrined in law more than two decades ago.

And that will be the main focus of the Gambling Policy Commission, who will now have the responsibility of determining the future direction of industry laws.

They have already called for evidence-based responses from a number of different groups and stakeholders, including key personnel at licensed operators, consumers, researchers and current policy makers.

Prediction Markets Under the Microscope

The new commission won’t rush into making any decision; it has been suggested that their report and its relevant findings won’t be published until 2028.

But it’s likely that the gambling industry will experience a radical overhaul of its legislative landscape, with a particular focus on contemporary issues like cryptocurrency use, AI, social media advertising and even the emergence of prediction markets as a genuine alternative to traditional licensed bookmakers.

Those prediction markets will be a particular focus. The likes of Polymarket and Kalshi are reportedly considering expansion into the UK and Europe, having enjoyed remarkable success in the United States – their simple ‘yes and no’ questions attracting a new audience of casual punters and effectively ‘stealing’ customers from established sportsbooks.

They want to be regulated as financial services providers, whereas their product is, in essence, gambling just under a different name. The Gambling Policy Commission is tasked with getting this important distinction right… and deciding, in law, how prediction markets will be treated in the UK; if indeed they are allowed to open their digital doors on British soil at all.

Tax Review

The new commission will also be asked to review some of the most seismic changes that the industry has faced in recent years.

Those include the findings of the former government’s gambling industry White Paper, which was finally published in 2023 after much delay. A series of policies, including the general ideas of financial risk checks, have since been written into law – much to the chagrin of operators.

The Gambling Policy Commission will also be handed the power to review the current tax regime faced by betting sites. Not that they’ll be able to determine rates, but instead how the money raised is used as an economic contribution and in collaboration with the statutory levy, which is in place to help fund problem gambling treatment and research.

What Is the Gambling Policy Commission?

Made up of experts from the fields of law, economics, sport and governance, the Gambling Policy Commission will use the evidence gathered from ‘all interested parties and individuals’ before considering ‘whether further reform, including potential new primary legislation, may be required.’

That call for evidence will run until February 2027, before the commission will collate the findings and make their recommendations – expected in the summer of 2028 – based upon their own in-house expertise.

In the short term, it’s unlikely that industry legislation will change all that much… leaving crypto gambling and prediction markets as the elephants in the room.