## More Double Standards – Lottery – iGB
One of the biggest gripes about the gaming industry is that it focuses on people who lack financial resources. We’re constantly told that the worst culprits are the UK’s retail betting firms, says Jon Brough.
**More Double Standards**
Any business aims to reach the maximum number of patrons. I’m not suggesting this is good or bad, it’s simply how things work. You’ll also find more unlicensed establishments with low rent, more fast food eateries and more charity shops in these areas, and fewer upscale grocery stores. Wealthier areas have more upscale grocery stores, fewer betting shops… that’s just the way it is.
But somehow, the National Lottery has never been part of this debate.
This is the perfect illustration of how gambling is accepted as normal. Their initial ads were all about: “Transform your dreadful life, win the lottery!” They’re still permitted to advertise in The Guardian, so you know it’s completely acceptable with the middle class and above.
Why am I concentrating on the lottery? Because the rules aren’t equitable, and recent news indicates they won’t be becoming fairer anytime soon.
**The National Lottery Exception**
The government recently stated they’re considering a new gambling levy that everyone has to pay. This levy is intended to generate more funds for research, education, and treatment for individuals who have issues with gambling.
The Minister of Culture, Lucy Frazer, declared: “We are taking the next step in safeguarding those most vulnerable to gambling-related harm by implementing a new levy on gambling enterprises to fund treatment and research.
“Every gambling business will be obligated to contribute their fair share. This period of consultation provides the industry, medical professionals, individuals who have suffered from gambling-related harm, and the general public an opportunity to express their views on the proposed gambling company tax.
“The introduction of this tax will bolster the safety net and aid in the realization of our long-term objectives to foster stronger communities, while enabling millions to continue engaging in gambling within a secure environment.”
Naturally, what she stated and her true intentions are not identical. “All gambling companies will be required to pay their fair share,” with the exception of the National Lottery. For reasons unknown, it is neither classified nor treated as a gambling enterprise, despite being the largest gambling company by a considerable margin. Of course, allocating funds to worthy causes is commendable – it alleviates the pressure on the government to find solutions to ease the strain on living expenses. So everyone benefits, correct? Not entirely.
Because the lottery is not solely about lottery draws. Retailers also sell scratch cards, which present a completely different scenario.
The issue with this type of wagering is… where to even start? In the Journal of Gambling Issues, Dr. Mark Griffiths, a prominent professor of behavioral addiction at Nottingham Trent University, highlights that scratch cards are a “difficult” form of gambling.
Professor Griffiths argues that this “difficult” classification puts them on par with roulette and blackjack, not the casual, harmless entertainment we might be led to believe.
The Widespread Use of Scratch Cards
Despite the many supplementary games, the lottery itself is certainly soft gambling – the low event frequency ensures this. Even the supplementary games in the UK adhere to this principle.
But what about scratch cards? They are often designed to imitate slot machines or similar devices, which feature “the potential to induce excessive betting, regardless of the gambler’s personality, environment, or genetic makeup. These features include the ability to produce a psychological reward experience in the face of financial loss – particularly the psychology of near misses,” says Professor Griffiths.
So what’s the big deal? It’s a combination of acceptance and sales outlets. There are over 6,000 retail betting firms in the UK; roughly one betting firm per 10,000 people. Yes, I know, they are not distributed evenly by population/proportion. This is just to illustrate the concept.
The National Lottery has over 43,000 sales locations, all of which sell scratch cards.
The lottery operator, Camelot, boasted that a vast majority of the UK population resides or works within a short distance of a lottery outlet.
I attempted to obtain a detailed breakdown of their figures, categorized by demographics and geographical location, but predictably, this request was met with silence. They explained that releasing more specific, commercially sensitive sales data would empower competitors to target particular regions of the UK for their own commercial gain, which would negatively impact Camelot’s overarching objective of maximizing returns for charitable causes.
Or, as I prefer to articulate it, it would be detrimental to Camelot’s sales of lottery tickets.
The primary objective of any gambling operator is financial gain, and anyone who asserts otherwise is speaking utter nonsense. The charitable aspect serves as a means for lottery operators to circumvent the stringent regulations that the rest of us are obligated to adhere to.
Safeguarding Minors
The refusal to disclose this information also circumvents scrutiny of the proliferation of sales points in specific areas. I am willing to wager that the distribution of these points would mirror the density of retail gambling companies, and be disproportionately higher than them.
Camelot did highlight their efforts to ensure retailers comply with legal requirements, prohibiting sales to minors and mandating identification verification, which is commendable.
A representative communicated with me electronically, stating: “Although the National Lottery games are significantly distinct from other forms of entertainment offered by the betting sector, we and our retail partners must persistently strive to hinder underage and excessive participation.
“For instance, in the fiscal year 2022-23, we executed over 11,600 inspections of retail outlets as part of ‘Operation 18’ – which utilizes individuals over 18 years of age who appear younger – to guarantee that retailers are not unintentionally violating the law during test visits. If a retailer fails three undercover shopping visits, their National Lottery terminal will be suspended, and might even be permanently removed.
“I am delighted to announce that a record-breaking 92% of National Lottery retailers accurately requested identification on their initial visit during the 2022-23 ‘Operation 18’ mystery shopper program – showcasing their unwavering dedication to selling National Lottery games responsibly. This exceptional performance is particularly noteworthy considering the National Lottery’s minimum age for participation was only adjusted from 16 to 18 in the year 2021.”
Potential Adverse Effects
The representative continued: “As part of our dedication to promoting healthy gaming practices, we have a diverse array of training programs. For instance, in the fiscal year 2022-23, our retail team established over 160,000 connections with National Lottery retailers – through telephone calls, in-person visits, and electronic messages – providing guidance on preventing underage participation and the most effective methods to support healthy gaming within their establishments.
The National Lottery asserts that their games are distinct from other gambling offerings. They tout their “Healthy Gambling” initiative, which involves over 4,000 additional store visits to educate vendors about potential indicators of problematic gambling. They also train retailers to recognize “unhealthy” conduct.
Nevertheless, experts contend that scratchcards, a popular National Lottery offering, can easily become habit-forming. They highlight that scratchcards are inexpensive, readily accessible, and require no expertise, making them particularly susceptible to repetitive use.
The National Lottery maintains that their robust safety measures minimize the risk of problematic gambling. However, critics maintain that incorporating the National Lottery into the RET tax would provide a more realistic evaluation of the potential for problematic gambling associated with their products.
Although I don’t believe there are individuals specifically researching scratch-off lottery tickets, given the nature of retail and the participants, I don’t think it’s feasible to monitor high-risk behavior in this kind of game.
However, what surprised me most was the Gambling and Gaming Commission’s complete agreement with my viewpoint. Following the RET consultation announcement, they stated: “We believe [taxes] should be applied to all operators, including the national lottery, without impacting charitable causes, who are not immune from the effects of problem gamblers using their products (like scratch-offs and instant win games).”
Envision if their extensive sales network were all involved, and all game types were taxed, if the national lottery were included in the RET tax, a much greater positive impact could be achieved.
As I always emphasize, if it’s a problem, it should be addressed as a problem. Don’t be selective just because you favor something.
Jon Bruford has been working in the gaming industry for over 17 years, serving as Executive Editor of International Casino magazine and now as Publishing Director of Gaming Boardroom, collaborating with Kate Chambers and Greg Saint. He owns a large dog with a sensitive stomach, and he spends his leisure time learning how to eliminate stains.
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