Bet365, Ladbrokes and W. Hill Not Going Along with GBGA’s Legal Action vs. UK Gambling Law

Last week, the Gibraltar Betting and Gaming Association (GBGA) launched its offensive against the British government’s soon to be imposed new gambling law, starting with a “letter before action” handed over to the offices of the Secretary of State for Culture, Media and Sport, the Attorney General, and the UK Gambling Commission. Although Bet365, Ladbrokes and William Hill are among the GBGA members that contributed to the £500,000 legal fighting fund, which the association set up last year mainly for such purpose, the three top UK bookmakers have issued statements of their decision to withdraw their support for the legal challenge.

William Hill was the first to issue a statement that the company has chosen not to challenge the British government, to which Bet365 and Ladbrokes followed suit by issuing their declaration of non-support in proceeding with the legal action.

William Hill’s announcement was more elaborate as it included a statement that the company remains concerned with the new law’s “distortive effects on the market and the inadequacy of enforcement mechanisms.” The corporate bookmaker also made an appeal to the British government “to strike the correct balance between overlapping regulation and enforcement by setting an appropriate tax rate which encourages full compliance without damaging businesses.”

Ladbrokes followed up with a rejoinder given to the iGaming news source of the eGR magazine, with which the bookmaker expressed concerns over the strength of the British government’s regulatory enforcement in managing the risks presented by the UK government’s relatively high task rate; because it gives competitive advantage to unregulated remote gambling operators.

William Hill and Ladbrokes’ concern over regulatory enforcement pertains to a provision, which according to the GBGA is one that establishes the UK Gambling Commission as the gambling industry’s regulator across the globe. The GBGA contends that the law “not only threatens the safety of online consumers but is also unlawful.” International law firm Olswang, which has taken up the cudgel in behalf of GBGA, claims that the new licensing regime established under the Act breaches Article 56 of the Treaty on the Functioning of the European Union (TFEU).

In a separate statement given this week by the Chairman of William Hill Plc Gareth Davis to the Financial Times, Davis warns about the amount of state intervention in Great Britain. The FT quoted the William Hill Chairman as saying, “If you look at the spread of industries…and the focus on governance issues, particularly the remuneration issue…I’d have to conclude that in my 40 years of working life this is the most intervention I’ve seen”…“Most foreign observers would find that staggering, but we are where we are.”

Of the 22 members listed in GBGA’s roster, the remaining 19 Gibraltar-licensed operators, namely: 32Red, 888 Holdings, BetClic, Betfair, Betfred, Bwin.Party, Digibet, Gala Coral, Gamesys, IGT, Lottoland, Mansion, Nektan, Ongame, Probability, Stan James, Spielo, Tombola and Victor Chandler, have not issued statements contrary to GBGA’s ongoing action against the new gambling law; denoting therefore that their support remains intact.