Published: 17.04.2020, 15:20
2 min read
The UK Gambling Commission (UKGC) has announced its decision to cut its staff, much to the surprise of campaigners. The Commission currently has 332 full-time employees, and the staff has been notified of the decision to downsize. The UKGC has declined to give a public statement regarding the staff layoffs, and no numbers have been confirmed yet. However, an anonymous source has stated that this is due to strains on the Commission’s budget.
The National Audit Office (NAO) published a report on the UKGC’s £19 million annual budget in February and found that the Commission’s finances are straining and that the organization has not adjusted to the rise of online gaming. The NAO continued on to say that the Commission’s ability to protect consumers is sorely restricted by inflexible funding, a lack of evidence that shows how the online gambling industry affects players, and additional factors that are outside of the Commission’s control.
This budget strain could also be the reason why the UKGC has been issuing severe fines to operators that have been breaking its “social responsibility” code of conduct. Two fines have been given in the last month that add up to £25 million in total. Some experts in the field are upset by the fact that the UKGC is bringing in plenty of money via fines yet still choosing to lay off employees.
Some financial analysts believe that the UKGC is cutting staff in order to garner the funds needed to continue essential activities. However, some Members of Parliament (MP) believe that the UKGC will not be able to improve its performance while also reducing its workforce. For instance, UK Labour MP Carolyn Harris has stated that the UKGC has had “abysmal” defenses against gambling-related harm. Harris is stunned that the Commission is choosing to lay off staff rather than focusing on expanding its services. She believes that the UKGC will have to work harder to justify its existence. Harris continued on to say that if the Commission follows through on its plan to downsize, it is essentially just giving up and should be declared unfit to remain in operation.
Iain Duncan Smith, who is a vice-chair of an MP gambling group, has said that it is essential for the government to do a complete overhaul of the UKGC.
Matt Gaskell, an industry consultant, has echoed Smith’s sentiments and said that the UK’s government needs to step in and strengthen the UKGC’s regulatory framework.
A spokesperson for the Commission has stated that the organization needs to try out new methods in order to remain efficient and responsive as gambling developments arise. The UKGC is going to publish its updated business plan soon, but a date has not yet been set.
