How Betfred makes millions treating gambling addicts
Company owners also run firm that provides treatment for those hooked on betting
The gambling industry is back under the spotlight after it was revealed that the bookmaker Betfred’s owners make millions from a company that treats gambling addicts.
Following the news, the shadow health secretary, Jon Ashworth, said the fact the company is simultaneously cashing in from betting and gambling addiction treatment is an “unacceptable conflict of interest”.
What is the connection?
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The owners of Betfred are the billionaires Fred and Peter Done. The Guardian has revealed that pair also own Health Assured.
That company’s clients include multiple NHS trusts that treat gambling addicts from the public sector. Health Assured’s website states that the NHS staff can access counselling for issues such as “reckless behaviour”, including excessive drinking or gambling.
The Dones have taken £5.2m in dividends from Health Assured in the past three years. They are also both Tory donors, handing £375,000 to the Conservative party since 2016.
What has the reaction been?
The mental health chief of the NHS, Claire Murdoch, has written to the Gambling Commission to say the health service should not be left to pick up the pieces from gambling firms’ tactics to retain customers with addiction issues.
A government spokesperson said any public authority awarding a contract “should also carry out its own thorough due diligence, including looking for conflicts of interest.”
Health Assured said: “All public sector contracts we have been awarded have thorough due diligence carried out before are they issued, including looking for conflicts of interest.”
Has Betfred been criticised in the past?
One of the UK’s largest bookmakers, Betfred, has previously been criticised for its attitude to problem gambling and towards staff.
Last year, the gambling regulator weighed in after it introduced games that mimicked fixed-odds betting terminals (FOBTs).
Betfred, which had revenues of £728m last year, was accused of cheating on new rules after high-stakes roulette-style games were launched on the same day as restrictions on curbing fixed-odds betting terminals came into force.
The Guardian says the move was seen as “an attempt to bypass a crackdown on the much-criticised machines”.
–––––––––––––––––––––––––––––––For a round-up of the most important business stories and tips for the week’s best shares - try The Week magazine. Start your trial subscription today –––––––––––––––––––––––––––––––
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Life in the post-truth era
Opinion The mainstream media can't hold back a tsunami of misinformation
By Theunis Bates Published
-
Magazine printables - November 8, 2024
Puzzles and Quizzes Issue - November 8, 2024
By The Week US Published
-
Magazine solutions - November 8, 2024
Puzzles and Quizzes Issue - November 8, 2024
By The Week US Published
-
Five key takeaways from Jeremy Hunt's Autumn Statement
The Explainer Benefits rise with higher inflation figure, pension triple lock maintained and National Insurance cut
By Harriet Marsden, The Week UK Published
-
Withdrawing benefits: 'war on work shy' or 'matter of fairness'?
Talking Point Jeremy Hunt to boost minimum wage while cracking down on claimants who refuse to look for work
By The Week Staff Published
-
Tory leadership election: why tax cuts are an economic gamble
feature The candidates regard tax cuts as the road to redemption, only differing on the details of how much and how soon
By The Week Staff Published
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published
-
Ryanair: readying for departure from London
Speed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
By The Week Staff Published