On April 27, 2023, the Gambling Act Review white paper was published in the UK, and everyone hoped it would be greatly helpful when it comes to gambling regulation. However, here’s what happened after one year.
Changes in the law
The GB Gambling Commission discussed online and land-based casinos, as well as horse racing. The consultations about the Commission’s proposals began in July, and its main focus was promoting sustainable and safe gambling, as well as conducting affordability checks.
The discussion about the relationship between operators and players was one of the main topics. According to Victoria Reed, a Founder of Better Change, the standards are already high, and in order to develop more strict regulations, the balance is needed. She said: “This is already a heavily regulated industry so I would argue that standards are generally pretty high when compared with other industries. But the nature of our business is heavily influenced by technology and customer trends – therefore, there is never time to rest on our laurels and think we have got it all figured out.”
Matt Zarb-Cousin, Gamban’s co-founder and director of external affairs, is positive that operators will benefit from improving the relationship, and in order to do that, they would have to comply with a change of standards.
The sustainability and safety of gambling must be priorities, even from a preventive standpoint. Reed commented on that: “We see “safer gambling” very much as the practice of gambling safely. Therefore, the act of restricting, limiting, banning, blocking, and even stigmatizing gambling has no place in safer gambling. As a result of this, we see very little in the white paper that for us constitutes safer gambling – instead, we feel the measures such as stake limiting and financial risk checks are more aligned to player protection.”
Preventing problem gambling and major concerns
Better Change keeps supporting Positive Play and tries to prevent problem gambling before the issue occurs. Proposals from the white paper comply with that, but in order to work, they have to be carefully implemented.
The losses have to be limited since the players who lose more are at higher risk of becoming addicts, so setting the limits is one of the best ways to prevent it.
Even the operators would benefit from that, since if the customer loses all their money, they would have to be self-excluded and they would never get back. The Commission is ready to set up the affordability checks, but it will have to be done case-by-case in order to work. On top of that, a statutory levy on gross gambling yield will be imposed, and it will be 1%.
Zarb-Cousin commented on that: “Affordability checks, if they’re done properly, and the levy will make a big difference. The quantity and the resources that will be able to go into treatment and prevention campaigns – all of this will make a big difference.”
The main issue about the proposals from the white paper is funding. There are some funds donated for research, education, and treatment of problem gambling, but it seems the only way to get funds is a mandatory levy.
However, Zarb-Cousin hopes that the suggested changes can be implemented by October 2024, including the pilot program for affordability checks, which should be finished by then. Next year, the new levy system is supposed to be implemented, two years after the release of the white paper.
However, Melanie Ellis, a gambling regulatory lawyer and partner at Northridge Law LLP, is concerned that the new regulations could drive the players to illegal operators. She said: “There is a risk that some proposals, such as the stake limit for online slots and restrictions on bonuses and incentives, could lead to a significant increase in the number of customers turning to unlicensed operators, where they may not be offered tools to control their gambling or interventions if they display indicators of harm.”
However, it’s clear that the white paper increased the awareness of problems in the industry and was a significant step towards solving the majority of them. However, a lot of work is ahead of the UK regulators, and only years of hard work can result in complete change. Sustainability remains the main focus.
Source: “Gambling Act review white paper: One year on”, iGamingBusiness. April 24, 2024.