After suffering several major delays, the British Government finally published the Gambling White Paper on April 27th, and, as predicted, it looks set to shake up gambling regulation in the country.
Several of the changes that have been proposed have been welcomed by the industry, while others have been met with some concern. There are also many questions about what some of these suggested changes will look like in action.
Key Points From The Gambling White Paper
At a glance, some of the key talking points from the paper were:
- The introduction of stricter and more detailed affordability checks
- Stricter advertising measures
- More resources are being allocated to promote gambling responsibly
- The introduction of a Gambling Ombudsman
- Betting limits are being introduced to online slots
- Sports betting being allowed at physical casino venues
Of course, other points were also raised in the White Paper, and there will be further talks about which of the rules will be put into practice and how they will be enforced.
Affordability Checks And Slot Limits
The introduction of stricter affordability checks was anticipated, but some questions have been raised about the limits put in place. These checks are to be introduced at two levels. The highest level will see more invasive checks carried out on players that lose £1,000 in 24 hours or those that lose £2,000 in 90 days. The level of these checks has not been made clear, though it will be the responsibility of the operator to carry these out.
While there has been some backlash to these proposals, there has been much more opposition to the checks for lower-paying players. The proposal said that players that lose £125 in a month and £500 in a year would be checked. It also proposes these limits be lower for players under 24.
Critics of this proposal believe that this is too low and that it will force people towards using unregulated casinos. There is also a lot of speculation as to how this will be implemented, with some suggesting that it is the kind of policy used to gain good-will politically but will be difficult to implement in reality.
It appears that issues about customers creating accounts at multiple operators to avoid these checks have been thought about. One of the proposals was that operators would share information about customers with one another, with the UKGC being actively involved in this. Once again, this has led some to suggest that this is too invasive and that it will turn people towards less-secure betting options.
Similarly, the proposed restrictions on slot limits have caused controversy. The proposed limits will be a maximum stake of between £2 and £15 on online slots, with these being tighter at £2-£4 for those under 24. These proposals will still be subject to further consultation, which is something that has left some feeling frustrated about.
Tighter Restrictions For Premier League Clubs
Changes To Marketing Rules
Another topic that was expected to receive plenty of focus was advertising rules. The UKGC intends to work with the Advertising Standards Agency to ensure that the industry tightens up its approach to advertising, ensuring that younger and more vulnerable players are kept safe.
Several operators have already taken steps to tighten their policies, and the UKGC wants to continue this. Options for opting out, stricter regulations on VIP promos, and a clamp-down on direct marketing are all discussed in the paper.
A big area affected by this is sports. The Premier League recently voluntarily removed gambling sponsors from the front of their shirts in a move that many felt was the division jumping before it was pushed. The UKGC has said it intends to work closely with the Premier League and sports bodies in general to create a new framework for gambling advertisement in sports.
Boost For Land-Based Casinos
One of the more positive aspects of the White Paper was the proposed changes for land-based casinos. It was proposed that sports betting be legalised at land-based casinos, something that will no doubt give the industry at large a boost after the Covid-19 pandemic.
There was also a proposal for the introduction of contactless payments at casinos, something that has been successfully trialled in other countries.
Finally, restrictions on the number of slot machines at venues will also be loosened, with a proposed ratio of five to one slots to table games. Slot machines are a huge source of revenue for land-based venues, and this will no doubt give them a serious boost.
Sports Betting Boost For Land-Based Casinos
UKGC, Research, And The Gambling Ombudsman
The introduction of a statutory levy to help fund gambling research, education, and treatment was allegedly something of a sticking point in the release of the White Paper, with some pro-industry MPs arguing against it. The proposal did make the final cut, with the Government believing that operators should help to solve gambling-related issues.
This will be viewed as one of the paper's more controversial elements and will likely go back and forth for some time. Further talks will take place to determine how to implement this and what exactly it will look like.
One of the more surprising announcements in the White Paper was the proposed introduction of a Gambling Ombudsman. This has been well-received by most within the industry, with the Ombudsman existing to settle customer disputes.
The White Paper also seeks to provide more power to the UKGC. It wants to provide the organisation with access to more data and make sure that it is fully equipped to deal with any issues that arise. It aims to make it a much more proactive regulator.
Interesting Times Ahead
After much speculation, the White Paper has arrived, and, at the moment, it’s fair to see it has had a mixed response. Some proposals have been well-received, especially for land-based casinos, and the introduction of an Ombudsman has been praised across the industry. Other proposals have, predictably, been met with criticism.
Fears around the industry becoming over-regulated will have become amplified by the proposed restrictions on slots and the affordability checks. However, these issues are still somewhat up-in-the-air, and it is hoped that things will be made clearer soon.
The government insists, however, that the gambling industry will continue to boom and that these proposals will benefit operators and consumers in the long run. The implication of these changes will take several years, but the UKGC insists it is up to the task. Only time will tell.
