ShareEarlier this year, the UK government announced major reforms to the country's gambling laws in order to protect vulnerable users in the smartphone era. The reforms aim to modernise the Gambling Act 2005 for the digital age and are the most comprehensive reforms to the gambling sector since the act was introduced almost two decades ago.
New Rules
The British government has published a white paper on gambling rules that outlines the proposed changes. The key changes include:
- An increase in affordability checks when losses are unaffordable or harmful.
- A staking limit of between £2 ($2.49) and £15 ($18.70) for online slots, subject to consultation.
- The UK Gambling Commission will get resources to help curtail VIP schemes and bonus offers.
- A new statutory levy for gambling firms will help “turn the tables on problem gambling.”
- A non-statutory ombudsman will give customers a “single point of contact” for grievances.
- A rebalance of regulation will remove unnecessary bureaucracy and reduce the burden on businesses.
The government has stated that the changes are necessary to protect vulnerable users, as the rise of online betting has made gambling easier, quicker, and often more fun, but when things go wrong, it can see people lose thousands of pounds in a few swipes of the screen.
The government has also stated that the reforms will ensure an appropriate balance between consumer freedoms and choice on the one hand, and prevention of harm to vulnerable groups and wider communities on the other.
In July, 2023, the UKGC revealed that credit reference agencies might not be equipped to provide the required information.
If this turns out to be the case, then the vast majority of users will be required to submit to an intrusive financial check to deposit even small amounts. Sports minister Stuart Andrew told a committee that if this is the new reality, the process wouldn’t be forced upon the industry until it was “genuinely frictionless” following a pilot run.
Mixed Reactions and Public Consultations
The proposed changes have been met with mixed reactions. Campaign group Charity Gambling with Lives, which supports families bereaved by gambling-related suicide, welcomed the changes but said they did not go far enough.
The group called for a complete ban on gambling advertising and sponsorship in sport, as well as a reduction in the maximum stake for fixed-odds betting terminals (FOBTs) to £2.
The Betting and Gaming Council, which represents the UK's gambling industry, has stated that it supports the Gambling Review to "raise standards and promote safer gambling, but any changes introduced by the government must be evidence-based, proportionate, and strike the right balance between protecting customers and the viability of the regulated industry".
The government has launched three public consultations regarding the recent white paper on Gambling Act reform. The UK Gambling Commission (UKGC) will take responsibility for a 12-week consultation that will focus on financial risk checks.
The DCMS will lead separate consultations regarding restricting bet sizes for online casino games and the proposed changes to laws for land-based gambling facilities. The former will last for eight weeks, and the latter will span a ten-week period. The white paper proposes a stake limit of between £2 ($2.58) and £15 ($19.38) for online slots.
The proposed changes have also raised concerns among some in the gambling industry. Some have argued that the reforms will lead to a reduction in revenue and job losses.
Others have raised concerns about the impact of the reforms on mid to high stakes poker games in the UK, citing difficulties in making deposits. Some have argued that the proposed changes will make it more difficult for players to find games, as many operators may choose to leave the UK market leaving British players exposed to the grey market.
