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Operators Prepare for Regulatory Changes from UKGC
By Shane Addinall Aug 30, 2022 IndustryRegulatory changes guide operators in the UK to increase player protection protocols amidst a turbulent economic climate. The UKGC hopes the changes promote lower gambling harm rates and quicker responses from operators.Operators in the UK have until the 12th of September 2022 to fall in line with regulatory changes announced earlier this year by the British gambling inspectorate. Industry experts believe there is a possibility that some licensees may cause unnecessary friction with shortcuts, despite having 5 months to implement the changes.
The UKGC announced the new rules on responsible gambling measures in April this year, and as the deadline draws near, it is not clear how many operators updated their systems accordingly. With the cost-of-living crisis and annual inflation rates reaching 10.1% for the UK, operators must safeguard those most at risk of harm.
With the white paper on the gambling act review looming, operators must be flexible and ready to implement changes swiftly.
New Rules for UK iGaming Providers
Britain’s gambling regulator, the UKGC, announced a list of updates to responsible gambling protocols on the 14th of April and gave operators until the 12th of September to put stronger, more prescriptive measures in place.
Recent actions taken by the UKGC prove they will waste no time in measuring the licensees’ compliance with the new rules. At the time, Andrew Rhodes from the commission said:
“We expect operators to identify and tackle gambling harms with fast, proportionate and effective action and we will not hesitate to take tough action on operators who fail to do so.”
The UKGC hope the new guidelines drive quicker responses from operators when players show signs of compulsive gambling. Detailed guidance on consumer protection updates includes existing guidance and the additional guidance issued during the COVID-19 pandemic.
They expect operators to take greater care when identifying vulnerable customers and monitor specific indicators when determining harmful behaviour, with ‘strong indicators’ defined in the new laws. Operators must use automated services and processes in certain circumstances while following a detailed evaluation process when determining the impact of their customer interactions.
Increased Safeguards During Economic Crisis
Those who suffer from gambling disorders become more vulnerable during times of intense stress and the UKGC may not have planned it, but the intensified rules come at a crucial time. Economists warn that the squeeze from the cost-of-living crisis grips consumers from all over and the triple threat of recession, rising energy prices, and inflation hikes paint a dreary picture for the coming months.
The opposite is true for a certain part of the consumer market. A YouGov poll from June uncovered that 30% of the participants claimed they would reduce their gambling activities because of financial challenges. Some argue that regulations remain open to interpretation, and this leads to operators implementing overly rigid processes and pushing players away.
Meanwhile, along with the UKGC’s update, the British government may soon release the gambling reform white paper and considering the economic crisis, there might be compulsory affordability checks on the table.
Somehow, the government and the gambling regulator need to find the best way forward to protect consumers without paralysing the industry.
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