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UK Regulator Faces Public Backlash Amid Gambling Industry Overhaul
By Jeff Osienya Nov 07, 2023 IndustryThe UK public is firing back at the Gambling Commission and DCMS for pushing more restrictive regulations. After the first round of consultations, two public petitions have already been published in response to new affordability and financial risk checks.The United Kingdom Gambling Commission (UKGC) is facing backlash from the general public due to its recently proposed overhaul of the gambling sector. After publishing the long-awaited gambling industry white paper earlier in April, the complex review process that followed has caused jitters amongst some key figures in the national regulator.
Following lengthy deliberations with different stakeholders, the UK’s gambling sector white paper brought forth a series of recommendations to improve the region’s gambling scene. While most of the plans proposed by the white paper remain on course for implementation, some may face the chopping board as the calls by the public to drop some clauses remain steadfast.
A Mix of Good and Bad News to the Industry Players
The reforms suggested in the white paper were fronted by the Department of State Culture, Media and Sports (DCMS), headed by the DCMS Secretary of State, Lucy Frazer. Leading the critical reforms suggested were issues to do with affordability checks and wager limits. For the affordability checks, two options were given. The first one was for the installation of a ‘moderate loss threshold’ of either a loss of £125 ($156) in 30 days or an annual loss cap of £500 ($624)
Additionally, as many operators across the UK had previously feared, responsible gambling efforts will no longer be voluntary. For instance, the white paper suggested that a new mandatory tax be enforced for responsible gambling initiatives. Curiously, the white paper did not specify what the statutory levy would entail, leaving operators confused.
On top of that, the government proposed plans to ensure that there is a limited time in which consumers can spend time gambling online. This initiative, of course, raises significant concern for online operators. But then, brick-and-mortar operators on the other end of the spectrum may benefit from that rule, especially since physical casinos may soon be allowed to offer more gaming equipment.
Further, under the new gaming plans in the UK, it was proposed that the regulator be accorded more authority to keep the industry in check. For instance, some new powers include the ability to adjust licensing fees per the current inflation rate. The regulator will also be allowed to liaise with ISPs to block unlicensed sites and even compel an operator to reimburse a user following a complaint or face a ban.
The report further addressed many other critical issues expected to make the industry safer and aligned with modern technological standards. The paper’s publication was followed by announcing a three-year evidence plan focusing on how to implement the fronted recommendations ted.
The First Round of Consultations Elicit Public Outcry
The Gambling Commission’s first round of post-white paper consultations brought forth a resounding 3,000 submissions from members of the public. These consultations focused on issues such as financial risk checks, cross-selling, direct marketing, and age verification for online and brick-and-mortar casinos.
With the first round of consultations out of the way, many industry stakeholders are worried about how the planned changes will affect the overall UK gambling industry. The resultant public uproar led to a petition signed by almost 25,000 people within a day, vehemently opposing the proposed financial checks on gamblers while questioning affordability assessments.
As we speak, there are two active petitions against white paper recommendations. The first petition is dubbed the ‘Stop the Implementation of Betting Affordability/Financial Risk Checks’ while the second goes by ‘Don’t Allow Affordability Checks for Sports Betting.’. Given how outraged the public is by the harsh regulatory propositions, the first petition garnered more than 40,000 signatures within 48 hours, while the second petition had over 4,000 signatures within the first two days.
From the look of things, the UK government may be forced to formally respond to the petitions by way of parliamentary debate and find a middle ground – or make a complete U-turn to abandon the measures. According to the nation’s law, a petition that garners more than 100,000 signatures must be tabled in Parliament for further deliberation. As such, should both petition petitions break the 100,000 barrier, they must be addressed in the British legislature.
Moreover, many prominent industry stakeholders have expressed dissatisfaction with some clauses in the proposed regulatory revamp. For instance, Julie Harrington, the Chief Executive of the British Horseracing Authority (BHA), called out the affordability checks measures, saying:
Quote“The BHA is gravely concerned about the impact on racing’s finances of proposed affordability checks. While we do not want anyone to come to harm from betting on racing, blanket affordability checks are not appropriate, and we are also very concerned that the Gambling Commission’s proposals to assess people’s eligibility to place a bet based on their job title or postcode are discriminatory.”
Regulator Open to Feedback On Social Responsibility and Incentives
Following intense criticism from the public, the UKGC is now accepting feedback from gaming entities, particularly concerning the issue of incentives and social responsibility. While the underlying plans of the white paper remain on track, questions are being asked, and the UKGC is taking notice.
Speaking at the British Amusement Catering Trade Association (BACTA) last week, the UKGC’s Director of Compliance, Mandy Gill, sought to bring more insight into this highly contentious part of the white paper. She explained that incentives such as free bets from operators had been one of the major talking points in the various consultative processes that the regulator had set in motion.
Already, the UKGC recently introduced a slew of restrictions on how much incentives can be used to attract new players. Given the newly rules proposed by the white paper, many are worried that this move may pave the way for the black market. Still, only time will tell how the industry will fare as the regulator continues to tighten its grip on the gambling sector.
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