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White Paper Controversy Continues Amid Rumours of Technical Restrictions
By Shane Addinall Jul 11, 2022 Industry: UK gamblers and operators remain in the dark about what the Gambling Act review will bring to the table, but reports indicate a regression to original limitations. Speculations continue as patience wears thin.Along with the announcement of further delays for the UK government’s gambling reform white paper comes British media reports on the outcome of the overhaul. The Department for Culture, Media, and Sport announced that its review should wrap up in July.
With news sources indicating that the reforms include technical constraints on operators and the possibility of DCMS going against agreements with certain MPs, the new deadline seems highly unlikely. Media reports cite Prime Minister Boris Johnson affirming his pledge to impose significant restrictions on the gambling industry.
Industry leaders argue, and independent studies show that technical constraints may lead to a tremendous drop in revenues, but PM Johnson insists on curbs to make the UK the safest place to be online.
Pending Agreement
After yet another delay in the release of the white paper, speculations rise on what the gambling industry should expect from the government’s recommendations in the Gambling Act review. Early reports suggested the regulations would constrain operators, and players would be subject to affordability checks.
A flood of media reports, public opinion surveys, and research studies on the dangers of controlling consumer choices seemed to have persuaded lawmakers otherwise. Talks of stake limits and bonus bans dropped off the radar, and other factors moved into view. Anti-gambling lobbyists, along with MPs Carolyn Harris and Iain Duncan Smith, expect a ban on football sponsorships and compulsory RET levies.
The latest reports detail how PM Johnson doubled down on his 2019 General Election promise of imposing significant curbs on the online gambling sector. Reports show that these significant curbs will take the form of stake limits, bonus bans, and affordability checks. It seems like a sports sponsorship ban is up for discussion, and the levy is off the table.
These changes may infuriate MPs Harris and Smith, leading to further delays as parliament battles to conclude.
Restrictions Back in the Game
Sources cite the government’s recommendations will include technical controls on online gambling operators. These include £2 to £5 stake limits for online casinos, prohibition of free bets and VIP offers for compulsive gamblers, and non-intrusive affordability checks. The British government hopes these limitations will protect players from making unsustainable losses.
Further technical controls include game designs that lower the level of risk for consumers as agreed on by operators registered with the Betting and Gaming Council (BGC). A strengthened UKGC will take on stringent monitoring of online incumbents with new powers and deeper coffers supported by hiked-up industry fees.
Consumer rights will be central to further reforms, with a new industry ombudsman overseeing customer disputes. The latter has a majority vote from industry leaders, but other changes may cause disruption and further delays.
Voluntary Sponsorship Refusals and Levies
A surprising change is a step back from Premier League football sponsorship bans. Although the UK government promised Harris and Smith that sponsorships would end, the DCMS revised this and will instruct football clubs to refuse gambling sponsorships voluntarily. According to reports, lawmakers prefer to keep the sponsorship ban in reserve at first.
The DCMS also dropped plans to impose a mandatory social responsibility levy on operators. It is currently a voluntary contribution, and it is unclear at this stage how the government plans to fund research, education, and treatment (RET) projects. NHS governors called for this restructuring as they believe support from gambling operators is a conflict of interest.
MPs Harris and Smith declared they expect the above two stipulations in the upcoming white paper, and without the restrictions, they will go to war with the government.
Winter is Coming
With the continuous backwards and forwards performance from the UK government, the release date of the white paper is debatable. DCMS holds firm on a wrap during the 2022 summer, but the latest developments could cost online gambling £700 million in losses. This excludes what major football clubs stand to lose with the instruction to refuse sponsorships.
Apart from the expected backlash on technical restrictions and sponsorship refusals, MPs Harris and Smith may stand in the way of concluding the British Gambling Act review this season.
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