The UK ahead of regulatory changes following Gambling Act White Paper release

A few years ago, the UK government launched a review of its 2005 Gambling Act in an effort to make the main law about gambling more suitable for the digital age. The review was lengthy and there were multiple deadlines set for the Gambling Act White Paper. Sadly, many such deadlines were broken and that was the case until late last month when the White Paper finally arrived.

The arrival of the White Paper marked an important step in the overhaul of the gambling market in the country as it represents the start of the first major change for the sector in the last two decades. Not unexpectedly, gambling industry stakeholders, including online gambling, land-based and sports betting operators, as well as other gambling-related groups have been looking forward to the release of the White Paper.

Moreover, the Gambling Act White Paper comes at a time when the popularity of online gambling and betting via smartphones with 24/7 access to such activities has been growing. This popularity isn't only a fact in the UK, but around the world as well.

Given that there were different rumors, claims and speculations, the gambling sector and stakeholders within the industry have long expected the release of the White Paper and tried to predict how the changes will impact their businesses and operations. Despite the speculations and correct guesses by the sector, the White Paper proposed some unexpected changes.

White Paper calls for an overhaul of the sector

One of the prime changes to the gambling industry in the UK involves the implementation of robust affordability checks as well as limits for online gambling. The Department for Digital, Culture, Media & Sport (DCMS) proposed limits for online slot games, significantly restricting the amount users can wager per spin between £2 and £15.

Additionally, the White Paper called for additional regulation in an effort to protect young adults from gambling harm. Given that such groups, aged between 18 and 24, can be more vulnerable to problem gambling, they are likely to be subject to additional checks or restrictions.

On the other hand, the White Paper outlined the upcoming arrival of robust affordability checks. Such checks seek to limit the losses to gambling and ensure that punters do not enter into massive losing streaks over short periods of time. The changes related to affordability checks can be divided into "unnoticeable " and "invasive."

The unnoticeable checks, the White Paper suggests, can be triggered for players that have lost £125 in a single month or some £500 per annum. However, for higher losses, the "invasive" checks would come into play. Under the new proposal, customers that lose some £1,000 in a matter of 24 hours or £2,000 in 90 days, would be subject to more scrutiny by the gambling operators.

The White Paper seeks to introduce changes related to the advertising of gambling activities, as well as bonuses for online casinos. This will see the Gambling Commission consulting with stakeholders within the sector with the ultimate goal to implement a more effective regulation that enables users to stop receiving online gambling proposals. To protect the users, the White Paper also calls for the implementation of options for users to select and stop receiving lucrative offers for bonuses related to online gambling. At the same time, the White Paper calls for expanding the effectiveness and reach of messages that inform customers about gambling harm.

Regulations in the country to catch up to other European jurisdictions

Changes to the gambling regulations in the UK are imminent. It is not a question of whether it will happen, but rather when. While the White Paper outlines multiple changes to the regulation, the country is yet to reach the complexity of regulatory frameworks that are already effective in other European countries such as Sweden and the Netherlands for example.

In Sweden, which has one of the most tightly regulated gambling markets, lawmakers constantly strive to improve the regulations in an effort to protect the consumers. For example, only recently, the Swedish government greenlighted additional powers for the country's gambling regulator, the Swedish Gambling Authority.

As a result, the regulator, also known as Spelinpektionen, was given the option to engage with payment providers in the country and block payments to and from unlicensed gambling operators. Additionally, the Authority was allowed to engage with gambling operators under a hidden identity in an effort to ensure that they adhere to the rules.

Elsewhere, in another strictly regulated European gambling market, the one in the Netherlands, an improved self-exclusion program was introduced. Late last month, the gambling regulator in the country, Kansspelautoriteit (KSA), announced the launch of an updated version of Crucks, it's Central Register Exclusion of Games of Chance.

Thanks to the update, customers in the country were allowed to easily self-exclude from gambling activities for a temporary period. Since the launch of Crucks back in 2021, by now, more than 38,000 people have self-excluded from gambling activities. Although this marked an improvement for Crucks, the number of self-excluded people in the Netherlands remains significantly low when compared to the 365,000 registrations in the UK with GAMSTOP.

Changes to the gambling regulations will be gradual

The release of the Gambling Act White Paper marked the first step in a complex process that seeks to revamp the gambling sector in the country. Yet, changes aren't going to be rapid and without consent, judging by a statement released by the Gambling Commission's executive director, Tim Miller. He noted that some changes to the market may take a few years to complete. However, he did not dismiss the option to see "rapid progress in a number of key areas."

"There are a number of White Paper objectives, which are intended to be delivered through the License Conditions and Codes of Practice (LCCP), by the Gambling Commission. Where the Commission makes changes to the LCCP – the 'rule book' for gambling operators - we are legally obliged to consult on any changes and take any and all consultation responses into consideration before making changes," explained Miller.

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