The Gambling Commission (GC) and the Betting and Gaming Council (BGC) have jointly announced a series of new rulings and standards aimed at regulating gambling companies in the UK. These regulations come ahead of the British government’s White Paper and are designed to address various aspects of consumer protection and responsible gambling.
New Regulatory Changes in the UK Gambling Industry
New Rules by the Gambling Commission (GC)
Light-Touch Financial Vulnerability Checks
The GC has introduced light-touch financial vulnerability checks to identify and prevent cases of financial harm among players. These checks target individuals with a net deposit of more than £150 ($187.29) per month on gambling activities. Players with a net gambling deposit of £500 per month will undergo these checks starting August 30, 2024, which will gradually reduce to £150 per month by February 28, 2025.
Frictionless Financial Risk Assessments
A pilot program for frictionless financial risk assessments will be conducted by the GC, utilizing data from gambling companies and credit reference agencies. This assessment aims to evaluate players’ risk of financial harm without impacting their credit ratings. The pilot will run for six months to gauge its effectiveness.
Reduction of Online Product Intensity
To enhance consumer protection, the GC will mandate the reduction of intensity in online gambling products. This includes the removal of autoplay, turbo features, and spin speeds of less than five seconds. Additionally, multi-game play and audio or visual celebrations of returns equal to or less than the stake will be prohibited. These measures will come into effect on January 17, 2025.
Direct Marketing Opt-In
Starting January 17, 2025, online gambling companies must provide opt-in options for direct marketing related to specific products and channels. This aims to give customers greater control over the advertising they receive.
Age Verification
Land-based gambling operations will be required to conduct age verification test purchasing and age verify individuals who appear to be under 25, as opposed to under 21. This rule will be implemented on August 30, 2024.
Personal Management Licences
The expected management roles for individuals holding Personal Management Licences will be clarified and extended, effective November 30, 2024.
New Rules by the Betting and Gaming Council (BGC)
Voluntary Code on Customer Checks
The BGC’s voluntary Code on Customer Checks sets guidelines for operator interactions when players make rolling net deposits of £5,000+ monthly or £25,000+ annually. Operators will be required to conduct vulnerability assessments, risk assessments, and implement intervention measures for players deemed vulnerable.
Vulnerability Assessments and Risk Checks
Operators must conduct vulnerability and risk assessments on players meeting the specified deposit thresholds. These assessments may include income or wealth checks, document requests such as Enhanced Due Diligence (EDD), and intervention measures for at-risk players.
Implications and Industry Impact
The new regulations set by the GC and BGC represent a significant step towards enhancing consumer protection and responsible gambling practices in the UK. By implementing stricter financial checks and reducing the intensity of online gambling products, regulatory bodies aim to mitigate the risks associated with excessive gambling behavior. These measures underscore the commitment of both regulators and industry stakeholders to safeguarding the welfare of consumers while maintaining a thriving gambling industry.
Conclusion: The Collaborative Effort
The collaborative efforts of the Gambling Commission and the Betting and Gaming Council reflect a proactive approach to addressing the evolving challenges in the UK gambling landscape. By introducing comprehensive rules and guidelines, regulatory bodies aim to foster a safer and more responsible gambling environment for all stakeholders involved.
FAQs About New UK Gambling Regulations
1. What are the new rules introduced by the Gambling Commission (GC)?
The GC has implemented several new rules aimed at enhancing consumer protection and responsible gambling practices in the UK. These include light-touch financial vulnerability checks, frictionless financial risk assessments, reduction of online product intensity, mandatory age verification for land-based operations, and clarifications on personal management licences.
2. How do the light-touch financial vulnerability checks work?
Light-touch financial vulnerability checks target individuals with a net deposit of more than £150 per month on gambling activities. Players exceeding this threshold will undergo checks to prevent cases of bankruptcy and excessive spending. The frequency and intensity of these checks vary based on the player’s net gambling deposit.
3. What is the purpose of frictionless financial risk assessments?
Frictionless financial risk assessments, conducted by the GC, aim to evaluate players’ risk of financial harm using data from gambling companies and credit reference agencies. These assessments are conducted in a pilot program to gauge their effectiveness in identifying at-risk individuals without impacting their credit ratings.
4. What changes are being made to online gambling products?
The GC is mandating the reduction of intensity in online gambling products to increase consumer protection. This includes the removal of autoplay, turbo features, and spin speeds of less than five seconds. Additionally, multi-game play and certain audio or visual celebrations will be prohibited.
5. How will direct marketing be affected by the new regulations?
Starting January 17, 2025, online gambling companies must provide opt-in options for direct marketing related to specific products and channels. This gives customers more control over the advertising they receive, aligning with the goal of promoting responsible gambling practices.
6. What are the key provisions of the Betting and Gaming Council’s (BGC) voluntary Code on Customer Checks?
The BGC’s code sets guidelines for operator interactions with players making rolling net deposits of £5,000+ monthly or £25,000+ annually. Operators are required to conduct vulnerability and risk assessments, implement intervention measures for at-risk players, and engage in proactive customer interactions to promote responsible gambling.
7. How will the new regulations impact operators and players in the UK gambling industry?
The new regulations aim to create a safer and more responsible gambling environment by implementing stricter financial checks and promoting transparency in operator-player interactions. While operators will need to adapt to these changes by enhancing their compliance measures, players can expect improved protection against the risks associated with excessive gambling behavior.
8. What is the timeline for implementing the new regulations?
The new regulations introduced by both the GC and BGC will be implemented in phases, with completion expected by February 2025. Specific dates for the implementation of each rule vary, with some provisions already in effect and others set to be rolled out gradually over the coming months.
