The UK Government has finally published its long-awaited review, which is expected to have stricter rules on online gambling, including a 1% levy on industry revenue, limits on slot machine stakes and affordability checks. The government has published the proposals in an effort to update its iGaming regulations for the modern mobile-gaming era.
What is the White Paper on gambling in the UK?
The White Paper is a review of the 2005 Gambling Act, which aims to ensure that it was "fit for the digital age". It proposes a number of initiatives that will enable operators to continue using technology to ensure those who have no issues with their betting can continue to do so, while ensuring that the small number of players who can possibly develop issues with their gambling activities receive all the support they need.
After several delays and leadership changes within the UK government, the Department for Culture, Media and Sports (DCMS) has now published its White Paper on Thursday, April 27, 2023, showcasing its blueprint for regulating the modern gambling industry.
DCMS secretary Lucy Frazer told the House of Commons that gambling could potentially destroy lives and ministers were "bringing our pre-smartphone regulations into the present day with a gambling white paper for the digital age," according to The Guardian.
The proposals laid out include:
- A 1% mandatory levy on industry revenues.
- Tougher affordability checks to prevent huge losses.
- Online slot machine stakes capped at between £2 and £15.
- Curbing "free spin" and "bonus" offers.
- Measures to slow down online casino games.
- More resources for the Gambling Commission.
- Plans for a gambling ombudsman.
In the affordability checks, any person who loses more than £125 a day will face checks on whether they have declared bankruptcy or have any county court judgments against them. For those with higher losses of £1,000 or more a day, they will face open banking checks that assess their income.
The process, however, had not yet been finalized - almost all of the measures will still be subjected for further consultation, implying further delay to a review that started in late 2020 with the intention to update the 2005 Gambling Act passed by the Blair government.
The update comes as iGaming continues to gain a bigger footprint within the UK gambling sector, now accounting for most of the £11 billion ($13.7 billion) that the industry generates from British punters annually.
Frazer said many people do enjoy gambling without any adverse effects, but the iGaming industry is "unrecognizable" when compared with the pre-smartphone age and that gambling addicts were suffering extreme harm. Extensive concerns about addicts, vulnerable adults and children have triggered increasing calls for ministers to crackdown on gambling.
According to UK Gambling Commission, about 0.3% of British adults were found to be problem gamblers in 2021, but a survey by polling company YouGov estimates it at 2.8%, or almost 1.4 million people.
See the full UK Government's White Paper.
Source: https://www.gamblingcommission.gov.uk/news/article/gambling-commission-publishes-gambling-act-review-advice
