Gambling Reform in the UK: What Changes to Expect in the Gambling Scene
As the UK prepares to launch a new set of guidelines following the ongoing review of the 2005 Gambling Act, stakeholders are waiting with bated breath as events unfold. Licensed operators in the region, such as https://greencasino.com/en, are particularly waiting to see how the regulatory revamp may change things up.
Since the regulatory evaluation officially commenced in December 2020, several recommendations have been suggested by both lawmakers and industry stakeholders. If approved, the new measures will build on the 2005 Gambling Act, which covered three main areas of the activity:
- Prohibition of associating gambling with any type of criminal activity.
- Ensuring that gambling is fair and transparent for both players and operators.
- Safeguarding youngsters and vulnerable players to prevent exploitation and harm.
When the proposals for updated rules to guide the UK gambling industry first made it to legislative meetings, the main concern was consumer protection, which seems to remain the same as the D-day date draws closer. With that in mind, here’s a highlight of the changes expected to be introduced by the gambling reforms:
KYC Protocols to Identify At-Risk Gamblers
Betting platforms in the UK will be required to monitor their customers using a set of indicators from the moment of signing up. These indicators include time spent betting and behavior of the gamblers, and in case of any cause for alarm, alerts would be issued for action to be taken.
The information is to be shared on a central platform under the supervision of the Gambling Commission. The current system is based on self-exclusion safeguards, which the UKGC thinks is unreliable and requires more oversight. The single customer view approach would also lead to customer accounts being locked out should there be enough evidence that continuing to gamble on the site would cause harm to the individual.
Gambling Companies Kit Sponsorships Ban
The UK government has yet to decide whether it will impose a ban on kit sponsorships for Premier League teams by gambling companies. A heated debate ensued in June 2022 regarding a government-imposed ban, but so far, the arguments in favor of the ban have not officially borne any legislative fruits. Nonetheless, a recent move by the Premier League points towards the possibility of the ban becoming a reality.
So, instead of waiting for the government to pull the plug on football kit sponsorships, the Premiership has reportedly asked the clubs to voluntarily phase out gambling companies’ sponsorship deals in a vote. However, this is inconclusive as there is still conflict between legislators and other departments regarding whether the ban should be implemented.
Nevertheless, if at least 14 of the 20 EPL teams vote for gradually phasing out of the kit sponsorships from gambling companies, such contracts will cease to exist by the 2024-25 season. Henceforth, teams with such sponsorships still in place would be liable to a levy allocated for gambling addiction research initiatives, education and rehabilitation.
Gambling Affordability Checks
To enhance player protection, the ‘Affordability for Gambling Tool’ is set to be launched. Developed by W2, the tool analyzes players’ affordability in a non-intrusive way to allow them to enjoy their gambling experience without feeling ‘watched.’
The analysis will cover the consumer’s background, demographics and location to get a better understanding of the player. Background checks include finding information on declared income, past and present credit history and the general circumstances of the player. Affordability checks will contribute to fewer cases of players falling off the rails unbeknownst to even the closest family members.
A New Dawn Edges Closer for UK’s Gambling Scene
For years, campaigners have termed problem gambling a health issue in the UK, prompting debates in multiple councils. They called for a need to review the current guidelines, which according to some studies, have been deemed insufficient to deal with the evolving online betting market.
The review process of the 2005 Gambling act was initiated after reports showed that the number of UK residents betting on online gambling platforms had increased exponentially. When Coronavirus lockdowns were factored into the equation, some research showed that gambling in the current state of regulation contributed to increased mental illness cases. While most of the population gambles safely when all factors are considered, activists are more concerned about the smaller percentage that is more vulnerable. Of course, it is best for the entire industry to function on a clean bill of health.
UK’s Political Turmoil Is Causing Delays
Government officials were to publish a white paper on the regulatory review, but its publication has already been put on hold three times. And now, PM Boris Johnson’s recent resignation has just led to a fourth postponement as no new reforms will be signed until a new Conservative party leader position is filled.