An Overview of Gambling Laws in the UK
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The accelerated progress of the online and digital age has had a dramatic effect on gambling habits in the UK.
Online gambling now accounts for the majority of British gamblers spend, with online slots being the leading money-maker for gambling companies. Indeed, figures show that the UK public spent £2.2bn on online slot games in 2019. The figures have continued to rise since.
With such an increase in spending on online gambling sites, it is no surprise that the Gambling Commission has done its best to keep up with the rapidly changing face of the industry.
The new Online Safety Bill recently drafted in the UK aims to reduce fraudulent activity online alongside protecting users from abuse. By using specific gambling laws the new legislation aims to make gambling as safe as possible and ensures a regulated online poker site protects it’s consumers.
New restrictions aimed to make online gameplay safer and less physically and mentally demanding have also been put forward. The new measures include stricter laws governing how distinctions between wins and losses are made, as well as limits on speeded up gameplay.
Gambling laws are important for good reason. Essentially, they help to protect players and society in general from unregulated companies and platforms.
In the UK, the Gambling Commission is a public body tasked with issuing licences to businesses that provide gambling within the UK.
New Technology and Gambling
The rapid advance of online gaming and new remote smartphone technology has presented the Gambling Commission with unique challenges.
As it stands, the Gambling Act 2005 is how all gambling business operating in the UK is regulated. This includes all operators of remote gambling, who will need to be licensed to operate.
As gaming sites have grown more popular throughout the UK, the Gambling Commission has needed to make certain alterations to how it manages the industry regulations. An amendment to the Gambling Act was made in 2014. It was expressly concerned with online gambling and made a major change in citing that the Act needed to cover all companies that offer online gambling, no matter where they are based.
The Gambling Act covers all businesses that offer online gambling within the UK. As well as the hugely popular slot games, this also includes poker online, which is also extremely profitable and widely available.
Further Changes in Store
Casino style games are growing online year on year in the UK and the Gambling Commission is dedicated to making them as safe as possible.
The new Chair of the Gambling Commission, Marcus Boyle, has been hired by the Government to make the first full-scale review of gambling laws in 15 years. Aiming to bring in regulations more in keeping with the digital age, the review could herald several more changes.
It has been noted that much of the concern for bringing the regulations up to date comes from a 2020 You Gov survey that found 2.7% of adults are problem gamblers. While the precise figure has been the subject of debate, the UKGC and the government had to be seen to be protecting players.
A significant move could come later this year with rumours being made that there may be a ban on gambling companies sponsoring shirts of footballers and darts players. That could be a major test. Sponsorship money is one of the biggest earners in sport. If major financers such as successful gambling companies can no longer sponsor teams and players, the commission risks becoming unpopular with the sports industry.
Another significant change being debated is a ban on the process of ‘reverse withdrawals.’ This is a function on some games sites that allow players to re-gamble their money after opting to make a withdrawal.
The feature has come under intense scrutiny as it has been tipped to present a damaging temptation to players to continue gambling. If the option for reversing the decision to withdraw was not there, the chance of damaging gameplay would be negated.
Many will see these proposed moves as a continuation of regulations already brought in by the Gambling Commission. In the last year alone, it has raised the age of National Lottery play to 18.
Last year, the UKGC also banned the use of credit cards when gambling online. That change, according to the then CEO Neil McArthur, was made to ‘minimise the risks of harm to consumers gambling with money they do not have.’
2020 also saw the UKGC target so-called VIP schemes offered to regular players on online platforms. The new rules made it clear that both providers and players have to adhere to the new regulations. Since the passing of the rules, companies now have to provide evidence that a player’s spending is sustainable. Known as gambling harm checks, the regulations are another attempt to minimise the possibility of problem gambling.
Unique Challenges Ahead
The Gambling Commission has drawn some criticisms for being too inflexible and small to deal with the complexities of the online gambling industry. With the new changes unveiled, the body is aiming to prove these criticisms wrong. One thing is for sure, there will be unique challenges ahead. More articles on laws relating to sports and iGaming can be found here.
