Irishluck.ie comments on the suggested cap for online slots bets propose
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Whether you are a seasoned bettor or merely interested in starting to place wagers, you will likely have heard all about the UK government’s plan to overhaul online gambling laws.
In April 2023, the UK government outlined its plan to modernise the regulation of the gambling sector in a white paper. Part of this reform was to introduce stake limits for players under the age of 25 in a bid to halt problem gambling among the age group.
So should online casinos in the UK be concerned?
According toIrishluck.iebusinesses should not worry about the proposed bill having a catastrophic impact on them. This is due to the forecasted expansion of the gambling industry, which is projected to hit 114.4 billion US dollars in 2028 (according to Statista).
This article will delve deep into the government’s proposal and assess the impact it could have on the industry and gamers themselves.
Recap of the white paper and the proposition
Following a review of the Gambling Act 2005, the UK government wants to introduce a stake limit for online slot games. There are currently four different options on the table, each of which varies in size of stake.
The proposed maximum stake limit is between £2 and £15 per spin, in a bid to limit the risks of large losses, binge play and loss chasing. The four options set out for consultation are:
- a maximum online slots stake limit of £2 per spin
- a maximum online slots stake limit of £5 per spin
- a maximum online slots stake limit of £10 per spin
- a maximum online slots stake limit of £15 per spin
The white paper has committed to consult on slot-specific measures concerning players who are between the ages of 18 and 24. This would be in line with the cap for customers of all ages on shop-based fixed-odds betting terminals.
In regards to the specific cohort, there are three further options outlined:
- a maximum online slots stake limit of £2 per spin for 18 to 24 year olds
- a maximum online slots stake limit of £4 per spin for 18 to 24 year olds
not introducing a specific statutory stake limit for 18 to 24 years olds (meaning they could access the general maximum limits above), but instead introducing specific requirements on operators to consider age as a risk factor for gambling-related harm which could justify a range of mitigations, including limiting access to higher staking opportunities on a case-by-case basis
Other planned measures that could occur include affordability checks for players recording sizable losses. This would likely involve the industry regulator the Gambling Commission consulting on how and when such checks could be carried out.
What’s more, the level of digital marketing could also be cut down, with promotions and offers of free bets and bonuses also set for further consultation.
The measures featured in thewhite paperare seen as a way to protect vulnerable individuals and promote responsible gambling practices. If some of the proposals are actioned, the gambling industry could certainly look different in how it operates.
However, whatever changes come into place, at Irishluck.ie, players will still be able to conduct their own assessment of different online casinos before deciding which platform best suits the type of bets they wish to place.
Examples and lessons from other countries
Back in 2022, Sweden announced players would only be able to deposit SEK 4,000 a week in a bid to control problematic gambling. Online casinos also had to limit welcome bonuses while physical slot machines also featured a new loss limit.
This came after budget and debt counsellors reported an increase in Swedish citizens suffering from financial issues due to problem gambling.
In October 2023, the Swedish Gambling body also supported proposals around tightened credit rules, with gambling operators no longer permitted to promote third-party sources of credit.
In Germany, meanwhile, a new federal gaming regulator was set up in the summer of 2022 and was created through Germany’s Fourth State Treaty on Gambling.
The Treaty allowed nationwide online casino gaming for the first time but with a number of rules in place. To protect players, measures included a €1 spin-stake limit for online slots.
The Fourth State Treaty on Gambling allows nationwide online casino gaming for the first time, but with a number of strict rules intended to protect players. These measures included a €1 per spin stake limit for online slots.
It is expected these steps taken by other countries in Europe will be assessed by the UK government in order to make informed decisions and boost understanding about how stake limits can bring about positive change and address problem gambling.
This consultation on the different options helps the government to consider the best available evidence when deciding which regulations and possible alterations to pursue.
Irishluck.ie weighs in on what would it mean for all online casinos in the UK.
Online slots are a popular form of entertainment and a significant source of revenue for many operators and so implementing a stake limit could potentially lead to a decrease in revenue for online casinos, which may have a ripple effect on the industry as a whole.
Irishluck.ie, suggests, that this change might not be as detrimental in the long run as some might fear, by referencing forecasts from sources likeStatista. Even with the proposed stake limits, the enthusiasm for placing a wager shows no sign of waning.
The casino and gambling market share continues to grow at a rapid rate. With online operators offering so many different advancements in gameplay and promotions thanks to newtechnologiesand developments, gamers will continue to play, with more people enjoying the entertainment open to them.
The government expects any new license condition to come into play during early 2024. It claims: ‘Given the relative ease with which operators can adjust slot stakes and the clear notice of our intention to introduce such a change, we will give a minimum of 6 weeks transition period for operators to become compliant with the new rules.’
What about the online gamblers?
If a stake limit for online slots were to be implemented in the UK, it would have a significant impact on UK gamblers. Online bettors will be restricted in the amount they will be able to bet on slots if the new proposals are passed.
By setting a maximum limit on the amount that can be wagered per spin, players would be encouraged to gamble within their means and avoid excessive losses. This would provide a level of protection for vulnerable individuals and help prevent gambling-related harm.
However, in August 2023, licensing solicitorsPoppleston Allenpublished an analysis of the white paper and claims that DCMS data showed that the majority of players rarely stake above £10, with stakes above that amount contributing to approximately 2.6% of the total GGY generated by slots. From that point of view, it seems the majority of players won’t be affected by the larger stake limits as they often place wagers with a lesser stake.
While the aim of a stake limit is to help prevent excessive gambling and reduce the risk of problem gambling, some bettors could find the stake limit frustrating, especially those who enjoy high-stakes gambling. It could limit their ability to place larger bets and potentially reduce the excitement and thrill they experience while playing online slots.
Limiting the stake could also mean it is difficult for gamblers to enhance their gaming experience.
What’s more, when it comes to finding the best online casino to match a player’s preferences and betting needs,it’s important they look at a range of platforms in order to compare them thoroughly. This way the different stake limits can be assessed and gamers can make an informed decision on which platform to game with.
Overall, the impact of a stake limit for online slots on UK gamblers would depend on individual preferences and gambling habits. While it may promote responsible gambling, it could also limit the freedom and excitement that some players enjoy.
Final thoughts
So, online casinos could face tougher restrictions under government proposals to overhaul Britain’s gambling laws and the gambling landscape in the UK could look very different come the first few months of 2024.
The government intends to modernize the regulation of the gambling sector with planned measures that could limit bettors' gambling experience.
If the stake is limited in the first few months of 2024, that could hinder players from enhancing their gaming experience. Gamers between the ages of 18 and 24 could also be restricted in how much they can game owing to the possible change in regulations. Features like free spins and loyalty bonuses can enhance a player’s gameplay and so any restrictions could dilute the pursuit.
For those reasons, it is important any changes strike a balance between player protection and maintaining a competitive and thriving online casino market. Any stake limit should be carefully considered and based on thorough research and consultation with industry experts, regulators and stakeholders.
This article was written in cooperation with BAZOOM
