UK Takes Aim at Problem Gambling with Regulation Updates
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The last time the U.K. issued gambling regulations, the iPhone hadn’t been invented.
Since then, advances in technology and an increase in betting among the public have rendered the country’s 2005 Gambling Act outdated, the British government said in a white paper
It includes proposals designed to tackle problem gambling, including limits to the amounts consumers can wage, a crackdown on unlicensed operators and a levy on gambling companies to fund treatment for people with gambling addictions. The paper estimated that 300,000 Britons have gambling problems defined as disruptive to their lives and another 1.8 million are at risk.
In the introduction to the paper, Lucy Frazer, Secretary of State for Culture, Media and Sport, said the government does not wish to hold back “sustainable and properly regulated” gaming operators.
“What we will not permit is for operators to place commercial objectives ahead of customer wellbeing so that vulnerable people are exploited,” Fraser wrote.
The government is undertaking this effort when online gambling is swelling, particularly in the area of online sportsbooks, as reported here last month.
The legalization of online sportsbooks has mainstreamed the industry, with 20% of Americans estimated to have placed a bet on this year’s Super Bowl.
And findings from market research firm Insider Intelligence projected the total amount of money wagered via retail sportsbook, online sportsbook or lottery parlay card will rise 45.% this year to $136.63 billion, exceeding $100 billion for the first time. The report says double-digit growth will continue, surpassing $200 billion in two years.
“Given the expected meteoric rise of online sportsbooks, market watchers worry it’s opening a new vector for cyberfraud on a potentially colossal scale, and those in the ecosystem could be getting out over their skis by going live without adequate security protecting billions in transit, either as pay-in wagers or payout winnings,” PYMNTS wrote.
Meanwhile, the infrastructure of betting might have changed, but gamblers still wish to get paid the same way they always have: as fast as possible.
“This is such an expectation that consumers filed around 2,400 Better Business Bureau complaints in recent years against the country’s three largest sports betting providers regarding the speed of which winning withdrawal requests are satisfied,” PYMNTS wrote recently.
Online sportsbooks recognize this consumer demand and consider instant or near-instant payouts essential to their profitability.
Contributing to a recent PYMNTS report, DraftKings explained the importance of secure payment speed to its business model:
“The speed of payments is crucial in the gambling industry. Customers want faster payouts. In fact, the speed of payments is so important that it can be a differentiator for customers choosing between gambling operators.”
