Gambling Reform White Paper 

Whilst the UK Gambling Commission has already taken steps to make gambling safer in the digital age, much bigger changes are on the horizon as the much anticipated new Gambling Act draws closer. The first stage of creating new laws is the presentation of a White Paper to parliament which outlines proposals for reform. This was originally scheduled in for the latter part of 2021 but didn’t in fact happen until 27^th April 2023.

The paper was presented by Lucy Frazer, Secretary of State for Culture, Media and Sport who said that the legal framework within which the gambling industry operates in the UK would be updated to “protect the most vulnerable while also allowing everyone else to enjoy gambling without harm”.

This is the careful balancing act that any regulator must perform. Right now regulation may not do enough to protect the vulnerable, but if new restrictions on spend and attempts to make products safer go too far, then the government risks pushing players who comfortably enjoy a casual bet onto the black market and damaging the industry.

Alongside online gambling the paper also identifies marketing and advertising, the Gambling Commission’s own power and resources, dispute resolution, children and young adults, and land-based gambling as areas for reform.

We are concerned here with what affects online slots players and there are four proposals that stand-out from the paper.

Right now these are not finalised. They have been put forward in consultations to give interested parties, including the public, industry members and charities, the opportunity to comment. And after that, a gambling bill will be presented to parliament and debated in both houses before it is passed.

So, there is some way to go.

Nevertheless, this is the clearest indication yet of how online gambling will look in the future.

1. Stake Limits On Slots Of Up To £15

The proposals look to bring online slots stakes closer to the offline world of fixed odds betting terminals which have a maximum bet of £2. However, the white paper proposes setting different limits for different age groups. The 18 to 24 group who are seen as most vulnerable, would have a £2 stake limit. But those in older age categories would have a max stake of up to £15.

2. Affordability Checks From £125 Losses Per Month

Perhaps the most controversial area for reform is this one. Affordability checks are currently carried out by operators in an effort to prevent customers spending beyond their means. But they have been found by the DCMS to be inconsistent with a lack of clarity around when they should be implemented. So new mandatory checks are being proposed.

The recommendations are for basic soft checks at £125 losses per month or £500 per year to see if a player has indicators of financial vulnerability like a previous County Court Judgement for example. These checks are described as frictionless as they would be carried out behind the scenes using open-source materials and credit reference agencies. Crucially, no direct contact with the player is required for these checks.

Then, for players losing £1,000 in 24 hours or £2,000 over 90 days, more detailed checks would be carried out. These may involve requests for pay slips and bank statements

Where a player is in the 18 to 24 group, the white paper suggests that checks are carried out at 50% of those loss levels.

3. Incentives To Bet And Wagering Requirements

The area of bonuses and loyalty schemes is also under scrutiny in the white paper. Most pertinently for slots players it is expected that significant limitations will be put on wagering requirements, maybe even a complete ban. This will significantly limit the amount that operators can realistically give away in bonus money without putting themselves at risk.

Bonuses with no wagering requirements but caps on how much can be won may become the new norm, as we’ve seen in offers from sites like Play OJO in recent years.

4. Research, Education and Treatment (RET) Mandatory Levy

Finally, gambling operators are likely to face a mandatory levy, proposed at 1% of gross gambling yield annually, payable to the UK Gambling Commission to fund Research, Education and Treatment. This would replace the current voluntary system whereby operators pay whatever they choose to pay.

Why does that matter to you as a player? Because anything that impacts the gambling firms bottom line can potentially be passed onto the player through lower RTPs and less value from bonuses.