What further changes can we expect to gambling legislation this year?

The UK has been discussing an update to the gambling rules for several years now, but the meeting keeps getting delayed. This latest wave of discussion follows some changes that have already trickled into law, but this latest review promises to be the biggest yet; if it ever takes place as promised.

Why legislation needs to change

Legislation within any industry is designed to make sure things run fairly and smoothly, however, the rules in place can become outdated. For example, when gambling rules were first introduced in the UK online gambling wasn’t in existence, so the rules put in place then did not take this into account. If legislation wasn’t updated then it wouldn’t take into account things like mobile gaming, credit cards and even age verification for its users – so it is important that gambling legislation is regularly reviewed and updated to take into account current gambling trends.

Changes we have seen to gambling legislation

Over the past few years, there have been new restrictions on the amount that someone is allowed to bet in one transaction on Fixed Odds Betting Terminals (FOBTs), a ban on credit cards being used to deposit on bookmakers' websites, and the rules around age verification were tightened. With all of this already in law, what’s next for the betting reform?

What changes can we expect?

One of the biggest areas for reform will be bookmakers’ ability to advertise. Currently, advertising gambling websites on TV or radio before 9pm is banned. However, there is a decade long precedent of gaming companies using a well-known loophole to advertise at popular sporting events. By sponsoring pitch hoardings or team uniforms, gambling companies are able to get their logo seen by millions of people who already have an interest in sport and could be encouraged to place a bet. This has been widely criticised by the general public and has even led to protest marches around the country. The current plan in the new legislation is to introduce a ban on gambling companies advertising on team uniforms. However, no mention has been made of sponsoring stadiums or pitch hoardings - a lot of critics have argued that this makes the ban on uniform advertising totally useless.

The encouraging of responsible gambling

Another big part of the gambling reform will focus on loyalty schemes and memberships. VIP programmes are commonly offered by bookmakers and casinos to reward customers who repeatedly spend money with them. VIP schemes were mentioned specifically in points that the reform will consider, as research has found that a lot of problem gambling and fraud cases stem from VIP players. Loyalty schemed where you earn points or perks for repeatedly gaming with one company have not been explicitly mentioned, but it’s likely that some of the loyalty schemes will face restrictions alongside VIP schemes. The government has hinted at heavily regulating these schemes or potentially banning them all together. Increased regulation would force gaming companies to provide more clarity on the fact that VIP schemes involve spending a certain amount of money.

Responsible gambling tools have been a big part of government reforms in the past - most UK bookmakers voluntarily added customer protection tools to their websites. These include deposit limits, activity warnings, loss limits, time limits and product exclusions. The optional tools are offered to all customers in an effort to reduce problem gambling. It’s likely that we could see increased protection regulations, such as these tools being automatically applied with an opt-out button, and being encouraged to share data between operators in an effort to keep customers safe. There could also be a new reduced limit on the maximum bet size per transaction, a ban on “childish imagery” and mandatory limits on gaming time.

Not all new regulations are focused around reducing gambling addiction - some of the tools are focused on protecting customers from a financial standpoint. One of the big changes to be considered is a deposit protection scheme. Currently, if a company goes into administration, all money in the accounts is seen as company assets, which means the player loses out. New laws could force bookmakers to hold customer money in a separate account, similar to deposit protection schemes that are seen on the property market. Other points for discussion will focus on how companies are structured in an effort to further legitimise large corporations. There could also be new rules around what happens when a company goes bankrupt, in order to further protect customers.

What does this mean for the industry?

There are a huge number of points to consider in the UK gambling review, and far too many to cover today. There could even be hints that the UK Gambling Commission will be wound down and replaced with a governing body that has more power to make changes, rather than just regulating existing rules.  Most gambling operators are used to the changes rules and regulations and likely have many things in place that will cover the rules that are due to be introduced. For example, a site like an instant withdrawal casino will already have key security and KYC measures in place and so may not be affected by any new rules that are put in place. However, when the legislation review does take place it is important the industry as a whole listens and actively makes any recommended changes as soon as possible.

That said, it is hard to say with any real certainty what changes are likely to be introduced, when the review will happen and when any changes recommended will be put into place. Those within the industry may feel as though the changes will never happen as this is a discussion that has been going on for an extended amount of time.

The gambling legislation review has been repeatedly pushed back over the past few years, but it’s such a large legislation review that it’s understandable. When it is eventually discussed in parliament, get ready for a big shakeup.

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