Recommendations from the British government's white paper on gambling
The United Kingdom's government has finally released its long-awaited white paper of draft policy recommendations as part of its initiative to significantly reform the country's current online gambling laws and foster a safer and more responsible environment.
The recommendations, which will be subject to consultation, were unveiled on Thursday by Lucy Fraser, the Secretary of State for Culture, Media, and Sport. They represent the biggest shake-up of the industry since the passage of the Gambling Act of 2005, when the majority of its earnings came from physical locations like casinos, racetracks, and betting shops.
Current issues
According to Fraser, the country's current regulations are insufficient because they have created an environment where addiction has "wrecked lives" and resulted in "shattered families, lost jobs, foreclosed homes, jail time, and suicide." British gambling companies now receive about two-thirds of their revenue from mobile and online activities.
“These are all the most extreme scenarios but it is important we acknowledge that for some families those worst fears for their loved ones have materialised,” Fraser explained.
“Gambling problems in adults have always been measured in terms of money lost, but you cannot put a cost on the loss of dignity, the loss of identity and, in some cases, the loss of life that it can cause.
“We need a new approach that recognizes a flutter is one thing, unchecked addiction is another. So, today we are bringing our pre-smartphone regulations into the present day with a gambling white paper for the digital age.”
Since the foundational review was started by then-Culture Secretary Oliver Dowden in December 2020, the publication of these proposed changes has been delayed at least four times. In contrast, the British government uses white paper policy documents to outline its recommendations for future legislation.
Slot Scenario
One of the main recommendations in the government of Prime Minister Rishi Sunak's white paper could result in the introduction of online slot machine stake limits ranging from £2 to £15 per spin.
However, some of the most well-known operators in the nation, such as Flutter, the company behind the Paddy Power, SkyBet, and Betfair brands, have already implemented a maximum £10 threshold as of September 2021.
Online gamblers between the ages of 18 and 24, who Fraser called a "particularly vulnerable cohort," could also have this proposed cap reduced even further, or they could be subject to individualized caps based on their level of risk.
According to Frazer, the government will take additional measures to "protect children" by preventing them from having access to any type of gambling, "whether online or on widely available scratch cards."
A mandatory affordability check would be implemented for anyone who loses £1,000 in a day or £2,000 over the course of 90 days, according to the white paper.
Additional Support
Another proposal in the white paper would impose a levy on domestically licensed gambling companies that would fund programs for addiction research and treatment with an amount of their revenues that has not yet been determined.
Although Fraser declared that such a program would be crucial in assisting in reducing a rise in gambling addictions brought on by the ubiquitousness of technology that has placed "Las Vegas on every phone," it is still unclear how this funding is to be managed.
Although the white paper's recommendations do not call for any new advertising restrictions, they do support the potential rollout of new safer gambling campaigns run by the government and a consultation on how to slow down the speed of online slots using features like quick games.
Goal Alignment
In an effort to level the playing field, physical casinos may benefit from some of their rules being relaxed, while the white paper proposals may result in tighter regulation of online gambling.
Fraser said the proposals might result in the government soon allowing gaming machines at land-based casinos to accept debit cards and allowing smaller gaming establishments to quadruple the number of machines they have, up to a maximum of 80 units.
Evaluation of Inertia
However, Louise Davies from the Christian Action Research and Education (CARE) problem gambling charity criticized the government for intending to put these proposals out for further consultation, despite the fact that many online operators, including Kindred Group and Entain, have welcomed the new white paper ideas.
