New Rules Announced by Gambling Commission and Betting and Gaming Council

The new rules will bring a series of operational challenges for organisation in the industry.

The implementation of new gambling rules will include risk assessments, vulnerability and affordability checks, and age verification. These are designed to further promote a safer and more regulated gambling environment in the UK market.

Specific Issues Addressed

The measures will include tweaks to online gaming products such as the removal of Autoplay, Turbo, and Slam Stop features, longer spin speed durations and limits on multi-game play.

Whilst this is purely on a pilot basis, the UK industry is expected to roll out such regulations permanently by January 2025.

Furthermore, a new code of conduct is being implemented that will see new financial documentation checks on players wishing to spend large amounts of money on a monthly/yearly basis. The proposed figure is in the region of £5,000 per month, or £2,500 for those aged between 18-24.

The introduction of more stringent measures will have significant effects on operators, such as potentially increased compliance costs and potential loss of revenue in short term.

Challenges and Benefits for the Industry

Whilst the rules are designed to ultimately contribute to a more sustainable and responsible gambling industry, they will undoubtedly bring about a series of operational challenges. Organisations active in the market will face increased limitations and less flexibility that may hinder growth and innovation.

Michael Dugher, Betting and Gaming Council CEO commented on the measures:

"This Code is good progress towards solving an issue that has generated such heated public debate. It will significantly increase the consistency of safer gambling standards while removing intrusive document checks for many who are currently subject to detailed checks.

This should be particularly welcomed by British horseracing.

It is vital to note that this new Code sits on top of a host of other safer gambling measures our members already conduct, and which only exist in the regulated sector.

While this is good progress in the right direction, we are acutely aware more needs to be done.

So I wish to see a new Code on Anti-Money Laundering Checks to complement this Code on Customer Checks to further raise standards on consistency and reduce the disproportionate need for document requests, rightly ensuring that betting with our members remains free from crime."

Quotes from Officials

Andrew Rhodes, Gambling Commission CEO commented on the new rules:

“As a gambling regulator, it’s vital that the introduction of new rules is based on evidence and takes into account the views of consumers and other interested parties.

We have listened to the views expressed in our engagement and the consultation responses, and we have made changes while still ensuring that we deliver meaningful protections.

We are also pleased to be taking forward a pilot of financial risk assessments and data collection, which together will ensure that we can make informed decisions about how these assessments can be implemented in a way that supports both consumer freedom and protection.

We have to get the balance right between protecting people from the potentially life-ruining effects of gambling-related harm and respecting the freedom of adults to engage in an activity that the vast majority do so without experiencing harm."

Financial assessments and checks are the main difference of the current rules from the previos.

The introduction of new gambling rules encompasses personal management licence extension, tighter age verification, opt-in direct marketing campaigns, and stronger limits on game-round turnover enhancements.

The industry will also see for the first time financial risk assessments and checks, along with player protections that build on the initial white paper from the UK government.

Reasons for Changes

The reason for implementing stricter gambling measures is to provide more protection for vulnerable individuals and to mitigate the potential for financial problems associated with excessive gambling.

The new rules aim to promote more responsible gambling practices and reduce the potential harms experienced by the most vulnerable age group, particularly individuals aged 18 to 24 years old.

Expected Outcomes

The effects of new tighter regulations include better protection for players, decreased incidence of gambling-related debt, and ultimately contribute to a healthier society by fostering responsible gaming behaviours.

It may have a negative short-term impact on gross gaming revenues from operators within the UK market and there is a concern that consumers may seek black market platforms that are based outside of the country's borders.

The pilot of new responsible and affordability gambling rules for six months will provide valuable insights and data to inform and tweak the implementation of long-term measures in the future.

Future Outlook

Whilst there may be an overall potential negative impact short term, these rules are designed to bring about sustainable and effective player protection measures in the UK gambling industry going forward. Though there will be a percentage of consumers who are discouraged by these regulations, the majority of those who participate responsibly will remain unaffected.