A white paper to review UK gambling law becomes public in 2023, with a focus on imposing tougher regulations on gambling operators.
Unsurprisingly, this release assures players that they are safe as long as they gamble on regulated platforms. Other means of tackling gambling addiction have also been suggested, such as changing affordability rates, reviewing the concept of free bets, etc.
It has been more than a year since this law was passed, and from observation, operators are having difficulty adapting to the new regulations. This seemingly harmless white paper affected everyone. It touches land-based operators, horse racing, and even online casinos Betway Casino. No one is above the law. After all, the goal was to impose maximum standards, but that may have happened too quickly.
However, we will explore the difficulties the gambling industry has faced since the introduction of this policy.
An overview of the latest gambling regulation issued by the UK government
the white paper The UK Government’s recommendations were 268 pages long. Obviously we won’t discuss everything here, so here’s a quick summary of the regulatory changes:
- Players aged between 18 and 24 can bet a maximum of £2 on any bet.
- Deposits of £500 or more must be subject to checks by the operator. By February 2025, this limit is expected to reach £150.
- Operators must confirm player age and identity before allowing deposits or access to demo games.
- Policy issues rethink free bets, bonuses and Wagering requirements. It also includes stricter regulations on the means of promoting free bets.
- If a gambler loses up to £1,000 or £2,000 within 24 hours or within 3 months respectively, the operator must carry out easy affordability checks.
All of these and more are the policy changes that come with the UK Gambling White Papers Act.
Challenges of this regulation
Now, let’s look at the challenges that come with it. Here are some of them in depth.
License and liability
All gambling operators must obtain a license from the UK Gambling Commission. To obtain this license, they must have met the requirements of anti-money laundering schemes, fair gaming practices, financial stability, etc.
The problem is that meeting these standards requires allocating funds to conduct background checks on each player. This can take a long time and require a lot of capital, especially if the operator is a big name with a large number of users.
The high cost of compliance
Another consideration is the expenses that come with compliance. Due to these regulations, gambling platforms have to spend more on investing in things like:
- Approved technical solutions
- Legal experience
- Training employees to put them on the right track
All of these things are necessary in order not to violate the law.
Find a compatible payment solution
Due to the need for background checks for high gambling players, gambling platforms must partner with a compatible payment company. This can be especially difficult when providing services to international clients. Therefore, casinos and sports betting should work with international payment processors that have a deep understanding of the industry.
However, this is a hot topic because gambling operators have to evaluate a player’s financial situation. Only then can they determine whether they tend to become addicted to gambling.
Balancing regulatory requirements and player retention
This is another challenge that comes with recent reforms in the UK. Due to affordability and other background checks, players are starting to feel violated by extensive scrutiny. The fear now is that the gambling industry may see a sharp decline in the number of people playing casino games or betting on sporting events.
This burdens every gambling operator to prove to their users that their information remains safe.
Potential decline in gambling revenues in the region
Considering how the number of gamblers has declined on both online and land-based platforms, it is only natural to expect a significant decline in UK gambling revenues. For example, a recent report stated that approximately 57% of players in the UK would stop or reduce gambling if they had to undergo these checks. So annual revenues will decline just as much, if not more.
conclude
The UK government certainly has the players’ interests in mind, but it may need a bit of evaluation. Just as it has positive aspects, it also brings some challenges that are difficult to ignore. But will they act on it? We can’t say for sure. We just have to keep looking at what will happen in the near future.