The UK gambling market once had the reputation for being one of the most liberal gaming markets in the world and this played a major role in helping the land based and online gambling industry in the UK to grow in leaps and bounds.
However, things have changed considerably in the last couple of years as the UK government along with the UK Gambling Commission (UKGC) has decided to crack the whip on the gambling operators by passing new regulations that restrict their liberties and force them to toe the new line.
One could argue that ever-increasing regulation is impacting civil liberties as both UK gambling operators and UK players are impacted by these new regulations. It has become a lot harder to find quality online gambling websites in the UK but thanks to independent portals such as Nodeposit365, players in the UK can still find a reliable source of quality iGaming websites.
New Changes In Gaming Regulations
The UK Government decided to push for a number of changes to be made to gaming regulations. Some of these changes have been welcomed by gambling operators and some have been resisted as gambling operators have labeled them as too excessive and drastic. We take a look at some of the new changes in gaming regulations.
FOBT Stake Reductions: The UK government made a controversial decision when it decided in 2018 to reduce the stakes of fixed-odds betting terminals (FOBTs) from £100 to £2. The decision was made because reports showed that FOBTs were the biggest attraction for UK gamblers and caused them to spend loads of money, often money they did not have.
Layoffs expected due to the new 2 Pound limit on FOBT
FOBT machines were big earner for gambling firms and contributed to more than 50 percent of their gross revenues. The UK government plans to implement these new restrictions before the end of 2019 and as a result, UK gambling firms are expected to lose combined revenue of over £900 million.
Increase In iGaming Taxes: While anti-gambling campaigners in the UK welcomed the decision to reduce the odds of FOBTs, they also faulted the government for not taking into consideration the iGaming industry. Anti-gambling groups pointed out to the fact that online gambling is as bad as, if not worse than FOBTs.
The UK government decided to increase online gambling taxes from 15 percent to 21 percent in an effort to regain some of the lost revenue from FOBTs. However, it is moves like this which not only hurt FOBT operators but also iGaming operators.
The UKGC has also decided to impose stiff penalties to iGaming operators who violate online gambling laws in the country. The gaming regulator collected £14 million in total penalties during late 2018 after three iGaming operators (Daub Alderney, Videoslots and Casumo) were hit with fines. CZ Holdings decided to drop out of the UK market after the gambling watchdog carried out a license review. Another 15 iGaming operators have received letters from the UKGC and 6 of them remain under investigation.
Gambling Advertising Limitations: One of the major hurdles that gambling operators are currently facing is the restrictions that have been imposed on gambling advertisements. LeoVegas, a popular online casino in the UK was slapped with a £600,000 fine in 2018 for a number of violations related to gambling advertisement.
The online casino reportedly had 41 online advertisements (including advertisements from their affiliates) that misled players by not clearly highlighting certain limitations. The Committees of Advertising Practice (CAP) also issued a new set of guidelines that cut down the freedom that iGaming operators once enjoyed in running promotions and bringing in new players.
Reasons For Stringent Gaming Regulations
There are a number of reasons why the UK gambling watchdog decided to impose more stringent regulations on the gambling industry. Here are some of the key reasons:
Problem Gambling Epidemic: The UK is facing a massive increase in the number of problem gamblers and this is one of the main reasons why FOBTs had their stakes reduced. Stats show that 1.4 percent of all gamblers in the UK end up having a gambling addiction and 11.5 percent of FOBT players end up with a gambling addiction.
Those numbers make more sense when you realize that stats show that more than 300,000 Brits display symptoms of problem gambling and another 540,000 show moderate symptoms of problem gambling. Top UK MPs have criticized the current government for being too slow to react and impose measures to curtail and address the issue of problem gambling.
Underage Gambling: While problem gambling poses a major problem in the UK, the increase in underage gambling serves as a bigger threat. A BBC report in 2018 showed that the number of underage gamblers in the country had quadrupled in the last couple of years.
The UKGC found that both online gambling websites as well as pubs with FOBT machines did not have proper procedures in place that prevented underage gamblers from placing bets. The gambling watchdog has pulled up gambling operators who have targeted younger audiences by advertising their products and services during sporting events.
This 400 percent increase in underage gambling has proven to be a major concern for both parents and the government.
UKGC Will Continue To Tighten Regulations
The UKGC is investing heavily into NHS specialist clinics to treat problem and underage gamblers. They are also encouraging gambling operators to step up their efforts in educating their players about the risks and signs of problem gambling.
iGaming operators have been given clear instructions to have their self-exclusion tools readily available and to keep players aware of the problem gambling resources that are available at all times.
It is clear that the UK government along with the gambling watchdog will continue to tighten the screws on the gambling industry in an effort to bring more accountability and stability to the market. Only time will tell how successful these new regulations turn out to be. In the meantime, gambling operators in the UK will have to toe the line and ensure they remain fully compliant at all times!
