IMGL Magazine July 2022

Game design

Digital design, the changing regulatory landscape and implications for the gambling sector Exposure of potentially harmful digital design practices in gambling will place the industry under scrutiny, argue Adam Rivers and Jurate Markeviciute. This article was finalised and received prior to the Behavioural Insight’s Team publication on choice architecture and gambling – which only echoes the need for the sector to understand these issues and act accordingly.

R egulators around the world continue to raise their concerns over digital practices and how firms’ use of data is impacting outcomes on end consumers. As part of that, we’re seeing proposed changes in legislation in the UK and EU that would strengthen regulators’ powers in both consumer protection and digital markets.

influence consumers’ decisions. Its concern is that these practices can potentially lead to harm.

How can digital design harm consumers and competition?

In the UK, the Competition and Markets Authority (CMA) – a body that has recently gained significantly enhanced powers in relation to consumer protection 1 - is increasingly concerned about the impact of certain online practices on consumers. In addition to its cross-regulator work focusing on algorithms 2 , it also published two papers discussing how digital design such as algorithms used to frame choices can 1 https://www.gov.uk/government/consultations/reforming-competition-and-consumer-policy/outcome/reforming-competition-and-consumer-policy-govern- ment-response 2 https://www.gov.uk/government/publications/algorithms-how-they-can-reduce-competition-and-harm-consumers/algorithms-how-they-can-reduce-compe- tition-and-harm-consumers In online settings, businesses design the environment in which customers interact with the website and/or app and make consumer choices – e.g. reviewing racecards, browsing a live casino lobby or playing an online slot game. The way in which these options are presented is often known as the ‘online choice architecture’ (OCA). In this environment, regulators are concerned that

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