Game design
and so forth. Historically, it could be argued that online casino games were exempt from this. Recently, however, a new form of casino gambling has emerged – “must be won” slot games. These timed slots have jackpot values that must be won by customers within a given time period (e.g. within an hour, by midnight, etc), creating a new dimension for regulators to consider going forward. Again, at this stage it is unknown whether these new games are simply innovative concepts in a competitive market that are expanding consumer choice and quality, or whether the use of scarcity leads to demand that is potentially harmful, but it is another example that is perhaps demonstrative as to why the CMA cites gambling so often in its report.
the fair use of digital tools if these are deemed to break the law. It will also be undertaking a programme of work that seeks to raise business and consumer awareness of these practices. More practices, deemed automatically “unfair” in all circumstances, could be restricted or prohibited. Banning or restricting the use of OCA practices could be incorporated into the Digital Markets Unit’s enforceable codes of conduct or pro- competitive interventions. The unit, set up within the CMA to promote competition in digital markets, will be given statutory powers. References UK Competition and Markets Authority, Online Choice Architecture, Discussion Paper (April 2022) UK Competition and Markets Authority, Evidence Review of Online Choice Architecture and Consumer and Competition Harm (April 2022), Department for Business, Energy & Industrial strategy, Consultation outcome. Reforming competition and consumer policy; government response (Updated 20 April 2022). Newall, Philip, Dark Nudges in Gambling (2019) Kahneman, Daniel and Tversky, Amos, Judgement Under Uncertainty: Heuristics and Biases (1974) Advertising Standards Authority, Ruling on Skill on Net Limited (May 2022) GB Gambling Commission, Customer interaction: formal guidance for remote gambling operators (June 2022) Kumar, Satish; Behavioural Biases in Investment Decision Making – a systematic literature review (2015) The Consumer Protection from Unfair Trading Regulations (Statutory Instrument No. 1277, 2008)
Further consideration – vulnerability
Before moving to conclusions, it is worth noting the CMA’s comments on vulnerability (with vulnerability also being a hot topic at the UK Gambling Commission – for example, see the recent customer interaction guidance). It notes that OCA practices can disproportionately affect vulnerable customers, and that: “OCA practices used by businesses that rely on repeated engagement, such as gambling or gaming, can be particularly harmful for people at risk of addiction or who are less able to make good decisions, for example, because of age or health.” What’s next? The CMA has pledged to investigate harmful OCA practices ‘more actively’, using a full range of powers and tools available. The stronger enforcement powers in consumer protection mean that the CMA could take more consumer protection work and will be able to impose fines on companies breaching
Adam Rivers is a microeconomist at KPMG where he leads the firm’s consulting work in betting and gaming. He can be contacted at Tel: +44 207 6941376 Email: adam.rivers@kpmg.co.uk
Jurate Markeviciute is a microeconomist at KPMG specialising in competition and consumer economics.
32 • IMGL Magazine • July 2022
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