UK GAMBLING ACT WHITE PAPER
However, the white paper acknowledges that there is a wider system of protections in place for online gambling that, taking an ‘equitable approach’ to product regulation, may justify a higher limit for online products. The Government has, on that basis, proposed to consult on a range of limits from £2 to £15, along with a separate ‘preferred’ limit of £2 for 18-24 year olds. Notably, however, the Government also indicates that evidence of an association between higher staking on slots and risk of harm justifies action ‘on a precautionary basis’. A ‘precautionary’ policy approach centres on the idea that caution should be taken where there is the potential for harm to be caused, despite there being a lack of conclusive evidence. This approach is regularly invoked by policy makers to protect the public from potential harm. There is, however, a risk that the lack of conclusive evidence on the potential for harm in this case may lead the Government ultimately to adopt a disproportionately low maximum stake. It is vital that respondents to the consultation on stake limits provide persuasive data analysis and other evidence to ensure that the ultimate decision is not made on a purely precautionary basis. The effect of online stake limits, wherever the ultimate decision lands, is clearly going to be significant. The white paper cites Morgan Stanley and NERA estimates that a £2 limit would
reduce online slots GGY by 22 percent or 23 percent. The Government itself estimates that a limit set at £8.50, a midway point of the range of limits proposed, would reduce online slots GGY by between four percent and six percent. Combined with the impact of financial risk checks, the Government estimates a total decrease of between 8-14 percent in GGY for all online gambling products. An impact assessment is due to be published alongside the DCMS consultation. This should be considered carefully by operators, alongside their own data, to help frame responses to the consultation. Longer term, one question is whether the consultation might include the possibility of future reviews of stake limits. Under the 1968 Act, triennial reviews of land-based stake and prize limits were carried out – in part to ensure that the limits kept up with inflation. There are strong arguments to be made against stagnant stake limits which would continually increase the impact on operator revenue in the years to come. The white paper acknowledges calls for the reinstatement of such reviews, but does not make any specific proposal in respect of the same. A further significant feature of the white paper is its policy approach to young adults; it proposes lower stake limits and financial check thresholds for 18–24 year olds. This approach
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