UK GAMBLING ACT WHITE PAPER
will bring regulation into line with the Commission’s existing view (which has fed into its enforcement action in recent years) that young adults are more likely to be vulnerable, and is likely to have a ripple effect on gambling regulation in the years to come. Online protections: Where does the UK stand on the global stage? The introduction of financial risk checks for consumer protection purposes is unusual among regulated markets. Most regulated jurisdictions in Europe do not require financial risk or ‘affordability’ checks for individual customers, though some do enforce, for example, blanket mandatory deposit or loss limits. In that sense, the Commission is tasked with consulting on a novel method of protecting customers, with the accompanying risks of overreach and unintended consequences – although the proposals are not far removed from the approach to customer affordability that the Commission has been enforcing (with limited legal justification) for several years. Low stake limits are also uncommon, though they do exist – German regulations mandate a €1 stake limit per spin on online slots, for example. Regulators globally will be watching with interest to see where the ultimate policy decisions land, and the extent of the impact of those decisions on customers and the industry in the UK. Of additional interest is how changes in the UK may impact other regulated markets. Three of the most recent jurisdictions to establish online gambling licensing regimes – the Netherlands, Sweden, and Germany – also have some of the most stringent responsible gambling regimes. This points to a pattern of emerging regulated, or soon to be regulated, markets, adopting stricter social responsibility requirements, particularly as new regimes will be focused on the potential risks associated with online gambling. Changes to UK regulations are therefore likely to have an impact beyond our borders. Regulatory standing & consumer redress The Commission’s powers and global standing The Commission has an ambition to be regarded as a global leader in gambling regulation and Tim Miller (Executive Director of the Commission) recently spoke about the need for the Commission to work more closely with other regulators “in lock step across international borders.” However, the white paper indicates that the Commission does not yet have sufficient resources to achieve its regulatory objectives
in Great Britain. The white paper has sought to enhance the Commission’s position in several ways: • The Government believes that the ‘black market’ accounts for around 2.5 percent of remote gambling in the UK. The Commission has previously commented that ‘black market’ risks to the regulated sector lends itself to increased cross-jurisdictional cooperation, for example where two or more regulators can take coordinated regulatory action for illegal activity in one regulated jurisdiction to have regulatory consequences in another. In Great Britain, the Commission can currently only request third party service providers (for example, ISPs and payment providers) to cease to provide their services to ‘black market’ operators, whereas the Government proposes to legislate to give the Commission powers to require third parties to stop providing such services. • The Government will consult on the introduction of a statutory levy to be paid by operators to the Commission. The levy will be used to support research into the prevention and treatment of gambling-related harms, and this increased research will indirectly assist the Commission in its regulatory remit to protect vulnerable persons from being harmed or exploited by gambling. While the largest four operators already make significant voluntary contributions in this regard to the independent charity GambleAware, the Government wants to ensure that this funding is subject to greater Governmental control. • The white paper states that the Commission intends to start collecting more data from operators and invest in its data systems, to develop a more active method of monitoring regulatory compliance by operators. However, the Commission acknowledged in its Evidence Gaps and Priorities programme (published in May 2023) that there are currently gaps in its approach to ensuring that regulatory change is supported by appropriate evidence. The Commission has introduced a three- year programme to address such evidence gaps, however this raises some concern that the output of the white paper may not be satisfactorily evidence-led, culminating in a precautionary set of regulations, which may be difficult to revise in the future. • The Government intends to review (and possibly increase) the Commission’s licence fees during 2024. The conclusion that can be drawn from these proposals is that the Commission has requested a significant increase in its resources, which it hopes will enhances its reputation as a global leader in gambling regulation, particularly in the context of tackling the
PAGE 28
IMGL MAGAZINE | JULY 2023
Made with FlippingBook flipbook maker