By James Simons-
Online casinos will face tougher restrictions under government proposals to overhaul Britain’s gambling laws, but the majority of measures will be subject to further consultation, signalling even more delay to long-awaited changes.
A white paper arising out of a review launched in 2020, is due to be published on Thursday, after being postponed multiple times.
Ministers will unveil plans intended to make gambling safer, following a string of high-profile cases where customers have suffered huge losses or taken their own lives.
The new laws are part of the government’s ongoing efforts to protect vulnerable individuals and communities from the harmful effects of gambling.
Under the new laws, online casinos and other gambling platforms will be required to carry out stricter identity checks on their customers before they can start gambling. This will help to prevent minors and vulnerable individuals from accessing gambling products and reduce the risk of problem gambling.
In addition, the government has announced that it will be introducing a new ombudsman to oversee the gambling industry and ensure that gambling companies are held accountable for any harm caused by their activities. The ombudsman will have the power to investigate complaints and issue fines and other penalties if necessary.
The government has also announced that it will be increasing the maximum stake on fixed-odds betting terminals (FOBTs) from £2 to £50. FOBTs have been a controversial issue in the UK, with many campaigners arguing that they encourage excessive gambling and contribute to problem gambling.
The planned new laws have been welcomed by many campaigners and gambling support groups, who have been calling for tougher restrictions on online casinos and other gambling platforms for many years. They argue that the gambling industry has been allowed to operate with too much freedom and that tougher laws are necessary to protect vulnerable individuals and communities.
However, some critics have argued that the new laws do not go far enough and that more needs to be done to tackle problem gambling in the UK. They argue that the government should be doing more to educate people about the risks of gambling and to provide support for those who are struggling with problem gambling.
Overall, the new laws represent a significant step forward in the government’s efforts to tackle problem gambling in the UK. They demonstrate that the government is taking the issue seriously and is committed to protecting vulnerable individuals and communities from the harmful effects of gambling. However, more needs to be done to ensure that the UK has a safe and sustainable gambling industry that operates in a socially responsible manner.
Expected Proposals
Proposals expected in the white paper include a 1% mandatory levy on industry revenues.
Online slot machine stakes limited to between £2 and £15.
Measures to slow down online casino games.
Looser restrictions for land-based casinos.
Government-run safer gambling campaigns.
“Light-touch” affordability checks.
Affordability Checks
Some of the most hotly contested measures, including affordability checks for punters making big losses, curbs on digital marketing and the exact level of stake limits of online slot machines, are expected to go out for further consultation, amid a legislative backlog in parliament.
Iain Duncan Smith, the former Tory leader who chairs a cross-party parliamentary group examining gambling harms, told the Guardian he was concerned about the white paper, warning that putting out so many measures to consultation was “tantamount to doing nothing”.
It is understood that there has been no decision on limits for stakes on online slot machines games, which are currently unlimited despite carrying some of the highest rates of addiction of any gambling product.
The consultation is likely to propose limits of £2 for under-25s, in line with the cap for customers of all ages on shop-based fixed-odds betting terminals (FOBTs). Older players may be allowed to bet up to £15 per spin but the exact levels will be decided at a later date.
On affordability checks, which campaigners say could stop people suffering financial ruin, the government is understood to be leaning towards a light-touch option, which would see firms perform credit checks when customers lose a certain amount.
Lobbyists for the £11bn-a-year industry have campaigned hard against tougher checks that would require operators to demand proof of earnings.
Ministers are expected to ask the Gambling Commission, the industry regulator, to consult on when and how to perform such checks. An early draft of the white paper envisaged doing so for punters who lose £1,000 in a day or £2,000 over 90 days.
Curbs on digital marketing, such as promotions sent to customers offering “free” bets or bonuses, are also set to go to further consultation.
Two sources with knowledge of the discussions said a “legislative backlog” in parliament, partly due to measures required as a result of Brexit, made it impossible to introduce new curbs on marketing without a potentially lengthy consultation process. Advertising is not expected to face any new restrictions in the white paper.
In a letter to fellow ministers, the culture secretary, Lucy Frazer, said any drop in industry revenue as a result of the measures “will be the foregone income from people gambling unaffordably,” the Times reported.