The introduction of the Gambling Act 2005 set the framework for multiple online casinos to develop and ensured that players were protected and could play without the worry of being taken advantage of.
This protection is necessary considering that in 2022, 18% of adult gamblers (age 25 to 34) play online—the same volume that visits brick-and-mortar casinos. In 2019, this was vastly different, as more than 24.4% played in physical casinos. Market trends like these have highlighted online casino growth and how players have moved online to enjoy gambling.
With so many players using online websites, the UK Gambling Commission is under pressure to ensure that each site operates correctly. This commission’s responsibility is to ensure that sites operate under specific frameworks and issue gambling licenses accordingly.
However, with so many changes happening in the gambling landscape, new rules and regulations are constantly being implemented to protect players from harm.
One of the biggest threats to how online gambling firms operate today is the revision of the 2005 Gambling Act. The revision of this law, which took place between December 2020 and March 2021, proposed new regulations to which these firms would need to adhere.
The most notable change to the Act is the incredibly staunch affordability checks that are rumoured to be enforced should the revisions be accepted.
Under these new rules, online casino operators must complete thorough affordability checks on all players wishing to register an account. In practice, online operators would no longer be able to allow players to register an account and begin playing almost immediately.
Instead, players will need to register an account and submit numerous documents to prove they have the financial means to gamble. These documents could include bank statements, pay slips, or personal budget documents. The online operator will then need to use these to identify whether the player can afford to gamble.
Should the player have the means to play, their player account may be granted and opened. However, if the player fails to meet specific affordability criteria, the website will be forced to reject their request to open an account.
While this is undoubtedly a good thing to protect players, the logistics of this suggestion have caused plenty of arguments over the additional work and delays that the regulation would cause. Thankfully, the finalisation of the review of the Act has been delayed due to the COVID-19 pandemic. Therefore, the House of Lords has not yet accepted any revisions.
Aside from changes to the Gambling Act 2005, there have been many changes to the requirements of the UK Gambling Commission (UKGC) in 2022. These requirements are the framework of rules that online casinos need to abide by to gain a gambling license from the prestigious regulator.
Due to the increased number of problem gambling cases reported, the UKGC decided to revise rules regarding how casinos engage with players regarding self-exclusion and gambling problem assistance. The framework for these new rules was proposed in June 2022, with the rules officially coming into effect on September 12 of the same year.
Under the new framework, online operators must monitor players’ spending and play trends individually. These metrics include the amount of time played and the amount of money deposited, lost, and won.
Suppose the metrics of a player fall within specific pre-defined criteria. In that case, the casino will need to flag their account and take remedial action to assist the player from falling deeper into gambling addiction.
More than this, these new rules will also limit the way the website can engage with the player. For example, should a player account be flagged under the new metrics, online casino websites will no longer be able to offer these players certain opportunities.
The restriction on opportunities includes specific bonuses, promotions, or incentives that could entice the player to spend more time in the casino. The loss of the ability to draw players back to play is a significant blow to any online casino.
If the new regulation that online casinos are forced to abide by isn’t enough, the UKGC has also tightened reigns on casinos that have existing licenses. 2022 has been a record year for fines due to non-compliance and regulatory failure.
The UKGC fined a minimum of 14 online casino operators in 2022. While the majority of these fines have been relatively small, some have been historical, and one has been the largest fine ever issued by the regulator.
The fine that holds this honour was levied against the Entain Group for £17 million. Issued due to failure to maintain anti-money laundering (AML) and social responsibility (SR) protocol, the fine set the tone for how the commission plans to deal with online operators in the future.
While online gambling is still an enjoyable pastime that many Brits enjoy, the government and UKGC are trying to change how easy it is to play on these websites. With new regulations recently put into effect and many more still in the pipeline, online gambling firms in the country should be watching the landscape of gambling very closely.
Hopefully, any new regulations will help protect players without taking away the convenience and usability of online casinos. Any rules or laws that do this will threaten to diminish an industry that, otherwise, has appeared to grow from strength to strength.
