A new gambling bill is set to be unveiled in the UK. But it seems like it’s all bad news with this one. What is the situation with gambling legislation? The government is taking a close look at UK gambling laws to see if they can be tightened and even pushed towards the American model.
The UK government have introduced a myriad of new laws that will revolutionize the entire online gambling sector, but it is unclear if they will be enacted. However, the law will presumably force companies operating in the regulated market to adapt their operations to offer more transparency and better customer support. What’s set not to change, though is the use of free bet offers to entice new customers and other welcome offers are staying in place for now anyway.
Eventually, many believe the government is set to address online gambling and ban any forms of advertising that promote gambling. This year’s changes are the start of a five year plan with most of the recommendations likely to become law at some point.
The New Changes
Gambling adverts are the most effective way to reach people who might be vulnerable to addiction. But with the UK’s growing problem with gambling addiction, this type of advertising is a slippery slope that leads to problem gambling and makes consumers more vulnerable.
The recommendations coming into force are as follows:
- Banning online and TV gambling adverts
- Football shirts no longer able to feature gambling logos
- A £2 stake limit for online slots
- Ending VIP schemes
- Affordability checks for customers
- Raid speed slot games banned
- A new ombudsman.
Online and TV advertising bans are part of this first part of new changes, but it seems like it’s the next logical step. For now anyway, the changes are addressing the immediate concerns with government has with problem gambling and slot games.
Time For Gambling Companies To Adapt
In recent months, we have seen several online gambling platforms in the UK shut their doors. The introduction of a fixed odds betting terminal cap is just one example of how changing public opinion can put a damper on business.
FOBTs had their date with the axe back in October 2017. The UK Gambling Commission (UKGC) announced its decision to end fixed-odds betting terminals (FOBTs. It was the UK’s 40th Gambling Act of its kind and it came after the Irish government had already done so in 2011.
The Department for Digital, Culture, Media and Sport DCMS set the maximum stake that is allowed on fixed-odds betting terminals to £2. The same move is now set for online slot games.
William Hill was hit the hardest after they started enforcing the new rules, which forced thousands of their employees to lose their jobs. They had to close 700 shops as a result of the change, and many people lost their jobs.
It’s unknown at this stage how the new limit on slot games with impact the industry.
Is This The End For The Gambling Sector?
Gambling is as much a part of life today as it has been for centuries — and the UK has never been blind to the risks associated with gambling. Some critics point out that gambling has become increasingly commonplace in the UK.
Lots of young adults play video games and bet money on things like horse racing, sportsbooks and bingo, making them easy targets for gambling companies to switch their gaming habits to online betting. Critics also note the sight of flashing lights and colors also add to the addictive side of gambling.
It’s definitely important to take action to protect those at risk of online threats like addiction and exploitation, but there is a risk that if measures are too harsh it will lead to people betting offshore rather than in regulated environments.
It’s also worth remembering that gambling is a highly regulated industry. The UK government uses the revenue it earns from these taxes to reduce its deficit, raise money for areas such as the NHS, and fund better services for vulnerable people throughout the country.
Final Thoughts
Given the state of the UK economy as a result of the pandemic it’s unlikely that the government will make all of the recommended changes. Not until the UK’s economy rebounds from its current slump. Considering a 10.2% unemployment rate and a 2.7% deficit, it seems that restricting potential tax intake isn’t top of the governments list.
So therefore, given the current economic state the online betting for UK gamblers isn’t going anywhere anytime soon. The UK government is also very aware of the unregulated online gambling scene and don’t want to push those who want to place a bet towards this market.
The gambling industry will most likely want to consider the benefits of rebranding itself as it tries to shift its image to taking customer welfare more seriously. While it now faces a PR crisis, there are many benefits to embracing the recommendations being put forward.