Pulse
UK Government calls for tougher stance against online gambling
By William - 8 January 2020
As MPs demand a ‘root and branch review’ of regulation, new industry body the Betting and Gaming Council has secured Safer Gambling Commitments from market leaders.
The Chief Executives of leading gambling companies in the UK have announced a package of Safer Gambling Commitments to address the harm gambling can cause to customers and young people. The pledges were made on the same day the Betting and Gaming Council, the new industry body, was launched with a focus on championing standards.
The Safer Gambling Commitments represent the most comprehensive set of measures made by a wide group of leaders across the sector to support the UK Gambling Commission’s National Strategy to Reduce Gambling Harms. However, news of the commitments coincided with the release of an interim report commissioned by the Gambling Related Harm All-Party Parliamentary Group which raised concerns that the Gambling Commission is not fit for purpose.
The report followed a six-month inquiry into the harms caused by online gambling following disquiet among parliamentarians, charities, academics, families and individuals at the high levels of harm caused by online gambling. The report condemned the lack of action from the Government and the Gambling Commission to effectively address these issues and claimed that this inaction has allowed the industry to continue to prey on vulnerable gamblers.
A radical overhaul
The key recommendation of the report is that the Government should urgently introduce gambling legislation to implement a £2 stake and prize limit for online slot machine style games. The report condemned the disparity in content controls between online and offline games and highlighted the Government’s acceptance of the principle that harm can be reduced by lowering stake and deposit limits. It also claimed an urgent need to ban the use of credit cards to gamble online, with it being ‘inconceivable that gamblers are able to fund their addiction using debt.’ The report called for online gambling operators to sign its Charter for Regulatory Reform to signal their intention and support for the policy proposals and recommendations.
Carolyn Harris MP, Chair of the Gambling Related Harm All-Party Parliamentary Group, criticised the Gambling Commission’s for its regulation of the online gambling sector: “This report highlights the urgent need for a root and branch review of the regulation of online gambling. Stakes and prize limits online would be a major step forward in reducing the harm caused by the sector. It is not at all clear why the Gambling Commission is not looking at this as a matter of urgency. It is an abdication of its responsibility as a regulator. There must be consistent and appropriate regulation of all forms of gambling. I also urge the Government to urgently review the provision of research, education and treatment in the sector. Gamble Aware are not effectively carrying out this function and it should immediately be brought into a public health setting.”
The report also recommends that banks be given an increased role in relation to affordability checks, and for the restriction of VIP accounts and inducements. It wants online gambling operators to significantly improve the measures they take to protect vulnerable and at-risk gamblers by simplifying their terms and conditions for easy comprehension. The report recommends operators commit to fund blocking software, offered without charge, to gamblers who self-exclude from their website. The report wants the sector to urgently adopt a more responsible approach to advertising in order to protect children and the vulnerable, with a ‘duty of care’ placed on gambling operators. These proposals were supported by the findings of GambleAware’s separate investigation into gambling advertising, which found little evidence of technology being used to proactively target advertising away from children, young people and vulnerable adults.
The report’s recommendations came after a pledge by the Gambling Commission to play their part in raising standards, including addressing concerns around gambling with credit cards and introducing protections for consumers online through potentially mandating changes around VIP schemes and inducements. The Commission revealed they had received an offer from one major operator to lead the development of a code of conduct on the treatment of VIPs and associated inducements to gamble.
The Parliamentary report also recommended the treatment of gambling addiction and support for gambling related harm to become part of the NHS’ remit, with a ‘smart statutory levy’ of one per cent introduced to fund research, and for the commissioning of research transferred from GambleAware and the Gambling Commission to independent UK research councils and a public health setting.
Creating a culture of safer gambling
Support for the Safer Gambling Commitments came on the same day that a new representative body for the UK’s betting and gaming industry formally launched, which pledged to champion and drive forward these commitments. The Betting and Gaming Council, representing betting shops, online gaming businesses and casinos, was established in response to calls for the industry to work together to guarantee an enjoyable, fair and safe betting and gaming experience for all.
The Safer Gambling Commitments were agreed by leading gambling companies, including Aspers, bet365, Caesars, Flutter Entertainment (Paddy Power Betfair), Genting, GVC (Ladbrokes and Coral), Playtech, Rank Group, Sky Betting & Gaming and William Hill. To ensure transparency, the signatories committed to the Safer Gambling Commitments being regularly and publicly reported on, with an independent monitoring and evaluation process consistent with the best practice approach used by other public bodies such as the Gambling Commission. A YouGov poll of more than 2,000 adults commissioned by the Industry Group for Responsible Gambling found that although 77% of people feel they are aware of tools to help them gamble responsibly, they support a public education campaign to promote safer gambling. One of the first actions announced by the Betting and Gaming Council was a new four-year national programme designed to improve the awareness and understanding of gambling associated risks amongst young people, their parents, families and youth professional workforce.
Brigid Simmonds, Chairman of the Betting and Gaming Council, welcomed the commitments: “This is a major step towards preventing underage gambling and addressing harm. Working together as an industry we will create a culture of safer gambling – increasing the competency of professionals who educate young people, increasing support for treatment, strengthening and expanding codes of practice and empowering consumers. These are commitments that the Betting and Gaming Council will champion and drive forward to build public and institutional trust in our industry.”
Operator collaboration key to compliance
In October, the Gambling Commission revealed the results of their own interim report into the compliance standards of online casino operators. Of the 123 operators examined, 45 were told to submit an action plan to raise standards, while a further 14 were the subject of enforcement investigations. Five operators and 3 PMLs surrendered their licenses, with seven operators paying €21 million in penalty packages.
Speaking at the ARQ Conference in Malta, Neil McArthur, Chief Executive of the Gambling Commission, stressed the importance of the relationship between the Gambling Commission and the Malta Gaming Authority, with operators in Malta accounting for around one-eighth of Great Britain’s regulated market. Since the end of 2014, operators have required a remote gambling license from the Gambling Commission if their gambling facilities are being used or are likely to be used in Great Britain, irrespective of whether any equipment is located there.
Mr. McArthur encouraged operators to collaborate in order to improve compliance and ensure a level playing field: “We know that the success of many technology companies and digital content creators depends on their ability to establish and maintain the engagement of their consumers on their web and mobile apps. We know that this can be done by behavioural techniques which can change behaviour without the consumer’s knowledge and not always in good ways. So, I am challenging you – both mobile and online game designers – to work together to produce an effective Industry Code for Game Design, which can be published no later than next spring’s Raising Standards conference. If such a Code is developed to address the risks, the Commission will move to bring it into LCCP and Technical Standards to ensure a level playing field for all.”
