The UK White Paper, a regulatory guide for the gambling industry, underwent an update approved by the government in April 2023. Despite initial concerns among experts about the perceived severity of the new regulations on operators, especially in the context of potential impacts on the gambling business, families affected by gambling addiction viewed the rules as a formal response to the challenges posed by online gambling.
Nearly a year has elapsed since the White Paper's publication, leaving uncertainty about how the UK gambling industry has adapted to the new regulations. While the extent of adjustment by gambling service providers and developers remains unclear, certain trends have begun to surface in the past year. Today, we explore the ongoing transformations in the British gambling sector and its future direction.
The UK Gambling License: A Coveted 'VIP Card' in the Industry
Experts assert, "There are large gambling markets, and then there is Great Britain." The country's gaming license stands out as one of the most elite and promising in the industry, determining a company's level and status. Issued by the UK Gambling Commission (UKGC), obtaining this license is a challenging endeavor, involving an extensive submission of documents to demonstrate compliance with strict regulatory rules. Despite being one of the world's most expensive licenses, operators unanimously agree that the UK license is an investment worth both cost and effort.
The allure of the British market is attributed to its high income levels. Before the White Paper's adoption, the total gross revenue (GGY) for the six months from April to September 2020 amounted to £5.9 billion, with 52.3% (£3.1bn) originating from the online sector. Online GGY skyrocketed to £6.9 billion by the end of the 2020-2021 tax year, experiencing an 18.4% growth in the first semester alone. Notably, online casinos contributed £4 billion, betting added £2.6 billion, and the remaining GGY came from bingo.
Amid the pandemic-induced closure of land-based gambling establishments, British online gambling not only solidified its leading position in Europe but also globally. The British gambling market boasts approximately 3,000 operators, with around 1,000 providing services in the online space.
The Tragedy of Suicide and the Impetus for the White Paper
On September 19, 2019, the UK was confronted with the heart-wrenching narrative of Kimberley, a 32-year-old woman from Ilkley, West Yorkshire, who took her own life after losing £36,000 received from her mother. In an attempt to clear her accumulated debts from years of relentless online gaming, Kimberley's mother had sold her house. The young woman, grappling with depression following her father's sudden demise and a failed relationship, had spiraled into a gambling addiction, initially in land-based casinos and later transitioning entirely to online platforms. Tragically, she was unable to break free from the clutches of her addiction, ultimately ending her life and leaving a heartbreaking message for her mother: "It's all too late for me, Mom."
This poignant incident triggered widespread outrage across the nation, prompting thorough investigations by the media, including The Guardian. Data from the Gambling Commission revealed that approximately 340,000 people in Britain grapple with severe gambling addiction. In response, Kay Wadsworth, Kimberley's mother, joined Gamblings With Lives, an organization advocating against intrusive gambling advertising and representing families who have lost loved ones to gambling addiction. The organization strives to elevate the recognition of gambling addiction as a public health emergency, advocating for psychological support to be extended to addicts before their actions harm their families and, ultimately, themselves.
In the wake of the public outcry against gambling addiction and the pervasive advertising of gambling, the British government initiated consultations to update regulatory laws in the gambling sector. This endeavour gained momentum during the pandemic, as the issue of gambling addiction escalated, affecting an even larger number of gamers and their families.
Up until 2023, the last approved law regulating gambling dated back to 2005. Recognizing the industry's global transformations and the evolution of online gambling, the government acknowledged the outdated nature of existing laws, which failed to keep pace with innovations and changes in the field. This acknowledgment laid the groundwork for the initiation and development of the White Paper.
New Laws Transforming the Landscape of Gambling in Britain
The eagerly anticipated approval of the White Paper in 2023 marked a significant shift in the legal framework for gambling in Britain, drawing support from advocates of responsible gambling and families affected by gambling addiction. The primary aim of the legal changes was to enhance transparency in gaming processes and prioritize the protection of clients' psycho-emotional well-being.
Recognizing online gambling as a high-risk activity for potential addiction, the British government implemented a bet limit ranging from £2 to £15 per spin ($2.5 to $18.6). Even more stringent limits were established for individuals aged 18 to 24, a demographic considered particularly vulnerable to severe forms of gambling addiction.
An essential feature introduced by the White Paper was the mandatory fixed fee imposed on bookmakers to contribute to the treatment of gambling addiction in users. This departure from the previous voluntary system marked a crucial step in addressing the societal impact of gambling-related harm.
The legislation also incorporated a vital provision for checking gamers who engage in significant spending, setting thresholds at £1000 within 24 hours or £2000 over 90 days. However, the specific protocols for operators to assess clients prone to gambling addiction were not explicitly outlined in the law.
Furthermore, the White Paper bestowed additional powers upon the Gambling Commission (UKGC) to combat unlicensed gambling companies through court orders. Collaboration with Internet providers was reinforced to identify and block illegal gambling sites. Stringent measures were introduced to mitigate harm from bonus offers, including restrictions on certain types of bonuses like free bets and spins.
In a bid to safeguard minors, the regulations imposed heightened controls to ensure individuals under 18 years of age were prevented from participating in gambling, encompassing lotteries and slot machines in pubs. Notably, the document eliminated the possibility for all land-based casinos to offer sports betting in addition to other forms of gambling, delineating a comprehensive set of measures to reshape the gambling landscape in Britain.
Mixed Feedback from Affected Families on Gambling Legislation Changes
Kay Wadsworth, the mother of a young woman who tragically succumbed to gambling addiction, has expressed reservations about the recent legislative changes in the gambling industry. Reflecting the sentiments of many families affected by gambling addiction, Wadsworth criticized the new rules, asserting that they merely create an illusion of control. She doubts whether such an approach at the governmental level will genuinely aid those struggling with gambling addiction.
Wadsworth had hoped that the White Paper would address contentious VIP schemes that often target customers with significant losses. However, she lamented that the proposed measures only involve monitoring such schemes, with ongoing consultations regarding bonus offers like free bets. In her view, these steps fall short of what is necessary, emphasizing the urgency of enacting comprehensive legislation rather than engaging in prolonged consultations on player checks, bonus cancellations, and advertising restrictions.
The lack of clarity in the law regarding the specific processes for verifying clients and restricting availability further adds to the concerns voiced by affected families. The ambiguity surrounding these crucial aspects raises questions about the effectiveness of the legislative changes in addressing the complex issues associated with gambling addiction.
Impact of New Legislation: UK Leads in Responsible Gambling Practices
The integration of the new regulatory rules compelled British industry giants to adapt swiftly, resulting in measures such as bet limitations, stringent checks, and increased dissemination of information to customers regarding responsible gambling practices. The consequential outcome was a notable shift in the gambling landscape, positioning the UK as a leader in voluntary self-exclusion in 2023.
A significant milestone was achieved through the UK's national gambling self-exclusion system, Gamstop. In 2023, a record-breaking 92 thousand individuals in the UK chose to cease gambling, marking a 9.5% increase from the previous record set in 2022, which stood at 84 thousand registrations. The Gamstopregistry currently boasts 433,357 players, with a majority (55%) opting for a lifetime self-exclusion from gambling. Particularly noteworthy is the 31% surge in registrations among Britons aged 16 to 24 in 2023.
These statistics, reflective of concrete numbers, underscore the efficacy of the White Paper rules in promoting responsible gambling practices. The surge in self-exclusions indicates that the regulatory changes have contributed to creating a safer and more ethically aligned gambling environment in the UK. The commitment to responsible gambling principles is evidenced by the increasing number of individuals opting for voluntary self-exclusion, aligning with the overarching goal of fostering a more responsible and ethical gambling industry.
