UK government unveils long-delayed draft legislation on overhauling gambling laws

The UK government has unveiled the long-overdue white paper into the Gambling Act 2005 review, which could usher in broad-base changes to the UK’s gambling laws.

Changes fall into six key areas, the most notable of which relates to the much-rumoured affordability checks which will see customers subject to financial profiling should they hit predetermined loss levels.

The government has pledged to introduce “frictionless player protection checks” aimed at protecting at-risk players before unaffordable or harmful losses are incurred.

This includes two forms of financial risk checks, consultations on which will be launched later this year, checking “moderate” levels of spend as well as checking bankruptcy and county court judgments against individuals.

With regard to moderate levels of spend, the government will implement financial risk checks after a £125 net loss within a month or £500 within a year.

At a higher level of spend, checks will kick in on gamblers who lose over £1,000 or more per day, or more than £2,000 over 90 days. In addition, affordability trigger levels for those aged 18 to 24 will be halved, based on the increased risk of gambling-related harm for this age group.

Also to be introduced are new stake limits for online slots of between £2 and £15 per spin, as well as a consultation on measures to increase protections for individuals aged 18-24 who show signs of at-risk gambling.

Those customers aged between 18 and 24 will face a £2 stake limit per spin or a £4 stake limit per spin, based on individual risk.

The government has said it wants to close loopholes allowing under-18s to gamble online or in land-based settings, as well as making football pool betting accessible only to those over 18.

Other changes include the introduction of a 1% mandatory industry levy across the sector to pay for research, education and the treatment of at-risk gamblers.

A range of operators already make these contributions on a voluntary basis through GambleAware, however this will be the first time it had been made compulsory. A review of the current horseracing betting levy – currently 10% of bookmakers’ profits from the sport – will also be conducted to “make certain racing continues to thrive”.

Elsewhere, the white paper recommends the creation of a new industry ombudsman to deal with disputes and rule on redress when a customer suffers losses due to an operator failing in their player-protection duties.

In respect of the UK Gambling Commission (UKGC), the draft legislation recommends the provision of extra powers to tackle the black market through court orders and working with internet service providers (ISPs) to take down and block illegal gambling sites.

The government has stated that in 2024 it will review the UKGC’s fees imposed on gambling companies to ensure the regulator has the resources to deliver on its new responsibilities.

The UKGC will also be tasked with holding a consultation on the design and targeting of incentives such as free bets and bonuses with the aim of ensuring “clear rules and fair limits” on requirements and time limits so they do not encourage excessive or harmful play.

A key tenet of the review throughout has been to make the legislation “fit for the digital age” as the industry has changed substantially since 2005.

In March 2021, then UK media and data minister John Whittingdale was appointed to take charge of the review from then sports minister Nigel Huddleston, primarily to accelerate its delivery.

The Department for Digital, Culture, Media and Sport (DCMS) received more than 16,000 responses to its initial consultation, which closed in April 2022.

However, the review has been plagued by delays, chiefly caused by the Covid-19 pandemic and numerous cabinet reshuffles arising from changes in government from the administrations of Boris Johnson, Liz Truss and current UK Prime Minister Rishi Sunak.

MPs including Nicky Morgan, Oliver Dowden, Nadine Dorries and Michelle Donlan have all occupied the role of Culture Secretary during that time, each having responsibility for the review, with current incumbent Lucy Frazer MP only in the job since February.

Delivering a statement on the paper in the House of Commons, Frazer paid tribute to her predecessors, campaigners and those advocating for reform in the sector, citing the potential benefits of strengthened regulation.

“We live in an age where people have a virtual mobile casino in their pockets. It has made gambling easier, quicker and often more fun, but when things go wrong it can see people lose thousands of pounds in a few swipes of the screen,” Frazer said.

“So we are stepping in to update the law for those most at risk of harm with a new levy on gambling operators to pay for treatment and education, player protection checks and new online slots stake limits.

“This will strengthen the safety net and help deliver our long-term plan to help build stronger communities while allowing millions of people to continue to play safely,” the Culture Secretary added.