Will more restrictions on gameplay force players offshore?
Rightlander’s Ian Sims looks at whether by imposing greater restrictions on the UK market, regulators might positively enable the illegal offshore gambling market
Responsible gambling and the Gambling Commission’s role in protecting vulnerable players has been in the spotlight; last month the UKGC announced a number of changes that UK-licensed operators will have to implement by 31 October later this year, with the overview to make online casino games safer by design.
One such change is the removal of the auto-play facility that many online slot players utilise and judging by the conversations taking place at the various online casino forums frequented by players, the news of its impending removal is not being well received. Over the past years many changes to how operators serve the UK market have been welcomed; the removal of the ability to reverse withdrawals is one such move that the UKGC should be applauded over.
Additionally, a number of ‘responsible gambling’ tools have been introduced which have been made mandatory for licensed UK operators, such as the facility to set deposit limits over a designated period of time. These are all very welcomed. However, there is a growing concern that further changes, which could be seen as punitive, while in the guise to protect vulnerable individuals, could cause more harm than good.
The very real spectre of maximum stake limits of £2 or thereabouts to mirror the change made on FOBTs is looming. And this is all despite the fact that an online casino operation is a completely different animal to the fixed-odds betting terminals which are found up and down the country in high street betting shops.
Many believe that playing at an online casino or at on online slot machine are one in the same. However, the two are completely different. For starters to sign up and open an account at an online casino, a player has to go through the KYC process. They have the ability to set deposit limits, thus providing them with the ability to control their gambling spend. Furthermore, operators are now required to perform SoW (Source of Wealth) checks on their players. None of these apply to FOBTs, or slot machines or indeed land-based casinos.
Yet campaigners for more stringent restrictions would lead you to believe that online casinos servicing players in the UK are enabling the proliferation of problem gambling and further restrictions need to be applied. Currently the ongoing review of the Gambling Act 2005 has seen proponents of tougher and stricter regulations, to include £2 maximum stake limits.
What these groups fail to understand is that by the introduction of a relatively small £2 maximum stake limit imposed on online casino operators, the vast majority of individuals who enjoy gambling and are able to enjoy their pastime responsibly will look elsewhere. This will in turn make them look to offshore operators who do not come under the licensing regime and remit of the UKGC.
The type of operators that we see promoted and targeted towards problem gamblers, who have signed up to and with the self-exclusion service Gamstop, will actually benefit from the actions of those bodies and individuals who want to protect players. This is akin to making players jump into shark-infested waters and at the same time removing the protections that they currently enjoy from the UK’s regulator of gambling. Not to mention that many operators will decide to depart the UK as several already have.
Possible improvements
There is no doubt that the Gambling Act 2005 in its current form should be reviewed, after all it is 15 years since it came into being.
During this time there have been many changes, in particular when it comes to gambling on mobile devices. In 2005, this technology was in its infancy with WAP-enabled devices. Therefore the Gambling Act 2005 needs to reflect the changes made and indeed the introduction of smart devices during this time. Additionally, instead of making a broad sweeping change to bet limits which would affect all regardless of means of income, perhaps bet stake limits could be linked to the resultant ‘Source of Wealth’ checks that operators have to perform as part of their licensing requirements and obligations.
Another area that the UKGC could be implored to police is the proliferation of those sites which have been set up to target individuals who have self-excluded using Gamstop. Just a quick google for terms such as ‘Non Gamstop sites’, produces dozens of sites created with the sole aim to target ‘problem gamblers’ and promote offshore and unregulated operators out of reach of the UKGC.
However, further research has shown several of them have been created by UK-based individuals. Surely the UKGC has or should be provided with the power to take down such sites.
Ian Sims is the founder of Rightlander, a state-of-the-art affiliate compliance platform that allows affiliates and operators to identify potentially non-compliant content in regulated jurisdictions. Prior to establishing Rightlander, Sims was an egaming affiliate for 13 years.