Gambling Commission news and European regulation Flashcards
what are the three licensing objectives which support the whole basis of gambling regulation?
- that crime should be kept out of gambling
- it should be conducted in a fair and open way
- children and other vulnerable persons should be protected from harm or exploitation from gambling
who are the betting and gaming council (BGC)?
The betting and gaming council is the industry association which represents betting shops, online betting and gaming and casinos
who are GamCare?
national gambling helpline
what type of compliance with safer gambling requirements do the Gambling Commission enforce?
- transparency with consumers - do they know who they’re participating against
- advertising and marketing - advertising and marketing of gambling products and services must be undertaken in a socially responsible manner and must comply with the UK advertising Codes
- contribution to research, education and treatment (Entain Foundation
- fair and transparent terms and practices
- self-exclusion
- preventing underage gambling
what is the Licence conditions and codes of practice (LCCP)?
- the rulebook that sets out the measures that you must take and other aspects that the gambling commission think are good practice
who regulates gambling in Europe?
- each of the 27 members of the EU is responsible for passing its own laws and regulations so they can vary widely
- not one key regulator but organisations such as the European Gaming and Betting Association and the International Association of Gaming Regulators aims to unify and develop the gambling sector as a whole
what changes has the Gambling Commission just made regarding customer-led tools?
- all customers must be prompted to set a financial limit as early as possible in the customer journey (and in any event prior to their first deposit);
- financial limits must only be offered using free text (i.e. these cannot be predetermined amounts);
- financial limits must be applied at the account level
- all customer requests to decrease a financial limit must be actioned immediately;
- licensed operators shall prompt customers to review their financial limits at least every six months.
what are some of the betting and gaming industry’s biggest compliance challenges?
Source of funds checks are the compliance challenge that operators find most difficult:
- Submission of personal financial information documentation is the stage that sees the biggest drop-off rates in the onboarding process
what is the new white paper?
The Gambling Act Review White Paper (April 2023) updates UK gambling regulations to address digital-age challenges. Key proposals include:
Affordability Checks: Mandatory financial risk assessments for customers (particulalry under 25’s)
Stake Limits: Caps on online slot stakes (£2-£5 for younger adults), potentially reducing revenue from high-spenders.
Advertising Restrictions: Tighter rules, including potential bans on sports sponsorships and stricter social media controls.
Player Protection: Mandatory use of AI to identify at-risk behaviors, requiring investment in tools like Entain’s ARC system.
Statutory Levy: A mandatory fee to fund problem gambling research and treatment, increasing costs but supporting sustainability.
Why is regulation needed in the betting and gaming industry?
- gaming industry actually one that seeks regulation
- stable requirements are attractive to gambling companies and generate booms for local economies
- want regulations that are logical, practical and commensurate with the state of the market
- players can trust the games are fair, full transparency in terms of rules
- regulation actually the means by which gambling expanded in the US in the 70s and 80s
- player protection - negative externalities arise in unregulated markets, those being gambling addicts etc.
what is regulation?
- regulation is used to protect and benefit people, businesses and the environment and to support economic growth
- primary used to address market failures as when markets are left to their own devices they risk failing to produce behaviour in accordance with public interests (eg. safer gambling)
- good regulation can enable innovation, prompting necessary legislative change or improving consumer confidence in a sector
- most regulators are independent bodies, but government plays an influential role in setting the legal and policy frameworks in which regulators set rules and intervene in markets
- regulators are avenues for companies to appeal regulatory decisions, and for customers to directly seek redress for poor service
what are the problems of the black market?
Problems of the Betting Black Market:
Lack of Player Protection - leaving players vulnerable to harm.
No Tax Contributions: Black market operators evade taxes, depriving governments of revenue that could fund public services, including problem gambling treatment and education.
Increased Problem Gambling: Without safeguards, players are at higher risk of developing gambling-related harms
Exploitation of Vulnerable Individuals: Unregulated platforms often target vulnerable groups, including minors and those with gambling addictions, exacerbating social issues.
Undermining Licensed Operators: The black market creates an uneven playing field, as licensed operators face stricter regulations and higher costs, making it harder to compete.
what is the implication of the new white paper on businesses?
Compliance Costs: Higher costs for affordability checks, advertising compliance, and AI tools.
Revenue Impact: Stake limits may reduce revenue, pushing operators to diversify offerings.
Reputation: Proactive measures, like Entain’s ARC and GamCare certification, can enhance trust and reputation.
Sustainability: Focus on long-term player protection and sustainability over short-term profits.
In summary, the White Paper shifts toward stricter regulation, emphasizing consumer protection and responsible gambling.
how should regulators address the problems of the black market?
Balanced Regulation: Regulators should avoid overly restrictive measures that drive players to the black market. For example, affordability checks and stake limits should be proportionate to minimize unintended consequences.
Enforcement Against Illegal Operators: Strengthen efforts to identify and shut down unlicensed platforms, working with international partners to tackle cross-border operations.
Promote Licensed Operators: Highlight the benefits of regulated markets, such as player protection, fair play, and dispute resolution, to encourage players to stay within the legal framework.
Collaboration with Industry: Work with licensed operators to develop evidence-based policies that balance consumer protection with a competitive, sustainable market.
which government department deals with the industry?
Department for Digital, Culture, Media and Sport of the United Kingdom
what are the BGC published key regulatory objectives:
The guide outlines key regulatory objectives, including:
High Channelisation: Encouraging gambling within regulated markets to ensure player safety.
Consumer Protection: Implementing stringent measures to protect young and vulnerable individuals.
Preserving Consumer Choice: Maintaining market competition and variety.
Keeping Gambling Crime-Free: Ensuring integrity in sports betting and gaming.
Raising Tax Revenue: Motivating operators to invest in local markets and contribute to the economy.
