Gambling Act Review: UK to Scrutinize Wagering Limits, Advertising, and Commission

The British administration has officially initiated a long-awaited examination of the 2005 Gambling Act. This review will scrutinize wagering limits, the function of the Gambling Commission, and new advertising constraints.

The Department for Digital, Culture, Media and Sport (DCMS) has issued a request for evidence that will probe betting and spending limits, as well as new regulations on advertising and incentives, alongside enhanced safeguards for young adults. This call for evidence will persist for 16 weeks, concluding on March 31, 2021. The findings will shape planned modifications to the 2005 Act.

Concurrently, the minimum age to participate in the National Lottery will be elevated to 18. The government asserts that the manner in which individuals engage in the lottery has “significantly transformed.”

“These findings will be utilized to inform any alterations to the 2005 Gambling Act to ensure that customer protection is at the core of the regulations, while permitting those who gamble responsibly to do so,” stated DCMS.

“The administration acknowledges the necessity to achieve equilibrium between the enjoyment individuals derive from gambling and the appropriate regulatory framework and safeguards.”

Moreover, the Gambling Commission’s duties and authority will be examined “to guarantee it can keep up with the licensed sector and address unlawful activity.”

The Commission has been criticized by organizations including the National Audit Office and the Public Accounts Committee, which have stated it is underfunded, as well as the cross-party parliamentary group on gambling-related harm, which has repeatedly labeled it “incompetent.”

The review will also look into “the actions that customers can take when they believe operators are violating social responsibility requirements,” such as if insufficient intervention measures have been implemented.

This – along with the review of the Commission – may suggest that the Department for Digital, Culture, Media and Sport is considering establishing a gambling mediator. Groups including the Social Market Foundation have argued that a mediator should be established to handle consumer issues, allowing the Commission to concentrate on licensing.

Although the Department for Digital, Culture, Media and Sport has not explicitly stated that loot boxes in video games are part of the review, it has pointed out that the government launched a call for evidence on the matter in September.

Oliver Dowden, the Secretary of State for Digital, Culture, Media and Sport, stated that the gambling industry has changed significantly since the 2005 Act, making a review necessary.

“While millions gamble responsibly, the Gambling Act is outdated and unsuitable for the digital age,” Dowden said.

The wagering sector has expanded at a remarkable rate since the days of modest wagers at local betting shops, casinos, racetracks, or seaside piers.

This thorough examination will guarantee we tackle problem gambling in all its manifestations, to safeguard children and susceptible individuals. It will also assist those who enjoy a wager to do so securely.

By October 2021, the minimum age for participating in the National Lottery will be elevated from 16 to 18. Consequently, the age restriction will not be included in the review, but the DCMS will consult on this matter before it takes effect.

The DCMS stated the increase in the minimum age was essential because the Lottery’s game assortment had “changed significantly” since its debut in 1994, with more participants wagering online and spending funds on instant win games, such as scratch cards.

In the initial half of its 2020-21 fiscal year, Camelot’s digital earnings reached £1.73 billion, just below its total sales of £3.85 billion, with mobile sales soaring 50.7% to £1.13 billion. Instant win games were the primary revenue generator, bringing in £882.7 million.

“We are dedicated to shielding young individuals from the detrimental effects associated with gambling, which is why we are raising the minimum age for the National Lottery,” stated Nigel Huddleston, Minister for Sport, Tourism and Heritage.

The manner in which individuals participate in the lottery has undergone a transformation since its inception, with a move towards virtual gaming. This transition will contribute to ensuring that the National Lottery, despite its inherently low-risk nature, does not become a conduit for problematic gambling habits.

Downing also highlighted that the Gambling Commission’s past actions serve as evidence of the government’s dedication to enhancing player safety standards within the UK gambling sector.

In 2018, under pressure from lawmakers and advocacy groups, the Commission declared that it would decrease the maximum wager on fixed-odds betting terminals (FOBTs) from £100 to £2. In the preceding year, it implemented new age and identity verification protocols, and in January 2020, it prohibited the use of credit cards for gambling activities.

“This builds upon our established track record of taking decisive measures to safeguard individuals from the potential risks associated with gambling harm – prohibiting the use of credit cards, introducing more stringent age verification procedures, and reducing the maximum wager on fixed-odds betting terminals,” Downing stated.

The Commission also initiated discussions this year regarding safer gambling design and financial affordability, proposing to eliminate autoplay and rapid spin features and establish more precise affordability assessment thresholds.

Consultations on VIP programs recently concluded, requiring licensees to conduct enhanced affordability and responsible gambling assessments.

The Commission asserted that loyalty programs could be prohibited if operators fail to adhere to the newly established controls.

The Tories in the UK had already incorporated plans to reassess gambling regulations in their election platform prior to their triumph in the 2019 election, so an evaluation of gambling regulations was broadly expected.

Various organizations, including the bipartisan Parliamentary Gambling Harm Group, the House of Lords, the Social Market Foundation, the Public Accounts Committee, and the National Audit Office, have all released reports advocating for changes to the UK’s gambling laws.

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