The task of updating how the UK online casino industry continues to face delays. The latest has seen a two-week delay in discussions over plans to reduce stake limits for slot machines.
It was a data error that led to this latest in a long line of delays. That was contained in the UK government’s consultation document. As a result the deadline for consultation on the plans for reducing the maximum stake on slot games has had to be extended.
The data error made relates to the problem gambling rate for those aged 16-24 years old. A common theme in the White Paper is placing stricter regulations on young players. The government consultation document stated that it was 1.5% but that’s not correct . The 1.5% figure is simply for men in the 16-24 age group.
Back in 2019 the Conservative party included in their General Election manifesto plans to amend the 2005 Gambling Act. There had been many calls by anti-gambling campaigners for this to happen. They didn’t imagine in the final quarter of 2023 they’d still be waiting for legislation, said a CasinoGambler spokesperson, a website about online casinos in the UK.
The key problem that has to be dealt with is the fact the 2005 legislation is outdated. The UK gambling industry has seen many changes over the past 18 years. Online betting has been introduced in addition to just placing bets with your local bookmaker or casino.
The improvements in mobile phone technology has created a situation where gamblers can be placing bets anywhere as long an internet connection is achievable.
The online casino industry in the UK is not being regulated as strictly as it could be. After the Tories won the 2019 General Election, time was spent gathering evidence that would lead to a White Paper on gambling reform. But when would it be released?
Several Tory MPs led the review as the list of ministers in Downing Street regularly changed. The White Paper was eventually sent to Downing Street for a final review. That was in 2022 and sent at completely the wrong time. Prime Minister Boris Johnson was more concerned about trying to keep his job rather than read what the White Paper included.
With two more Prime Ministers since his resignation, it wasn’t until April of this year that the White Paper’s contents were finally revealed. Still the subject of gambling doesn’t seem to be at the forefront of Tory policy. When did you last hear Rishi Sunak talk about the issue?
Even when the White Paper was published, immediate legislation was not considered by the government. We’re in a situation where consultations are taking place with interested parties. With a General Election possible in 2024 and definitely by early 2025, will a struggling Tory government want to introduce legislation that may well upset voters?
That has led to critics claiming that the proposals will still not become law by the time the country goes to the polls. With Labour possibly winning the next General Election, the arrival of Sir Keir Starmer in Downing Street could lead to further delays.
One of the main proposals in the White Paper has been on the subject of online slot games. It is easy to lose a great deal of money on these games in a very short period of time. The White Paper therefore recommends that the maximum stake level for online slots be substantially reduced.
The aim is for the maximum stake to be between £2 and £15 in order to “structurally limit the risks of harmful play.” The slots section of an online casino is so popular with players. Gambling companies know that and regularly include free spins as part of the welcome offers that entice new customers. The fear is that online slots are an especially high-risk product. Players can spend long periods playing slots and incur large losses.
Gambling harms charity GamCare have backed up this view. They recently stated how 60% of those who have made contact with their National Gambling Helpline in the period 2022-23 said it was online slots that was their main concern. That’s a big rise from the 34% recorded in 2018- 19.
Such a move is similar to that seen in High Street bookmakers in regards to the machines that some players love trying to get wins on. The reduction in the maximum stake was a controversial move and one that hit bookmakers hard. Redundancies and shop closures occurred so the fear is that the proposals will reduce profits and perhaps cause job losses.
While gambling companies acknowledge that some new regulation measures are required, the plans for online slots are of great concern to them. While on one hand they talk about caring for their customers and promoting responsible gambling, at the end of the day they also want to protect their profits. An interesting time for online casinos lies ahead of us.