What we regulate
With the current evidence base, we do not support the prohibition of all Category D machines such as crane grabbers and coin pushers for under 18s. There is currently no substantive research or evidence clearly identifying harms resulting from general Category D machine play. Based on evidence submitted to the call for evidence we estimate that those that pay out money (known as “cash-out Category D slot machines”) currently account for approximately two thirds of Category D slot style machines. The economic value of FECs, which rely heavily on Category D machines, was highlighted in responses to our call for evidence.
A common theme in these responses was the need for a ‘precautionary’ approach to the regulation of advertising, arguing that the absence of evidence of harm must not be treated as evidence of an absence of harm. The differences in regulation for gambling advertising in broadcast and online channels are particularly noteworthy. Although the IGRG code is an industry code, compliance with it can be considered alongside compliance with the Gambling Commission’s own rules when the regulator is assessing an operator’s suitability to hold a licence. The code bans most broadcast gambling advertising before 9pm, with the exception of bingo and lotteries, and sports betting advertising in the build up to and after (but not during) a live sporting event. Additionally, the trade bodies representing the gambling industry have developed the Industry Code for Socially Responsible Advertising (‘IGRG Code’), which was last updated in October 2020. The Gambling Commission also sets some specific rules on how gambling operators advertise through its Licence Conditions and Codes of Practice.
1 The current position
With over 30 years of experience in Payment Fraud Prevention, GPayments has committed itself to developing solutions that are globally interoperable and built on industry standards. Our advanced software automates the process by assessing vast amounts of data and producing detailed reports that highlight any red flags. Consequently, this guideline encompasses all aspects of gaming law in the UK.
This requirement was intended to ensure a balanced offer of gaming products in 2005 Act casinos, which had a significantly higher gaming machine entitlement than 1968 Act casinos. The government is proposing to operate two regimes for 1968 Act casinos whereby they can either operate under the existing rules with no increase to their gaming machine allowance or they can take up their new gaming machine entitlements under the new rules. Do you perceive there to be any issue with allowing multiple casino licences in the same physical location if gaming machine entitlements are increased as proposed? Do you agree with the proposed gaming machine entitlements based on the sliding scale for (i) gambling space; (ii) table gaming space (iii) non-gambling area; and (iv) machine-to-table ratio? The implications for operating and premises licence fees, bringing 1968 Act casinos in line with existing fee scales for 2005 Act casinos, are also discussed later in this chapter. It is our intention that these casinos can continue to operate under the existing regime, whereby they are permitted no more than 20 machines where at least one is of Category B (or they may elect to have any number of Category C or D machines instead).
The personal information we collect and process is the data provided to us directly by you in the responses to this consultation. This notice sets out how DCMS will use your personal data as part of our legal obligations with regard to data protection. For the purposes of personal data collected in the course of this consultation, DCMS is the data controller.
There are likely to be indirect costs in the form of displacement from online sports betting as those in casinos who would otherwise have bet on sports using mobile devices may be more inclined to do so using casino services. 1968 Act casinos to be subject to a limit on the number of self-service betting terminals depending on their total gambling space. These terminals are not gaming machines if they are designed or adapted for use to bet on future real events. We estimate that most of the remaining casinos would also be able to benefit from increased machine allowances, proportionate to their size and non-gambling area.
The Gambling Commission’s annual Young People and Gambling survey found that the past week gambling participation trend for 11 to 16-year-olds had decreased from 23% in 2011 to 7% in 2022 (Figure 17). In 2020, gambling was included in the Department for Education’s relationships and sex education (RSE) and health education statutory guidance for England. In December 2020, following a consultation, the government announced that the minimum age to play National Lottery products (including draws, instant win games and scratchcards) would be increased to 18 years old from October 2021. Football pools and society lotteries have a statutory minimum age for play of 16 years, but some operators voluntarily apply a higher age limit of 18 years. Currently most licensed gambling activities and products are restricted to 18 and over, and it is an offence under the 2005 Act to offer gambling products which are intended only for adults to children. However, children remain a vulnerable group, and even young adults (18 to 24-year-olds) who are legally permitted to gamble may still be particularly susceptible to harm.
If so, check out this page, which tells you everything from the top casinos through to the games on offer. In addition, all gambling sites are now required to pay a 15% tax on all profits generated from British customers. By the time the British Parliament passed the Gambling Act 2005, which modernised the gambling industry, many Brits were already intimately acquainted with all forms of wagering.
All stakeholders recognise the potential for a so-called single customer view (SCV) to tackle this risk. Customers’ ability to swap to another account risks undermining the effectiveness of an individual operator’s safeguarding interventions. Likely impacts are explored in more detail in Annex A of this white paper, and the Commission will give further consideration to impacts, including the potential for any unintended consequences, through its detailed consultation. The Data Protection and Digital Information (No .2) Bill, currently before Parliament, includes some important clarifications to the rules around lawful processing and the circumstances in which personal data collected for one purpose can be used for other purposes, which should make the law clearer in this area. We will also make sure consumers’ financial lives are not impacted through these checks, with credit scores being unaffected and potentially adverse consequences of reciprocal data sharing avoided. We recognise these proposals have significant implications for collection and handling of sensitive consumer data, raising important questions around privacy, data protection, proportionality, data accuracy, and reciprocal data sharing.
What we’re doing to ensure the gambling industry promotes safer gambling
Some industry stakeholders questioned the necessity of the sliding scale given the numbers of SSBTs where they are currently permitted are low, and this could be seen as adding to an already complex regulatory framework. This would mean any table gaming area would only count towards the minimum table gaming area if it constitutes 12.5% or more of the total table gaming area in the venue. Exempt venues will be prevented from increasing their gambling area further, from 16 May 2024. Those opposed to the reduction preferred a larger minimum table gaming area requirement in place such as 350sqm. With regard to venues currently operating with a gambling area of 1500sqm or more, the strongest preference from consultation respondents was for these venues to be made to reduce their gambling area below 1500sqm.
Preserving Corporate Integrity: Limits and Safeguards on Directors’ Authority
The minimum table gaming area for Small 2005 Act casinos, which is currently 500sqm, will be reduced to 250sqm to align the minimum space requirements for these different regimes. Land-based casinos, which provide employment and contribute to the night-time leisure and tourism economy, were like other sectors of that economy severely impacted by the COVID-19 pandemic. We also intend to permit a smaller increase in machines for venues that do not meet these size requirements, proportionate to overall size and non-gambling area. The white paper set out the government’s intention to bring the two regimes closer together, with similar requirements on machine numbers proportionate to size, non-gambling area and gaming tables.
Some land-based operators proposed that players in venues other than casinos should be able to choose to allocate a small proportion of their stake towards an additional prize pot. A number of proposals from the land-based industry related to concepts of new machine games and categories of gaming machine which do not currently fit into existing regulations or current technical standards. In response to this, we received a number of proposals for changes to rules surrounding gaming machines in venues. We agree that operators should maintain a range of payment options, including cash, to allow for customer choice and ensure that gambling harm is kept to a minimum.
The full impact is explored in further detail in Section 10 of Annex A. Alongside the changes to this ratio, we expect operators to continue to improve player safety controls as outlined above, and work with regulators to ensure full compliance. Without an increase in stakes or a change to the 80/20 rule, operators have highlighted their difficulties in meeting increased costs. Concerns regarding energy efficiency are particularly relevant, with operators estimating that costs have increased significantly over recent months. The code includes a commitment to introduce standards to all new land-based slots products such as ensuring cash payout games do not appeal to children and that awards below the stake are not celebrated.
Any fee increase must be linked to the cost to that particular local authority of carrying out its gambling functions. We recognise that the maximum for licensing authority fees has not been updated since 2007, during which time inflation has inevitably reduced its value. Some have expressed a desire to do more to apply local considerations in their areas when making licensing decisions. For example, existing powers, such as local policy statements, allow licensing authorities to account for factors such as public health and crime. In England and Wales, the government sets a cap and licensing authorities have flexibility below that to set their fees.
The Commission issues licences to gambling operators, can levy fines and revoke licences, and is tasked with investigating and prosecuting illegal gambling. In October 2020, the Commission published the results of an investigation of BGO, GAN, and NetBet, three UK online gambling operators. In March 2020, the UKGC made it mandatory for online gambling operators to participate in the self-exclusion scheme GamStop. It is also responsible for remote gambling which includes betting online, by telephone and other communication devices using the equipment, that offer or advertise services to the residents of Great Britain. NHS survey figures also show that there is a problem gambling rate of 8.7 per cent for online gambling on slots, casino or bingo games, one of the highest rates across gambling activities.
- The Gambling Commission also has powers to launch criminal investigations and bring criminal proceedings against companies and individuals (and, as at the time of writing, there is a live prosecution brought by the Commission against a company for providing unlicensed gambling facilities to consumers in Britain, illustrating the Gambling Commission’s willingness to exercise such power).
- The government proposes that venues will be required to comply with all specified sliding scale requirements in order to access the enhanced gaming machine entitlement.
- Added link to 2026 edition of the Gambling Commission’s Money laundering and terrorist financing risk assessment.
- Perhaps the single most impactful change for casino players, the UKGC has capped bonus wagering requirements at a maximum of 10 times the bonus amount.
We propose to align the lifting of the prohibition on direct debit card payments on gaming machines and the introduction of player protections within regulations with the Gambling Commission’s review of the Gaming Machine Technical Standards. Under the current rules, there is a risk that operators entering the market might use in-fills and tablets to account for the totality of their Category C and D offer while offering Category B machines exclusively on more popular cabinet machines. By contrast, Option 2(a) would likely increase the numbers of Category B cabinets in a similar proportion to Option 1, while safeguarding against the possible scenario in which Category B machines become the only cabinet gaming machines offered. The concern raised was that any variation of Option 2 would be damaging to tablet gaming machine manufacturers as this would likely lead to vast numbers of these machines being removed by operators. These responses primarily came from small businesses who supplied tablet gaming machines to the market.
As such, our position is that they should only impact a minority of engaged customers, and involve unintrusive checks at moderate levels of spend to help identify particularly financially vulnerable consumers, and more comprehensive although still frictionless assessments for those spending more heavily. Given that most gamblers are not spending more than they can afford or otherwise experiencing harm, we are mindful that these checks need to be proportionate. While many operators have already introduced systems, interventions often come too late or not at all, and the measures are inconsistently applied across the sector. As explored in the Commission’s advice to this Review, different checks are likely to be necessary to address the different risks, and requiring the appropriate checks at appropriate thresholds is key to ensuring the system is effective. Figure 6 below shows YouGov data on discretionary income available for different age bands as reported in the Commission’s consultation, and can be considered alongside other data such as from the ONS. Similarly, work by the Social Market Foundation has considered ‘Minimum Income Standards’ and the potential for gambling losses to impact personal and household living standards for some groups.
In our view, it would be premature to pursue legislative options without first pursuing enhanced industry-led protections, given the potential downsides. As set out in the response, we do not intend to adjust the legal definitions of gambling at this time in order to capture loot boxes. The government’s response to that call for evidence was published in July last year, setting out our plan to improve protections for children, young people and adults, and to support better longer term research into the impacts of video games. In September 2020, the government launched a call for evidence on loot boxes in video games to understand their impact and whether changes are needed to ensure consumers are effectively protected. We will consult on the potential for regulating large scale prize draws with a view to identifying options and developing an evidence base against which their impact and the extent to which different regulatory measures would be proportionate can be properly assessed. The Commission’s current approach adequately deals with that risk at present, but it will continue to monitor the development of new technologies and payment vehicles closely.
Industry submissions put forward a range of proposals for changes to the rules that could allow the sector to develop and thus support the Review’s objective of ensuring the regulatory landscape for land-based gambling reflected changes since 2005. The Act embedded a principle that gambling should generally take place in gambling-specific premises as opposed to places where it would be incidental to the establishment’s primary purpose, such as cafes or taxi offices. The fees must be set on a cost recovery basis to cover the cost of administration and enforcement (e.g. inspections), and are therefore essential to ensure that licensing authorities can properly regulate gambling in their areas. Scottish Ministers also have the power to set application and annual fees for premises licences, which differ from the fees set out for England and Wales, set out in the Gambling (Premises Licence Fees) (Scotland) Regulations 2007.
1We expect operators to take into consideration the Gambling Commission’s views expressed in this document. The ICO report that the gambling sector is one of the most complained about sectors in this respect. Separately, sites not on gamstop concerns have been raised about the volume of unsolicited direct e-marketing (predominantly via email and SMS) for gambling products which consumers receive. Although Article 10 of GDPR provides that, usually, processing of personal data relating to criminal convictions and offences shall only be carried out under the control of official authority, there are exceptions to this.
Regulator data shows that there is broadly a good standard of compliance with the existing advertising regulations. Many outdoor media owners therefore apply a ‘100 metre rule’, meaning they will not place certain ads, for example those that promote age-restricted products such as gambling, alcohol or e-cigarettes, within 100 metres of a school boundary. It also requires mandatory inclusion of safer gambling messaging, and has been updated to include the use of adtech to ensure social media ads are only targeted to users aged 25 and over where age verification is not in place, and that ads do not appear where keyword searches suggest vulnerability. The Committees of Advertising Practice (CAP), which set the rules which the ASA enforces, maintain and periodically update a dedicated broadcast and non-broadcast code (which also applies to out-of-home advertising, such as posters and billboards) for gambling and lotteries products. However, the continual growth of gambling marketing since 2005 has not resulted in an increase in gambling participation rates, which were higher overall prior to the Act’s implementation, or in population problem gambling rates which have remained broadly stable.
Checks will happen in the background against information already available online, so those who are checked will not notice. Betting companies will be required to conduct seamless player protection checks on the highest spending gamblers to check they’re not incurring harmful losses. A new stake limit for online slots will be introduced with the default maximum stake of between £2 and £15 per spin, subject to consultation. The rate will be subject to further consultation, which will take into account factors such as business size, operating costs and problem gambling rates.