Slot site regulation – latest updates affecting players

Things tend to move quickly in the gambling industry, and it can sometimes be tricky to stay on top of it all.

This may never have been truer than at the moment, with the UK Gambling White Paper having shaken things up considerably.

In this article, we’ll take a broad look at the key things going on in the British gambling industry, and in particular how they might impact players.

Affordability checks confirmed

Let’s kick things off with one of the most controversial recent developments. There are two forms of affordability checks coming into play which will be given a soft launch/pilot test beginning in late August.

The first type, which applies to lower-risk individuals, will consist of ‘frictionless’ background checks. The UKGC describes these as “light touch financial vulnerability checks using publicly available data” and that “these checks are conducted at £125 net loss (accrued bonus funds and re-staked winnings would not be included) within a rolling 30-day period or £500 within a rolling 365-day period.”

For players where the sums are greater, more in-depth “financial risk assessments” will be carried out, for which additional documentation may be required. These will apply “where there are losses greater than £1,000 within a rolling 24 hours or £2,000 within 90 days (accrued bonus funds and re-staked winnings would not be included).” These threshold figures will likely be lower for under-25s.

There’s already been substantial pushback from certain areas of the industry, most notably, a colourful exchange between Racing Post and the UKGC, with the former accusing the latter of violating the privacy of gamblers. 

In response to Racing Post’s accusations, the UKGC insisted that only a tiny proportion of players will be affected by these changes. In an open letter, the UKGC stated that “just 3 percent of accounts would undergo financial risk assessments” and “just 0.3% of account holders would ever be asked to directly provide the additional financial information.”

However, the UKGC was recently caught red-handed trying to suppress survey data that reveals how strongly the public disapproves of the impositions. This scandal has, in some respects, cast doubt on the organisation’s integrity, and the extent to which figures and data may be skewed or distorted to further the Commission’s own agenda.

Key questions remain. Will the inconvenience be outweighed by the potential benefits to more vulnerable players? Will the inconvenience push players to illegal gambling sites?

Impending online slot stake limits

Another contentious issue is the upcoming introduction of stake limits, which is expected to arrive alongside the affordability checks (an unsubtle and clunky approach in itself). 

Stake limits on slots will reduce the maximum per-spin wager to £2 for under 25s and to £5 for those aged 25 and over. These too have attracted criticism.

The change is intended to address the fact that online slot games appear to be disproportionately popular with problem gamblers, but there are concerns about limits causing more issues that they solve.

It’s possible that those gamblers who are used to larger stakes will not find the new maximum limits satisfying, potentially encouraging them to take their business to illegal, unlicensed and untaxed casino websites. 

Illegal casinos are flourishing

Throughout Europe, in a trend that is likely to impact Britain soon to some degree (and possibly as a direct result of affordability checks and stake limits), players are flocking to illegal, unlicensed, black market casino sites in droves. 

This issue is particularly prevalent in France and Germany, whose economies have suffered massively. It is now estimated that a majority of players in each of these countries now gamble illegally. 

Alarmingly, the catalyst for this change appears to have been over-regulation.

In Britain, the main concern is that the upcoming changes to legislation – if they are too heavy-handed – will trigger a flow of players to illegal sites. As it stands, it’s predicted that illegal gambling participation in the UK is at a level of just 3%. 

It remains to be seen if the Gambling Commission will heed the warning and respond appropriately.

A new government

Despite the new Labour government’s manifesto not making many in-depth references to the gambling industry, the party has pledged to work closely with the gambling industry, and to proceed with the changes instigated by the 2023 White Paper. 

The new government's manifesto states, “Labour is committed to reducing gambling-related harm. Recognising the evolution of the gambling landscape since 2005, Labour will reform gambling regulation, strengthening protections. We will continue to work with the industry on how to ensure responsible gambling.”

There are no specific mentions of what shape Labour’s “reform” may take. 

It’s worth noting that Labour received significant financial support from key figures in the world of gambling, including those from Sky Betting & Gaming, bet365, Gamesys and others.

It seems likely that legislative changes will go ahead and that the new government won’t influence the implementation of the incoming regulations. However, with the industry having contributed so much to the Labour campaign, it might of course be that behind-the-scenes discussions may be taking place.

GSGB is on track

On a much less divisive note, the Gambling Survey for Great Britain (GSGB) is shaping up to meet expectations. This uniquely rich dataset is intended to be the most comprehensive, detailed and insightful of its kind.

Wave 2 of the survey’s results was recently published, and it’s generally consistent with Wave 1, suggesting that gambling rates are relatively steady throughout the industry.

It’s expected that the results of the GSGB will soon be impacting policy and decision making in the UK. 

In a rare harmony, there seems to be a general consensus through the industry that the sort of data-driven decision making that will eventuate as a result of the GSGB is the future, and that commissioning the GSGB was the right move.

Statutory levy on the way

Another of the regulator’s methods to reduce gambling-related harm is the introduction of a statutory levy which will apply to all UKGC licence holders. This one has been met with comparatively little resistance.

The levy, which should be in full force by the 2026-7 financial year, will apply to all licence holders with gross profits of over £500,000. These companies will be required to pay a mandatory contribution of 1% of profits.

It is intended that, through these collections, between £90 million and £100 million be raised, and that these funds be distributed as follows:

• 40-60% towards funding NHS treatment and support services
• 15-30% towards the funding of preventative measures (education and early intervention)
• 10-20% towards creating a new UK Gambling Research Programme

Until recently, many operators were making annual donations to an equivalent fund intended to supplement charities. However, some operators were cynically paying a token sum of just £1. 

Therefore, the introduction of the mandatory levy marks a significant step forward in terms of supporting gambling charities and vulnerable players.

Looking ahead…

It’s been a tumultuous year for the industry so far, and many of the changes that have caused the most friction haven’t even come into effect yet. For this reason, we anticipate plenty more turbulence in the near future. 

As stake limits, affordability checks and other measures come into place, there will likely be backlashes and teething problems to deal with. We can only hope that, once the dust of the White Paper settles, the industry is actually better off for it. Watch this space.