Detailing the new changes, the Commission said these are in response to the Gambling Act review white paper. Published in April 2023, the document sets out numerous proposals to change the way gambling in Britain is regulated.
Making deposit limits easier for players
From 31 October, all licensees must prompt customers to set a financial limit before making their first deposit. A number of UK operators have similar deposit limits already in place, but this UKGC update will ensure the measure is enforced across licensed operators.
In its note the regulator said players must be able to easily review and alter their limit after the initial amount is set.
Licensees will also be required to remind users every six months to review their account and transaction information as this will help players to decide whether they want to change existing, or set new, deposit limits.
“These rules will take good practice already offered by some operators and expand that so customers can expect the same standards across the industry,” the Commission said.
These measures aim to give players “more effective” ways to manage their gambling. This, the Commission said, will make it easier for consumers to maintain deposit limits on their online accounts.
The UKGC also confirmed it will a launch a short, supplementary consultation on proposals to improve consistency and transparency and help consumers to understand how financial limits work.
This follows research that highlighted confusion among consumers around deposit limits, after certain operators changed their processes.
Additional changes for new statutory levy
Following some industry confusion around the statutory levy imposed by the Commission in November, the regulator has provided additional clarification around what the measure will require.
It said as a result of the levy, the Commission would remove its code which requires operators to make annual financial contributions to a list of research, prevention and treatment organisations. This falls under the GC’s ‘Licence Conditions and Codes of Practice’.
Confirmed in November, licensed businesses will be required to pay between 0.1% to 1.1% of their gross gambling yield (GGY) to the levy. The exact rate will be determined based on the sector, vertical and type of gambling they offer.
This will also take into account licensees’ operating costs and the risk profile of the products they offer.
Once the levy is in place, which will be later this year, the previous Licence Conditions and Codes of Practice requirement will become obsolete.
The exact date of when the statutory levy will commence is yet to be confirmed. However, it is widely believed that this will begin from 6 April. The Commission said it will notify licensees of the date of implementation once it is finally announced.
Greater transparency on customer funds protection
Additionally, the Commission is seeking greater customer protections over the funds held by licensed operators within player accounts. At present, licensees must set out in their terms and conditions whether player funds are protected in the event of insolvency.
This should also include the level of protection and the method by which this is achieved. This information must be available to players upon making their first deposit.
On top of this, licensees must clarify the level of protection offered to players. This should be set out as ‘not protected – no segregation’, ‘not protected – segregation of customer funds’, ‘medium protection’ or ‘high protection’.
From 31 October, operators holding user funds as ‘not protected’ in the event of insolvency must actively remind consumers every six months that their funds are not protected.
“While there is no legal duty on gambling operators to protect customers funds in the event of insolvency, many of them do so voluntarily,” the Commission said.
“The changes will help consumers understand which operators protect their funds and which do not. This information will support them in making choices about who they gamble with.”
Changes ensure gambling is “fair and open”
“These changes illustrate our commitment to ensuring gambling is fair and open by improving consumer empowerment and choice,” said Tim Miller, executive director for research and policy at the Commission.
“[They] will help consumers decide on deposit limits, enable them to keep track of their spending and ensure they are fully aware of what happens to their funds should an operator become insolvent.
“We will now continue our work to deliver our remaining white paper commitments, including our programme of evaluation.”
Original article: https://igamingbusiness.com/legal-compliance/gambling-commission-consumer-control-regulatory-changes/
