The Gambling Act 2005, which came fully into force on September 1, 2007, aimed to consolidate existing gambling legislation and update the regulatory structure for online gambling, casinos and fixed odds betting terminals in betting shops. The UK market accelerated as the Act increased competition and allowed betting companies to advertise and in the decade to March 2019, total gross gambling yield rose from £8.4bn to £14.3bn.
Key principles of the 2005 Act
The three key principles of the Act are that: gambling should not be associated with crime in any way; that gambling should be fair and transparent, and children and other vulnerable people should be protected from being harmed or exploited by gambling. However, on the last point, the percentage of those who identified as problem gamblers increasing from 0.9 per cent in 2012 to 1.2 per cent in 2016, according to the NHS. The Act also created a new unified industry regulator, the UK Gambling Commission (UKGC).
Gambling (Licensing and Advertising) Act 2014
Even before the latest planned review of the 2005 Act, the Gambling (Licensing and Advertising) Act 2014 closed loopholes in the Gambling Act 2005, tightening up the regulation of online casinos operating remotely but providing services to UK gamblers, requiring them to hold a UKGC licence to transact with British consumers.
The 2014 Act did not stop accusations in the news that betting companies continued to exploit vulnerable customers and several large companies were fined millions by the UKGC in 2018 and 2019 for failing in their social responsibilities. According to topratedcasinosites.co.uk a strict set of rules in place designed to weed out “unsavoury elements” is necessary. It is hoped that the review of the 2005 Act will ensure this happens.
Latest changes
The UK gambling industry has faced a swathe of regulation in the past couple of years with stricter age-verification checks and higher taxation. In April 2019, the stake permitted on fixed odds betting terminals was cut from £100 to £2. Whilst considered good news to many, James Noyes, a former aide to ex-deputy Labour leader Tom Watson, advising on the Gambling Act review: “It makes no sense that stake limits for physical machines are enshrined in law, yet there is no equivalent for online gambling.”
In February 2020, Neil McArthur, UKGC chief executive, said that a credit card ban in gambling, to take effect from April 14, 2020, would reduce the risks of harm to consumers from gambling with money they do not have.
Planned changes
In November 2019, the all-party parliamentary committee on gambling-related harm called for a £2-per-bet limit to online slot games to bring them in line with betting shops, to combat what they have called a “public health crisis” of gambling addiction in the UK. In February 2020, McArthur said the UKGC was looking at setting limits to online stakes, to keep in line with brick-and-mortar casino rules and said that a decision was due to be made within six months.
Brigid Simmons, chair of the Betting and Gaming Council, which represents more than 90 per cent of UK gambling companies, said that a House of Lords select committee which had grilled gambling executives about shirt sponsorship in sport and the issue of controversial “VIP” schemes, used by companies to encourage high-spending gamblers to bet more could lead to both being stopped in an upcoming review of the UK’s Gambling Act 2005.
Conclusion
On November 10, 2020, the Department for Culture and Media announced that the review of the UK Gambling Act 2005 faced with yet another delay, even though it is agreed that the 2005 Gambling Act does not reflect the needs of an age where most betting is now done online.
It is hoped the review will lead to the founding of a new body, or multiple bodies with different responsibilities, to replace the UKGC. In the meantime, companies are cautious about their future and looking at expanding in Brazil, Asia and the US. Many in the industry fear a more severe clampdown could blunt the rapid growth of the UK market, or push gamblers into the offshore market as an unintended consequence.
Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.gamcare.org.uk/.