2021 could see the biggest shake-up to British gambling laws since 2005. A review of current laws and potential reforms are being assessed by the Department for Digital, Culture, Media and Sport (DCMS), and it’s possible that the betting landscape in the UK is set to change quite substantially.
UK Gaming Act 2005
In 2005 the UK Government introduced the Gambling Act, which set out to achieve three principal objectives in England, Scotland and Wales:
- Stop gambling being a source of crime or supporting criminal activity
- Make sure that betting is carried out fairly
- Protect children and other vulnerable members of society
Note that gambling in Northern Ireland (apart from the national lottery) falls under the jurisdiction of the Betting, Gaming, Lotteries & Amusements (NI) Order 1985.
As a result, the Gambling Commission was formed to regulate the industry, and lotteries were taken under its wing along with casinos and sports betting. Online betting, including casinos, was gaining prominence around the turn of the millennium and found itself subject to the commission’s control as well.
The new legislation outlined the necessity for online gambling operators to obtain a license from the local authority of the territory where they are based. The hope was that by regulating and tracking the online gaming companies active within the UK, it would be possible to extract a justified and proportional amount of tax. The main issue with this section of the legislation is that it didn’t take into account that business in different areas of the United Kingdom are subject to differing levels of taxation.
2014 Gaming Act Reforms
It quickly became apparent that many online operators were simply switching their headquarters to territories like Gibraltar, where business taxes are significantly lower than mainland Britain. As a result, several changes were made:
- Taxes levied on bets from UK customers placed on sites based in Gibraltar would rise from 1% to 15%.
- All current licences would have to be exchanged for a new one that is controlled centrally by the Gambling Commission rather than the local authority.
- Online casinos had to display clear evidence to the commission of how they were policing their sites.
2021 Gaming Act Reforms
In early December 2020, a review was launched into the current legislation and how relevant the laws are, given that the online gambling market has grown so dramatically over the last few years. The beginning of 2020 saw the ban on credit cards being used as a payment method at UK-based online casinos, but critics say this change doesn’t go far enough and that further amendments are necessary.
Technology advances continuously, and now the majority of UK residents have access to online gambling through smart phones, tablets and computers. The convenience of access has raised some concerns for industry regulators that many customers are playing too regularly and spending beyond their means.
One problem with the new legislations, however, is the fact that many players are now looking to offshore casinos in order to get access to bigger bonuses and better promotions. Sites like casinosnotongamstop.me make it easy for casino players to access these sites, which are growing in popularity. Casinos licensed in other jurisdictions are not as restricted as those licensed by the UKGC in terms of marketing and promotions. Similar trends are seen in other countries where restrictions have been tightened. Casino portals like casinoutansvensklicens.pro, which lists off-shore casinos, are becoming popular I Sweden, for example.
Some of the suggested changes that are being looked into include:
- Stake limits to prevent players wagering large amounts at any one time and going big to try and chase losses
- Prize limits to deter customers from making large bets in the hope that they can hit the big time with a one-off jackpot
- Customer affordability checks, to ensure that casino owners only allow customers with adequate financial resources to access their gambling products
- Ban on sports sponsorship. This could prove to be an incredibly unpopular move as many football clubs in the English football leagues collect important revenue from current shirt sponsorship and board advertising in their stadiums
- Tougher controls on black-market operators. Some offshore casino sites are known for their relaxed approach to age verification and there is concern that many underage players from the UK are accessing these sites regularly.
- Legal support for customers who wish to pursue a claim against gambling companies in the event of a betting dispute
- Legal obligations for casino owners to contribute to charities set up to rehabilitate players who have formed an addiction.
It’s not known how far the new measures will go, but it’s certain that at least some of the above changes will take effect over the new year. Many MPs are backing the reforms so it’s bound to attract a great deal of media attention in the UK over the next few months.