A Change of Ownership for GamStop – What Does This Mean?

Posted by Harry Kane on Tuesday, October 1, 2019

When the ground-breaking GamStop platform was launched in April, 2018, it was considered to be the jewel in the UKGC’s responsible gambling crown.

Developed in conjunction with the Remote Gambing Association (RGA) as part of the regulator’s core strategic objectives through 2021, GamStop was established a national self-exclusion scheme that enabled self-identified problem gamblers to ban themselves from online betting and gaming platforms.

However, the scheme has endured a number of issues and controversies since its launch and has previously been described as being unfit for purpose by critics. There may now be light at the end of the tunnel for the initiative, however, with a recent shift in ownership representing a small but important step forward.

The GamStop Initiative: A Brief History

Just eight months after its launch, more than 50,000 gamblers in the UK had signed up to the GamStop initiative, whilst this number has swelled further since January of this year.

However, the New Year also brought the first signs of struggle for the scheme, which having experienced some technical difficulties was subsequently exposed as being ineffectual by an in-depth BBC report.

According to a report by BBC Radio 5 Live Investigates, vulnerable players who were signed to the self-exclusion scheme could easily open a brand new account and continue wagering with just a couple of administrative changes. More specifically, by misspelling their surname or using an alternative email address, players who had self-identified as being problem gamblers were able to open new casino accounts, wager and even cash in on welcome bonuses.

Some players were even able to access up to £50 in no-deposit bonuses and free bets, whilst receiving additional promotional offers that afforded them more free cash with which to bet. In the immediate aftermath of the report, GamStop’s Fiona Palmer admitted that the service was not working well enough, whilst the UKGC also commented that significant changes were required for the platform to achieve its objectives.

Fortunately, this has led to proactive and positive changes to GamStop, with both the UKGC and the RGA working to ensure that the scheme is fit for purpose going forward.

A Change in Ownership – What Will This Mean?

In the most recent development, the RGA (which was previously the sole member and operator of the self-exclusion scheme) has withdrawn its membership and transferred ownership to the initiative’s current directors.

This not only underlines GamStop’s status as an independent, nonprofit entity, but it also marks the scheme’s shift away from being a centrally controlled and industry-led initiative.

There have been other affiliated changes too, including the appointment of Addaction CEO Mike Dixon as a non-executive director.

Dixon is a former policy advisor at 10 Downing Street, and he comes with a wealth of experience in the voluntary sector. Serving along existing GamStop board members Jenny Watson CBE, Dr. Jo Watts, Kevin Beering and Roger Parkes, the scheme now boasts a clear customer-centric approach that will help to safeguard gamblers nationwide.

The split away from the RGA is also symbolic in its nature, as it marks the birth of an independent self-exclusion scheme that no longer has a direct association with the nation’s leading online casinos and sportsbooks.

Whilst there’s no suggestion that the RGA ever had a conflict of interests whilst overseeing the development of GamStop, it’s fair to say that having an independent self-exclusion scheme is ultimately beneficial for all parties involved.

From the perspective of the UKGC, the regulator has also been looking to introduce new measures that can improve the appeal and the effectiveness of GamStop.

One of these is a significant change in the verification process used by operators, which continues to rely on the information provided by customers as the UK lacks a National ID Scheme.

Whilst there’s no simple way to negate this issue in the current social and technological climate, the regulator has taken steps to tighten the age verification process and prevent problem gamblers who are underage from wagering online.

This technology can also be applied to adult gamblers, as the new rules prohibit casinos from allowing new players to wager until they’re identification, address and age have been fully verified.

Previously, operators had a total of 72 hours to verify the identification of new customers, during which time players were only restricted from withdrawing their winnings.

However, they were still able to deposit funds into their account, qualify for relevant welcome bonuses and place wagers freely.

There’s absolutely no doubt that more stringent verification measures will create superior safeguards for both problems players and those who may be prone to addiction in the future. It will also augment the existing GamStop initiative, by making it harder for players who have previously self-excluded from create new identities online.

The Future for GamStop and Responsible Gambling in the UK

These small but important changes hint at a brighter future for GamStop, and the individual players who rely on this initiative to help them manage and restrict their activity.

Now established as an independent and forward-thinking initiative that’s starting to benefit from new and more stringent ID verification processes, GamStop has a far greater chance of realising its full potential and become a genuine success in the future.These improvements will also hopefully create a scenario where the UK’s nation self-exclusion scheme can become a mandatory inclusion for all future licensing decisions.

More specifically, the UKGC has always wanted to make signing up to GamStop a mandatory licensing condition, as whilst the vast majority of UK operators are actively participating in the scheme there remains a select few that have yet to join.However, the regulator has been unable to compel applicants to integrate with the GamStop solution as a mandatory requirement, due to its various flaws and underlying technical issues.

This is creating a major issue for the regulator, as GamStop can only ever be as strong as the number of operators who are registered to participate. For every operator that isn’t compelled to join, there’s a significant efficiency gap that’s hard for responsible gambling authorities to bridge.

Fortunately, GamStop is moving ever closer towards resolving its issues and fulfilling its potential, and this is something that will ultimately benefits players nationwide.