A Regulatory Update for iGaming in the UK

Posted by Harry Kane on Tuesday, July 23, 2019

At the beginning of last year, the UK Gambling Commission (UKGC) announced a number of key core objectives through 2021. The vast majority of these were focused on the protection and safeguarding of players, particularly those who may be vulnerable or underage.

It’s also fair to say that the Commission has taken considerable steps to bridge the gap between vision and reality, with the implementation of several new and stringent regulatory measures looking to revolutionise the iGaming market and the conduct of operators from within.

But which of the new regulations have been the most impactful? Here’s a look at three of the regulatory changes that are both helping to protect gamblers whilst also improving the reputation of the iGaming industry as a whole:

1. Introducing a Quicker and More Effective Verification Process

We’ll start with one of the most recently proposals, which was announced by the UKGC after a full investigation into the typical verification deployed by operators nationwide.

One of the key areas for concern here revolved around the use of debit cards to credit iGaming accounts and complete wagers, as underage players (or those who had previously registered with a self-exclusion scheme) could easily use a parents’ credit or debit card to wager for real money after registering with their chosen platform.

The same principle applies to accessible e-wallets, with PayPal, Skrill and Neteller all enabling underage and vulnerable gamblers to wager seamlessly online.

At the same time, concerns have also been revolved around the verification process, which has historically taken operators 72 hours to complete. During this time, however, players can usually deposit funds into the account, qualify for a welcome bonus and place wagers, creating a scenario where children are allowed to bet and play casino games far too freely.

Newly implemented laws have put paid to this, however, as they require all operators to fully verify and age and identity of new users before they’re eligible to make their first deposit or place bets online.

This is a breathtakingly simple but effective way of tackling problem gambling, whilst it’s interesting to note that the new verification process will be applied to free-to-play games too.

The reason for this is simple; as these games can potentially hook underage players and afford them an entry point into the dangerous world of online gambling.

2. An Updated Privacy Policy for Players

Another regulatory update has also been introduced with players in mind, with this example helping to safeguard the identity of individual customers who frequent online casinos.

Arguably more of a technical amendment, this new rule essentially requires to update their privacy policy for players and provide a less intrusive consumer experience overall. More specifically, it compels casino sites to update both their privacy and cookie policy immediately, negating the need to request additional date or personal information from players when they attempt to withdraw their funds.

This will also tie into the new verification process insisted on by the UKGC, whilst tackling one of the major sources of complaint in the iGaming industry during 2018. When you register for a new account at an online casino account, the operator in question should now request verification information and documents that confirm your identity before you start wagering.

This should also be cross-checked wherever possible, whilst it’s no longer acceptable for operators to request such information after you’ve started wagering or at the point where you want to withdraw winnings from your main cash balance.

As you can probably tell by now, this is one of several small regulatory changes aimed at improving the online gambling experience, primarily by creating fair and more transparent verification processes that don’t restrict your ability to wager to withdraw cash.

Such rules should also serve to create a less intrusive and frustrating iGaming experience for players, whilst simultaneously improving the reputation of the industry and those who operate within it.

3. A Quick Glance at New Look Casino Bonuses in the UK

Welcome bonuses have become central to the appeal of the online gambling market, with operators leveraging incredibly generous offers to ensure that they’re able to compete in a constantly-growing industry.

These welcome offers typically come with so-called wagering requirements, which refer to the precise amount that you’ll need to play through before you can withdraw any bonus winnings from your account.

These usually vary anywhere between 30-times and 50-times the value of the bonus, and whilst the precise terms will vary from one promotion to another, there’s no doubt that you’ll have to wager significant sums to bank your winnings.

One of the main concerns here is that each player’s deposit funds are often tied up in any wagering requirements associated with a particular welcome bonus, creating a scenario where you may not be able to withdraw your own money as a new player.

This is problematic from an ethical perspective, but it can become even more of an issue in instances where you’ve credited your account with £100 or so. So, this is something that the Commission is beginning to crackdown on, as players should never be restricted from accessing any funds that they’ve deposited directly into their account.

At the same time, a 2017 report by the Competition and Markets Authority (CMA) found that casinos should not be allowed to withhold winnings arising from free bet bonus offers. This is one of numerous bonus types available in the digital age, and it remains an important distinction for operators to make going forward.

This report is definitely something that the UKGC has acted on, as it backed the CMA in launching enforcement action against several iGaming operators that were deemed to have broken consumer law a couple of summers ago.

The Commission has also imposed a number of regulatory changes aimed at clarifying welcome bonus terms and creating greater transparency for players, and it’s hoped that will reduce the number of complaints made by customers going forward.