GamStop – Could it be Mandated by the UKGC?

Posted by Harry Kane on Thursday, October 22, 2020

If you’ve heard of the so-called ‘GamStop’ system, the chances are that you will have encountered relatively negative new stories and evidence of its perceived failures.

However, this entity essentially provides a universal self-referral program for players who are showcasing problem gambling behaviour and want to ban themselves from online betting platforms for a predetermined period of time.

Launched in April 2018, it’s estimated that well in excess of 50,000 people have signed up to GamStop in a little more than two years, and there’s no doubt that it can play a crucial role in helping to safeguard vulnerable players in a fast-growing and increasingly competitive market.

In this article, we’ll ask how prevalent and effective this platform is, while asking whether operators could soon be mandated to participate in the scheme by the UK Gambling Commission (UKGC)?

How Effective is the GamStop System in the UK?

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As we’ve already touched on, GamStop has rarely been in the news for the right reasons since its inception two years ago, with one report at the beginning of 2019 finding that the system had significant issues and could be circumnavigated in some instances.

More specifically, gamblers who had previously self-referred were subsequently able to sign up for new iGaming accounts and place bets online, simply by entering a brand new email address and changing their user ID and password.

This highlighted a significant pitfall in the system, with the UKGC proposing a comprehensive review and making additional recommendations to improve the functionality and efficiency of the platform.

Another key aspect of this report highlighted the fact that iGaming operators in the UK aren’t currently mandated to participate in the GamStop scheme, with up to 35% of all licensed brands having so far refused to offer access through their websites. Essentially, this means that they’ve yet to partner with the regulator-backed initiative, and this creates significant gaps in the system and pitfalls through which vulnerable players are likely to tumble.

There are several reasons why brands may not want to participate in the scheme of course, with some players placing privacy and anonymity ahead of independent and third-party safeguards.

As a result of this, some gamblers may ultimately see GamStop as a major infringement on their rights to gamble as they see fit, while harbouring concerns that their data could be accessed and subsequently shared more prolifically online.

Of course, there’s little truth or substance to these concerns, but they may be enough to encourage operators to avoid registering with GamStop and take advantage of the fact that it’s a voluntary program.

Why Mandating GamStop Participation May Ultimately be Crucial

Regardless of this, there’s no doubt that the decision of operators to avoid the GamStop initiative is having a huge impact on its effectiveness.

After all, the system can only provide comprehensive and universal coverage if it includes all licensed operators in the UK, as otherwise problems gamblers who are genuinely struggling with their compulsion will also be able to find sites through which they can wager.

In many ways, this remains the single most pressing and challenging issue for the UKGC, which has already taken proactive steps to prevent problem gamblers from signing up using a different email and login details.

More specifically, the regulator has changed and updated the verification process used by online casinos, mandating operators to fully confirm the age and identification of new players before they credit their account and wager.

Previously, brands had up to 72 hours to verify the identity of new players after their registration, creating a limited window in which potentially vulnerable customers could wager freely. Similarly, the verification process was nowhere near as stringent, meaning that it was far easier for players to hide behind a new email and username.

Now, all players who are new to a site must provide evidence to confirm their identity if an operator is unable to do this remotely, while the stringent nature of modern checks requires customers to use a false address and completely new ID if they’re to manipulate them successfully.

With these points in mind, it seems that the regulator has little choice but to ultimately mandate participating in the GamStop initiative, as otherwise the system is always likely to be undermined by a single (but undeniably, fatal) flaw.

The Last Word – When is GamStop Likely to be Mandated?

We must also remember that the UKGC has the power to mandate participation at any time, with this having set forth by Parliament. Similarly, the commission has already laid out its own commitment to safeguarding vulnerable players and making GamStop a success, as per its core strategic objectives through 2021.

As a result of this, we’ve undoubtedly seen a more stringent regulatory climate emerge since 2018, with this having manifested itself in the form of brand new guidelines (including more robust verification measures and the decision to ban credit card gambling in the UK) and a series of high-profile financial sanctions.

The government is also increasingly inclined to support the UKGC and legislative in the iGaming space, having previously imposed the £2 betting cap on FOBTs back in 2019.

Now, its focus is clearly on iGaming and virtual sports betting, and in conjunction with the regulator it’s aiming to crack down on regulators and compel brands to take further responsibility for the wellbeing of players.

At the same time, the government is also planning a comprehensive review of the 2005 Gambling Act, with this being driven largely by the All-Party Parliamentary Group (APPG) for gambling-related harm. This would most likely include a change to the licensing criteria that iGaming brands must meet if they’re to operate legally in the future, while it most likely be applied both retrospectively and to brand new applications.

This would provide the ideal opportunity for the UKGC to mandate participation in the GamStop initiative, making this a key licensing requirement for all brands across the length and breadth of the region.