How are the UKGC Making Online Gambling Safer?

Posted by Harry Kane on Thursday, May 10, 2018

There’s no doubt that the UK Gambling Commission (UKGC) bears a great deal of responsibility in the modern age, as it strives to create a safe and prosperous environment for customers. This represents a logical evolution in the role of the UKGC, which has already presided over significant financial growth in the marketplace and revolutionised the experience available to players.

This is reflected by the UKGC’s core strategic objectives through until 2021, which are focused on creating a safe, fair and transparent marketplace while also enhancing the reputation of the industry as a whole.

This is now beginning to translate into a number of practical steps, which will help the market to evolve further and offer key advantages to gamblers. Here’s a brief summary:

The Temporary Suspension of Free-to-Play Demo Games

There has been a huge focus on so-called “problem gamblers” in the UK, particularly after it was revealed that around 25,000 children aged between 11 and 16 currently fit into this category.

This has prompted the UKGC to take decisive action as part of its core operational strategy, with the regulator having recently suspended operators from offering free-to-play demo games in instances where they cannot verify a customer’s age. In theory, this includes social media platforms such as Facebook, which offer social games with a gambling bent but allows individuals to register for an account from the age of 13.

The hope here is that regulators will be compelled to improve the efficiency and the speed of their age verification process over time, or risk losing out on lucrative business.

Introducing Spending Limits Pending ‘Affordability Checks’

Regulators across the globe have also spoken extensively about the potential for vulnerable gamblers to wager excessive amounts of cash without restriction. This is one of the main issues in the online marketplace, particularly when you consider the accessibility of virtual casinos and the emphasis that operators place on behavioural marketing.

With regards to the latter, while players are able to request that operators do not contact them with marketing materials as they look to abstain from activity, it’s extremely difficult to impose a blanket ban that helps to safeguard the interest of vulnerable gamblers and customers.

As a result of this, the UKGC has recommended that gambling firms ensure that they set limits on the spending of all new customers, at least until proposed affordability checks are carried out.

The purpose of these checks will be to determine whether or not players are spending more than they can realistically afford, while also appraising their overall level of daily activity.

In time, this type of measure will most likely be extended to establish individual betting limits and thresholds for each players, but for now it will be enough to introduce this concept and begin to drive more responsible gambling online.

Forcing Operators to Impose More Transparent Terms and Conditions

Last year also saw operators questioned about their approach to the terms and conditions applied to promotional offers, which came under heavy criticism from both industry watchdogs and customers alike throughout 2017.

One of the main concerns here is the lack of transparency surrounding individual promotions, with a number of complaints focused on the misleading offer of free credit as part of complimentary agreements or deposit matches.

More specifically, customers complained that while bonuses offered punters a fixed amount of free credit as part of a promotion, they also included a number of vague and indistinct restrictions relating to future withdrawals. In fact, gamblers were required to gamble a specific amount of cash before they were able to withdraw any winnings, and the UKGC considers this as a significant ethical issue.

So, as part of the UKGC’s forward-thinking strategy, operators will be forced to comply with new transparency regulations, while customers will have far greater and more instantaneous access to any money that they win through a promotional offer.

Operators who do not comply with these rules with face serious sanctions, but not until a full investigation has been concluded and precise regulations have been laid out.

Driving Customer Funds’ Protection and Regulating Dormancy Fees

The issue of withdrawing funds has become a key driver of the UKGC’s policy, particularly after a number of high profile incidents and complaints from customers. Many of these revolve around a lack of protection for so-called dormant accounts and dormancy fees, which have left some players out of pocket after having access to their account blocked.

In one case, a punter was barred from accessing his account with a leading UK operators, despite having being around £1,300 in credit. While the customer claimed to have made numerous attempts to withdraw his balance since 2014, the brand taken £800 in dormancy fees before closing the account and preventing him from claiming what was rightfully his.

While dormancy fees are commonly used by banks and online gambling operators, they are widely questioned by watchdogs while the instances in which they’re applied have also come under tremendous scrutiny. Their application in the virtual gambling market is particularly controversial, especially as the terms of dormancy are not clear to customers or entirely transparent.

As a result of this, the UKGC is taking steps to create more stringent regulations for the application of dormancy fees, their value and the way in which they’re explained to customers.

In the longer-term, they may be outlawed entirely, given their outdated nature and lack of context in a purely digital industry.

The Last Word

These changes reflect the current outlook of the UKGC, as the regulator looks to protect customers (particularly those who are vulnerable) and enhance the underlying reputation of the industry as a whole.

They also represent the tip of the iceberg in terms of online gambling reform, with much more work to be done if the regulator is to achieve its objective through 2021.

With economic, social and technological challenges also impacting on the marketplace, further regulatory measures may be crucial if online gambling is to retain its status as a growth industry.