Why Collaboration Holds the Key to Responsible Gambling

Posted by Harry Kane on Wednesday, October 30, 2019

Let’s start with a basic assertion; the true extent and nature of problem gambling in the UK is often misrepresented to the British public. So, although the notion that children are being exposed to gambling at a relatively early age remains uncontested, the scale of this issue and the type of games accessed by minors are key bones of contention.

This information is important, however, as it informs the responsible gambling measures imposed by regulators and has a direct impact on we perceive and tackle the issue going forward. It also informs the overarching strategies deployed by regulators such as the UK Gambling Commission (UKGC), creating a scenario whereby operators are currently shouldering the burden for tackling responsible gambling nationwide.

Whilst this makes sense on a fundamental level, it also creates a potential conflict of interest that forces operators to strike a balance between driving responsible gambling practices and optimising profits.

In this post, we’ll explore the extent of problem gambling further, whilst asking whether a more collaborative approach that involves numerous parties represents the best way of resolving the issue?

Problem Gambling Exposed – Delving Behind the Headline Numbers

Make no mistake; a cursory glance at the number of underage gamblers in the UK makes for uncomfortable reading, whilst the latest reports indicate that this issue has worsened over the course of the last two years or so.

One such audit undertaken by the UKGC in 2018 suggested that the number of problem gamblers aged between 11 and 16 had actually quadrupled since the end of 2016. Overall, the number of youngsters wagering increased to approximately 55,000 during this time, whilst it was also revealed that a further 70,000 were potentially at risk.

Overall, it was discovered that around 450,000 children within the 11 to 16 age bracket also bet regularly, staking an average of £16 per week across a number of different verticals. To put this into context, this accounts for one in seven (or a little over 14%) of the 11 to 16 age demographic in the UK, with the obvious assertion being that the proliferation of online casinos and sportsbooks has made gambling more accessible to impressionable youngsters.

However, there’s also ample evidence to suggest that the prevalence of underage gambling has actively decreased in the UK over a longer period of time.According to a similarly comprehensive UKGC report published two years ago, for example, the amount of underage gamblers in Britain decreased from 23% in 2011 to 12% in the year ending 2017.

So, whilst the number of underage gamblers displaying problematic behaviour may have increased markedly during the last 24 months, the efforts of the regulator and operators throughout the UK has undoubtedly helped to reduce the number of youngsters wagering casually since the iGaming market first began to grow exponentially almost a decade ago.

OK, we hear you ask, but what about problem gambling amongst adults? Once again, the headline figures are from encouraging here, with reports suggesting that a record number of gambling addicts were hospitalised in the NHS last year.

In total, in excess of 100 people were admitted to hospital as a result of “pathological” gambling activity, with this number having apparently increased by 50% in relation to figures from 2017. This number also increased markedly since only a handful of addicts were treated in 2000, when the World Health Organisation (WHO) first recognised gambling disorder as an official medical condition.

There’s far more to these figures than initially meets the eye, however, as whilst an estimated 1.4% of all gamblers in the UK go on to display problem behaviour, this figure increases to a whopping 11.5% for those who regularly play fixed-odds betting terminals (FOBTs).

In this respect, both the government and the UK regulator have taken proactive steps to tackle this issue, primarily by imposing a £2 cap on FOBT stakes and minimising the amount that punters can lose through this vertical.

Sure, this does little to tackle the psychological and compulsive triggers that compel problem gamblers to wager freely in the first place, but it at least restricts their activity and minimises the threat posed by gambling-related harm going forward.

An Issue of Understanding and Accountability – Tackling Problem Gambling

The last point raises an interesting insight in the iGaming space, particularly when determining the role of a regulator in tackling and resolving problem gambling.

Last year, the UKGC announced its core strategic objectives through 2021, with the primary focus being on protecting the interests of customers and preventing gambling-related harm in society. They’ve since introduced a number of measures aimed at realising these goals.

By also holding operators to account and sanctioning them in instances where they fail to comply, the UKGC has established a clear and concise approach.

More specifically, it’s focused on banning irresponsible gambling practices and restricting each punters access to high-stakes gaming, rather than attempting to address the underlying psychological triggers that underpin problem behaviour.

This not only makes perfect sense from the perspective of the commission’s resources and accountability, but it also seems to sit well with the most recent statistics released by the UKGC. After all, it’s clear that the UKGC’s strategy has effectively reduced the number of underage gamblers in relation to 2011’s figures, whilst the decision to regulate FOBTs and slash the maximum stake threshold (taken in conjunction with department for Digital, Culture, Media and Sport) has also made it far harder for problem gamers to indulge their impulsive and reckless tendencies.

Whilst it can always be argued that this type of proactive measure is far from foolproof, it enables the UKGC to accomplish achievable regulatory goals whilst remaining within its realistic remit.

Not only this, but the work of the regulator has also been augmented by several responsible gambling groups and charities, who work to both minimise the impact of gambling-related harm and seek out more proactive ways of protecting those who are at risk of developing problem behaviour.

Take the GambleAware organisation, for example, which often blazes a trail for other groups to follow and continues to adopt a collaborative approach towards resolving the issue of problem gambling.

Most recently, this funding body has partnered with the University of Bristol, as part of a new research project that intends to examine how UK banks and other financial services firms can help individuals who are at risk of becoming problem gamblers.

This project with see GambleAware collaborate with researchers from the university’s Personal Finance Research Centre (RFRC) on a three-year programme, with a clear focus on how the current measures that banks put in place to combat problem gambling can be improved.

The first six months of this project will focus on the effectiveness of current gambling blocks and measures, as members of GambleAware will engage with people who have been affected by problem gambling in a bid to source some direct feedback.

Beyond this, the initiative will also look at the possibility of identifying financial self-help channels for gamblers, as well as the feasibility of creating a ‘single gateway’ for debit self-exclusion.

This will certainly help to build on the foundations that have already been laid by the market leading banks, with Lloyds, Santander and RBS amongst those who have already started to develop payment-blocking functionality for transactions pertaining to both on and offline betting outlets.

Barclays Bank is even further ahead in this process, having announced in December that it will integrate a gambling block measure within all of its customer-facing digital platforms, with a view to empowering customers who want to restrict their spending and turn-off all engagements with gambling-related platforms.

This will instantly block payments made to online gambling accounts or in high-street bookmakers, helping those who are struggling to manage their activity tackle their issue before it begins to escalate.

Whilst such measures have been welcomed, there’s limited evidence regarding their effectiveness, whilst little is known about the profile of those who use these features. This is why GambleAware continues to forge new partnerships and create more comprehensive solutions, in the hope of preventing problem gambling at source and minimising future harm in society. Interestingly, GambleAware has also done sterling work in tackling underage gambling, having previously collaborated with digital family specialist Parent Zone to create a new educational initiative aimed at educating parents on the risks posed to youngsters by online gambling.

This is another proactive measure that extends beyond merely restricting access and tightening age verification processes, as it empowers parents to take responsibility for safeguarding their own children online.

The Last Word – Why Collaboration Holds the Key to Responsible Gambling

We live in a world of sensationalism and hyperbole, where issues are often exaggerated and misrepresented to the British public.

The topic of problem gambling offers a relevant case in point, with the bulk of media reports choosing to focus on headline numbers rather than exploring the objective truth that lies behind them.

For example, whilst the number of children displaying problem gambling tendencies has increased in recent times, the amount of those aged under 16 who wager regularly has decreased by an estimated 9% since 2011.

This enables us to view the issue of underage gambling in a slightly different perspective, particularly when you also consider the recent measures that have been taken to resolve this problem going forward.

Back in February, the UKGC announced that it was going to revise its rules regarding age verification, which have historically allowed operators up to 72 hours to verify the true identity of their customers.

This meant that whilst new players were unable to withdraw winnings until their details had been verified, they still had a brief window of opportunity in which to wager and engage with a number of different betting verticals.

Under the new guidelines, however, operators must verify a customer’s age before they deposit funds into their account or place wagers, creating a scenario where children should find it far more difficult to gamble online.

This, coupled with the more proactive educational work undertaken by GambleAware and ParentZone, is creating dual-pronged regulatory approach that safeguards the wellbeing of children both in real-time and for the future.

This type of approach holds the key to the success of responsible gambling across the globe, as this significant burden cannot be shouldered by regulators and operators alone. As we’ve already said, it may even create a conflict of interests in instances where operators are being asked to regulate their own activity, as betting brands will always have at least one eye on turnover and their bottom line profit margin.

This is where gambling charities are proving to be worth their weight in gold, as they operate from a position of relative objectivity and focus on research and the development of more proactive measures to help players before they display problem behaviour.

So, whilst regulators are creating more stringent guidelines for operators and strengthening verification processes to protect players who may already have an issue, charities and similar organisations can take steps to shield the next generation from gambling-related harm.

It’s clear that banks and the world’s leading financial institutions also have an important role to play in this drive, as they’re able to develop universal payment-blocking technology that completely prevent gamblers from wagering with their debit cards.

This technology would help to reinforce the effectiveness of self-exclusive initiatives such as GamStop, which despite being designed to help players restrict their gambling activity has experienced significant teething issues since its roll-out last year.

One of the main issues has revolved around the ease with which self-excluded players could register for a new gambling account simply by changing their email address and username, but combining this with banking technology would stop payments at source and provide an additional layer of protection for individuals who are struggling with the symptoms of addiction. Whilst the issue of problem gambling is often misrepresented in the media, there’s no doubt that it remains a significant issue facing national regulators. It’s also obvious that collaboration holds the key to preventing problem gambling, as organisations such as the UKGC are limited in terms of the steps that they can take.