The game may soon be changing for British online gambling enthusiasts. At the end of February 2019, Tom Watson, the deputy leader of the United Kingdom’s Labour Party, asked for new, stricter regulations for online gambling designed to lessen the likelihood of gambling abuse and addiction. Current laws, which were passed by Labour Prime Minister Tony Blair in 2005, largely predate the digital age and do not address the concerns raised by online bookmakers and casinos.
New Proposed Provisions
Watson has requested a cap on how often and how much money online gamblers can bet, based on similar restrictions recently established by the UK for fixed odds betting terminals (FOBT) with physical locations. While the betting threshold for these machines was once £100, it was reduced to £2 by regulation passed late in 2018. This change is slated to take effect in late 2019, driven by the damage these terminals can potentially cause for those addicted to gambling, their families, and their communities.
Online casinos will be responsible for implementing a verification system to ensure that users are gambling with their own money. As part of this provision, credit card payments may be disallowed. Watson notes that the current system leaves problem gamblers vulnerable to making bets they cannot afford. Reputable online casinos such as Casino.com UK promote a responsible, fair, and secure online gaming environment through licensing and regulation by the UK Gambling Commission and Gibraltar Gambling Commissioner.
Criticism for One-Size-Fits-All Regulation
Both major UK parties support Watson’s recommendations, but some industry leaders have spoken out against his proposal. A statement from the Remote Gambling Association noted the danger of driving users to international gambling sites with few or no regulations. Other criticism of the proposal hinges on the behavioural effects of addiction, suggesting that overly strict gaming rules will drive individuals who are addicted to gaming elsewhere instead of facing the problem head-on.
Gambling operators are also facing a tax increase to compensate for the budgetary loss created by the new FOBT limits, which is projected to reach £1.10 billion over a five-year period. While each transaction was once subject to a 15 percent tax, this has been boosted to 21 percent. Casino owners have criticised these changes as too radical and note that the tax will likely put operators out of business.
A Societal Issue
Watson’s regulatory push comes in the wake of several high-profile online gambling scandals in the UK. In November 2018, the largest government enforcement action resulted in fines of £14 million for three online gaming companies. The watchdog agency found that these digital casinos failed to protect problem gamblers and take the appropriate steps to prevent money laundering through their platforms.
With the new regulations in place, many UK online gambling companies are making plans for U.S. expansion by the end of 2019. While the UK online gambling scene may be seeing some changes, there will still be plenty of online casinos, games, and other activities to provide lots of entertainment.
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