Young online gamblers in the UK may face new limits on the amount they can bet as the government considers imposing stricter regulations on the online gambling industry. These will be outlined in a long-awaited White Paper, the new Culture Secretary, Lucy Frazer, promised would be published “soon”. So what could this mean for Britain’s £10bn gambling industry and its customers, particularly young people?
The issue of gambling addiction is a concern, with an estimated 250,000 to 460,000 problem gamblers in Great Britain. The government’s proposed measures aim to address this issue by promoting responsible gambling, limiting excessive betting among young people, and providing support for those affected by gambling addiction.
One of the proposed measures is to restrict the maximum stakes on online slot machines to between £2 and £5, bringing them in line with high-street machines commonly found in betting shops. The move is aimed at promoting responsible gambling and preventing excessive betting among young people.
The introduction of betting limits on online slot machines is not unexpected, and some licensed online casinos have already taken preemptive action by reducing the maximum stakes on their platforms in anticipation. Dan Waugh of gambling research group Regulus Partners noted that while the new laws may result in a revenue and profit hit for gambling firms, it would likely be less severe than it would have been a few years ago, indicating an increasing awareness among operators of the need to prioritise responsible gambling practices.
In addition to the betting limits, the government is also considering imposing tougher affordability checks on gambling firms to ensure that customers are not gambling beyond their financial means.
Another significant change being considered is the introduction of a mandatory levy on gambling companies to fund addiction treatment and support services. Currently, gambling firms make voluntary contributions towards research, education, and treatment of gambling harm. However, the proposed mandatory levy would reportedly require all gambling companies to contribute 1% of profits towards addressing gambling addiction and providing support to those affected by it. This is one of the more controversial of the proposed reforms.
The Betting and Gaming Council (BGC), which represents gambling companies, has already stated that its largest members have pledged £100 million over four years towards addressing gambling harm. And has also expressed concerns about a blanket tax on all gambling companies, arguing that it would be unfair to firms operating land-based betting shops, which face higher running costs and property taxes.
In addition to the proposed changes in betting limits and mandatory levy, there are discussions about banning sponsorship on the front of team shirts in the Premier League. Currently, many gambling companies have their logos prominently displayed on the jerseys of football clubs, which can contribute to the normalisation of gambling among young fans.
It is still unclear exactly what and how effective the new measures will be in addressing the issue of gambling addiction and promoting responsible gambling practices among young online gamblers in the UK. While the introduction of betting limits, tougher affordability checks, and a mandatory levy on gambling firms are significant steps towards addressing the social costs of gambling addiction, there are concerns and debates about their feasibility and impact on the industry.
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