Is Online Casino Legal In Uk
Gambling Legal In Uk you try out a new online casino. They have tons of splashy games, cash and free Gambling Legal In Uk spin bonuses, daily tournaments and more! On your desk-top, laptop, tablet or phone, an online casino will help you shed the coronavirus blues. Online casinos are legal in the UK. They are licensed and supervised by The Gambling Commission of Great Britain 1 (UK Gambling Commission, UKGC, Commission) and local authorities. It is essential to comply with the requirements set out in the Licensing Conditions and Codes of Practice 2 (LCCP).
Online casinos, also known as virtual casinos or Internet casinos, are online versions of traditional ('brick and mortar') casinos. Online casinos enable gamblers to play and wager on casino games through the Internet. It is a prolific form of online gambling.
Online casinos generally offer odds and payback percentages that are a bit higher than land-based casinos.[citation needed] Some online casinos claim higher payback percentages for slot machine games, and some publish payout percentage audits on their websites. Assuming that the online casino is using an appropriately programmed random number generator, table games like blackjack have an established house edge. The payout percentage for these games are established by the rules of the game.
Many online casinos rent or buy their software from companies like CryptoLogic Inc (now Amaya), International Game Technology, Microgaming, Playtech, and Realtime Gaming.
Types
Online casinos are broadly divided into two categories based on the software they use: web-based and download-only casinos. Traditionally, online casinos would include only one of the two platforms. However, with advanced technological changes, an online casino can now accommodate both.
Web-based
Web-based online casinos (also known as flash or no-download casinos) are websites where users may play casino games without downloading software to their local computer. Games are mainly represented in the browser plugins Macromedia Flash, Macromedia Shockwave, or Java and require browser support for these plugins. Besides the plugins and browser, a stable internet connection is required to have a seamless gaming experience as all graphics, sounds, and animations are loaded through the web via the plugin. Some online casinos also allow gameplay through a HTML interface.
Apple devices such as iPod, iPad, and iPhone cannot play Flash games as the technology is not supported. To access the no download casinos using the iOS platform, you'll have to download browsers such as Google Chrome, Firefox, or Opera Mini.
Download-based
Download-based online casinos require the download of the software client in order to play and wager on the casino games offered. The online casino software connects to the casino service provider and handles contact without browser support. Download-based online casinos generally run faster than web-based online casinos since the graphics and sound programs are cached by the software client, rather than having to be loaded from the Internet. On the other hand, the initial download and installation of the casino's software take time. As with any download from the Internet, the risk of the program containing malware exists, which makes it less popular among skeptical casino players.
Games
Virtual
Also known as software-based online casino games, the outcome of these games is determined using a pseudorandom number generator (PRNG) software. This software ensures that every deal of the card, the outcome of a dice throw, or the results produced by the spinning of a slot machine or roulette wheel is totally random and unpredictable. PRNGs use a set of mathematical instructions known as an algorithm to generate a long stream of numbers that give the impression of true randomness. While this is not the same as true random number generation (computers are incapable of this without an external input source), it provides results that satisfy all but the most stringent requirements for true randomness.
When implemented correctly, a PRNG algorithm such as the Mersenne Twister will ensure that the games are both fair and unpredictable. However, usually, the player has to trust that the software has not been rigged to increase the house edge, as its inner workings are invisible to the user. Properly regulated online casinos are audited externally by independent regulators to ensure that their win percentages are in line with the stated odds, and this can provide a degree of assurance to the player that the games are fair, assuming the player trusts the regulator.
Live dealer
Live dealer casino games are the complete opposite of software-based games. Instead of depending on software to determine the outcome of the roulette spin, dice throw, or deal of a card, these games depend on real-time results. This is possible as the games are streamed in real-time from a land-based casino or a studio recreated to mimic a land-based casino.
To ensure that players have an easy time playing these games and that the land-based environment is fully recreated, software developers include innovative features such as the chat feature. This enables the player to type your message to the dealer and they can respond back verbally. The live chat feature can also be used to communicate with other players seated at the table following a set of rules laid down by the casino.
The results of the physical transactions by the dealer, such as the outcome of the roulette wheel spin or the dealing of cards, are translated into data that can be utilized by the software by means of optical character recognition (OCR) technology. This enables the player to interact with the game in much the same way as they would with a virtual casino game, except for the fact that the results are determined by real-life actions rather than automated processes.
These games are a lot more expensive for websites to host than virtual games, as they involve a heavier investment in technology and staffing. A live casino studio typically employs one or more cameramen, several croupiers running the various games, an information technology manager to ensure that any technical hitches are dealt with swiftly, and a pit boss that acts as an adjudicator in case of disputes between players and croupiers.
In most cases, this requires at least a three-room setup, comprising a live studio, a server/software room, and an analyst’s room. The configuration of these rooms varies from casino to casino, with some having several gaming tables in one room, and some having a single table in each room.
The high running costs involved with operating live dealer games is the reason why online casinos only tend to offer a handful of the most popular games in this format, such as roulette, blackjack, sic bo, and baccarat. In comparison, the running costs associated with virtual games are very low, and it is not uncommon for online casinos to offer hundreds of different virtual casino games to players on their site.
Online casinos vary in their approach to the hosting of live games, with some providing live games via their own television channel, and others offering the games exclusively via their website. In the case of televised games, players can often use their mobile phone or television remote controls to place bets instead of doing so via a computer connected to the internet. The most common live dealer games offered at online casinos are baccarat, blackjack, and roulette.
Examples
A typical selection of gambling games offered at an online casino might include:
Bonuses
Many online casinos offer sign-up bonuses to new players making their first deposit, and often on subsequent play as well. These bonuses are a form of marketing that may incur a cost (potentially justifiable in order to attract a new player who may return and deposit many more times), since the casino is essentially giving away money in return for a commitment from the player to wager a certain minimum amount before they are allowed to withdraw. Since all casino games have a house edge, the wagering requirements ensure that the player cannot simply walk away with the casino's money immediately after claiming the bonus. These wagering requirements are commonly set to be sufficiently high that the player has a negative expectation, exactly as if they had deposited and not claimed a bonus.
Casinos may choose to restrict certain games from fulfilling the wagering requirements, either to restrict players from playing low-edge games or to restrict 'risk-free' play (betting for instance both red and black on roulette), thereby completing the wagering requirement with a guaranteed profit after the bonus is taken into account.
Welcome
The Welcome bonus is a deposit match bonus on the first deposit ever made in the casino or casino group. Welcome bonuses sometimes come in packages and may be given to match the first two or three deposits (First Deposit Welcome Bonus, Second Deposit Welcome Bonus, etc.). They can also be tied to specific games, such as the Welcome Slots Bonus or the Welcome Table Games Bonus. The casino may also offer Welcome bonuses for high rollers who make an initial deposit above the standard amount limit.
Referral
There are two types of Referral bonuses: one for the Referee and one for the Referrer. The Referee gets a bonus when he or she registers an account at the casino and mentions the Referrer. The Referrer gets a bonus when the Referee completes all the requirements, such as making the deposit and wagering it a certain number of times.
Cashback or insurance
Cashback or Insurance bonuses are offered as a percentage of all losses in the player’s previous gaming activity. Typically, only deposits that were not matched with bonuses count towards this bonus. You can additionally find websites that offer casino cashback payments based on your losses encountered while playing with one or more online casinos. Those types of cashback deals are usually paid back to players by the casino portal that offers those special cashback offers.
No-deposit
The most popular form of bonus is one that can be claimed without the need to deposit any of the player's own money - known as a no deposit bonus. These bonuses are used as acquisition tools by casinos wishing to attract new players. No deposit bonuses don't always take the form of real cash, as exemplified below.
Non-cashable
Non-cashable bonuses may be called 'sticky' or 'phantom' bonuses. In both cases, the bonus forms a part of the player's balance, but cannot be cashed out. The difference between cash-able and phantom bonuses comes at cashout time. A phantom bonus is deducted from the player's balance at the moment he places his withdrawal request. For example: if you deposited $100, received $100, played, and finished the wagering at $150. If the bonus is sticky, the player will be able to withdraw just $50. If the bonus is cash-able, then the whole balance is available for withdrawal.
Comp points
Comps are commonly available at land-based casinos, but also exist online. Comp points can usually be exchanged for cash, prizes, or other comps. The amount of cash given per wager is usually very small and often varies with game selection. A casino might offer three comp points for each $10 wagered on slots and one comp point for each $10 wagered on blackjack. The casino might give $1 for each 100 comp points. This example is equivalent to returning 0.3% of wagers on slots and 0.1% of wagers on blackjack. In addition, online casinos may offer comps such as free tickets to online tournaments, free slots online, tickets to other special events, extra bonuses, souvenirs, and payback.
Hunting
Bonus hunting (also known as bonus bagging or bonus whoring) is a type of advantage gambling where turning a profit from casino, sportsbook and poker room bonus situations is mathematically possible. For example, the house edge in blackjack is roughly 0.5%. If a player is offered a $100 cashable bonus requiring $5000 in wagering on blackjack with a house edge of 0.5%, the expected loss is $25. Therefore, the player has an expected gain of $75 after claiming the $100 bonus.
Disputes
A large portion of online casino disputes relates to bonuses. Casinos may label players who win using bonuses as 'bonus abusers.' Both players and casinos may commit fraud. An example of player fraud is creating multiple accounts and using the accounts to claim a sign-up bonus several times. An example of casino fraud is changing terms of a bonus after a player has completed the wagering requirements, then requiring the player to meet the new bonus terms.[citation needed]
Fraudulent operator behaviour
Fraudulent behavior on the part of online casinos has been documented, almost exclusively by player advocacy websites and forums. The most commonly reported behavior is a refusal to pay withdrawals to legitimate winners. An online casino with multiple confirmed cases of fraudulent behavior is often called a rogue casino by the online casino player community.
Many casino gambling portals and player forums maintain blacklists of rogue casinos. While some carry more authority than others, all blacklists constitute individual webmaster and player opinions rather than an official list from any type of regulating body.
Often, casinos use buffer sites that offer free play of their casino games but in reality use different means of deceptive strategies to redirect or lure the visitors into signing up to their services via appealing bonus offers or exclusive reward programs. The majority of these deceptive 'free' sites lead to equally deceptive casinos.
Since almost all existing online casinos offer free play of their casino games, recognizing whether a casino is deceptive based on whether they offer free gameplay is no longer viable.
Legality
Online gambling legislation often has loopholes that result from the rapid development of the technology underpinning the development of the industry. Some countries, including Belgium, Canada, Finland, and Sweden have state gambling monopolies and do not grant licenses to foreign casino operators. According to their law, operators licensed on the territory of these countries can only be considered legal. At the same time, they can't prosecute foreign casino operators and only block their sites. Players in these countries can't be punished and can gamble at any site they can access.
Australia
The Australian Interactive Gambling Act 2001 (IGA)[1] criminalizes the supply of online casino games by an operator anywhere in the world to persons located in Australia. It only targets operators of online gambling sites, resulting in the curious situation that it is not illegal for a player in Australia to access and gamble at an online casino. No operator has even been charged with an offense under the IGA and many online casinos accept Australian customers.[2] In June 2016, the South Australian Government became the first state or territory in the world to introduce a 15% Place Of Consumption Tax (POCT) modeled on the 2014 UK POCT.[3]
Belgium
The Belgian Gaming Act[4] went into effect in January 2011 and allows online gambling, but only under very strict conditions and surveillance.[5]
Canada
The Canadian criminal code states that only provincial governments and charitable organizations licensed by provincial governments may operate a casino in Canada. It also prohibits residents from participating in any lottery scheme, the game of chance, or gambling activity not licensed or operated by a provincial government.[6] In 2010, the British Columbia Lottery Corporation launched Canada’s first legal online casino, PlayNow, which is available to residents of British Columbia. The province of Quebec also operates a legal online casino through Loto-Québec.
Despite this legislation, the Kahnawake First Nation in Quebec has taken the position that it is a sovereign nation, able to enact its own gambling legislation, and has licensed and hosted nearly 350 gambling websites, without ever being prosecuted.[7]
Germany
A German state contract about gambling (German: Glücksspielstaatsvertrag [de]) between all 16 German states was ratified in 2008 and has been adopted in 2012. It regulates restrictive handling of online-gambling, including a basic state monopoly on public gambling with limited exceptions for a few commercial providers. Online gambling, and other forms of public gambling, against these regulations is illegal in Germany. The state contract, its implementation in contrast to the more lenient EU legislation, and possible further changes have been controversially discussed in the public, politics, and courts.
India
Online gambling is illegal in the state of Maharashtra under the 'Bombay Wager Act'. The most recent law to address gambling online was the Federal Information Technology Rules where such illegal activities may be blocked by Internet providers within India. Another act is the Public Gaming Act of 1867. States tend to operate on their own authority.
Online gambling legal issues in India are complicated in nature as Gambling in India is regulated by different states laws and online gambling is a central subject. To ascertain the position of Indian government, the Supreme Court of India sought the opinion of central government[8] in this regard but the same was declined by the central government.[9] This has made playing of online cards games like rummy, poker, etc. legally risky.[10]
United Kingdom
In the United Kingdom, the Gambling Act 2005 governs all matters of online gambling, permitting online betting sites to have a Remote Gambling Licence in order to offer online betting to UK citizens. In 2014, the UK government put into law the Gambling Act of 2014 which in addition to the original 2005 law, required offshore online gambling operators catering to UK players to obtain a UK license. The new regulation required operators to pay a 15% Place of Consumption Tax (POCT), something that triggered an exodus of sorts of some operators from the UK Isles. However, this exodus did not last long in most cases as the benefits outweighed the stumbling blocks, due to the UK being a major market for online gambling.[citation needed]
In 2019 the United Kingdom Gambling Commission (UKGC) announced a series of new measures that apply to online and mobile casinos to reduce underage gambling with the aim of increasing fairness and transparency.[11] The new measures will require casinos to have users verify their identity and age in order to gamble.[12]
United States
In the United States, the legality of online gambling is debated and can vary from state to state. The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) limits the ability of banks and payment processors to transact with internet gambling sites that are unlawful under any federal or state law. However, it does not define the legality or otherwise of an internet-based gambling site. It was commonly assumed that the Federal Wire Act prohibited all forms of online gambling. However, in December 2011, the United States Department of Justice released a statement clarifying that the Wire Act applied only to sports betting sites and not to online casinos, poker, or lottery sites,[13][14] leaving the definition of legality up to individual states. Certain states such as Nevada, Delaware, and New Jersey have started the process of legalizing and regulating online gambling and it is expected that regulation will continue on a state by state basis.
See also
Notes
- ^Interactive Gambling Act 1998 - Australia
- ^Cowie, Tom. 'Last Bets: around the world in online casinos — first stop, Gibraltar'. Crikey.
- ^SA to become a most expensive place in the world to wage a bet, betting agency says
- ^Gaming Act
- ^Platteau, Koen (23 October 2012). 'Online gambling is taking off in Belgium'. Olswang LLP. Archived from the original on 7 November 2012.
- ^'The Criminal Code of Canada (s.206 and s.207)'. Retrieved 9 April 2014.
- ^Crowne, Emir; Roy, Sanjay (May 2010). 'Maintaining Provincial Monopolies: The Legality of Online Gambling Sites in Canada'. Canadian Gaming Lawyer Magazine. Vol. 3 no. 1. SSRN1611862.
- ^'Supreme Court Seeks Centre's Response On Online Rummy And Card Games In India - Ground Report'. groundreport.com. 19 September 2014.
- ^'Centre: Let SC decide if rummy, poker are gambling'. The Indian Express. 26 September 2014. Retrieved 9 September 2015.
- ^'Online Rummy And Online Poker Remains Legally Risky In India - Ground Report'. groundreport.com. 13 September 2014.
- ^Miller, George (2019-02-11). 'UKGC: New rules to make online gambling in Britain fairer and safer'.
- ^'New rules to make online gambling in Britain fairer and safer'. www.gamblingcommission.gov.uk. Retrieved 2019-03-07.
- ^Vardi, Nathan. 'Department Of Justice Flip-Flops On Internet Gambling'. Forbes.
- ^Dunstan, Roger (March 1997). 'II. History of Gambling in the United States II-1'. Gambling in California. California State Library. Archived from the original on 2017-01-18.
External links
- Online Casinos at Curlie
The Gambling Act 2005 was the first significant piece of legislation to regulate gambling since the legalisation of betting shops and off-track gambling in 1961. It was established to regulate all forms of gambling (except spread betting) under one roof and part of the 2005 Act was to create the Gambling Commission, an independent regulator part of the UK government department of culture, media and sport.
The main objectives of the legislation in 2005 was to create a landscape that promotes fair and safe gambling by protecting the underage and vulnerable, ensuring responsible advertising and practices and preventing the industry being used for criminal means. Most would agree that the establishment of the UKGC and licensing for operators has driven the industry to be more responsible and across the world the UK is regarded as one of the safest places to bet.
Since 2005 though the industry has changed a lot, particularly with the growth of online and remote gambling. In the past five or so years calls for tighter regulations and restrictions have grown louder resulting in new rules and limits in an attempt to make an even safer industry, such as the £2 stake limit on fixed odds betting terminals and new verification rules online, both brought in in 2019. The UKGC, however, has received a lot of criticism from charities, public forums and MP advisory groups that it is not doing enough to help the most vulnerable in society.
In response to this the commission has dramatically increased the number and size of the fines it issues and has released a steady stream of new rules designed to help problem gamblers in particular. New bodies have also been created, such as the Betting and Gaming Council, an industry group established to promote values within the industry with a single message.
Despite these changes pressure for a new gambling act continued to mount with many suggesting the UK Gambling Commission was no longer fit or funded sufficiently to regulate, what is now, an industry worth close to £15 billion with most of that revenue now generated online. When the UKGC came into being betting was still heavily weighted to the high street and perhaps they did not envisage quite how big and fast remote betting and gaming would grow.
External factors have also contributed to calls for a new gambling act, such as the general election in 2019, which had gambling high on the list after Brexit, forcing the debate about a new act into the political chambers. This resulted in a number of reviews and proposals by MP's and the Lords. The unexpected corona virus pandemic has also heightened the debate around problem gambling, advertising and general practices that has further propelled the need for a new Act.
Gambling Act 2020? 2021?
A new gambling act was expected in the autumn of 2020, however, delays largely caused by the disruption from corona virus means a new act is now more likely in early 2021. Then again given past experiences with such things no one would be surprised if it dragged on to 2022 with Brexit likely to dominate time in parliament at the end of 2020 into 2021.
This does not mean most of the laws around gambling will change overnight, rather it will set out a landscape for future regulation. For example, in the 2005 act created the UKGC but the body did not become active until 2007 as it took two years to for the commission to assume full powers from the Gaming Board for Great Britain.
Once we have more details about the new act we will discuss them here and explain exactly what the act entails, what has changed, what is new and how this will impact operators and customers. Below we look at some of the major points likely to be included in the new act.
What Will Be In The 2021 Gambling Act?
Of course no one can be certain what new rules and changes will be included in the new act but we can assume some things based on what the UKGC has been doing of late as well as proposals from parliamentary and industry groups:
VIP Schemes
VIP programs offered by bookmakers and casinos are likely to be curbed or eradicated completely. Several studies and reports have shown that problem gambling and fraud is far more likely with VIP players (naturally) and changes or restrictions are highly likely.
Loyalty Points
Although loyalty schemes and points have not been cited directly many are linked to VIP schemes and share many of the issues in terms of customer profile that VIP programs do. It is possible loyalty schemes will be curbed or at least they will have to be more transparent about the amount of betting that is required relative to the value of the rewards.
Self Exclusion Rules
Currently self-excluding from one site does not mean you will necessarily be excluded from all. You can sign up to an exclusion database that companies are supposed to check but there are still plenty of instances where problem gamblers have got around this.
Expect any new act to mandate that self-exuded player details be shared automatically with other operators and relevant bodies to treat harm. This is expected to help reduce the amount of addiction.
Responsible Gambling Tools
Operators are currently expected to offer several tools to help people gamble responsibly, such as deposit limits, time limits, activity warnings, loss limits, product exclusions, etc. Most of these are optional for a punter and we can expect that under a new act this will be reversed. Customers may have limits automatically imposed and will then need to opt-out of these (which in itself will flag that customer for closer monitoring).
New tools may also be added to the list, such as shared data between operators to allow customers to see how much they are gambling across all brands not just the one site.
Deposit Protection For Customer Funds
Deposit protection is included as part of the 2005 gambling act, however, it does not currently force companies to protect funds in case they go bust. At present there are three levels, no protection (funds held in separate accounts but part of the business), medium (insurance or similar to cover customer funds) and high (customer money held in an account that is a separate legal entity to the business).
The clear majority of UK licensed betting companies currently fall under the 'no protection' level and this means if they go bust there is no guarantee users will get their money back. This has happened several times in the past few years as operators have gone under.
It is likely that a new act will insist that at least a medium level of protection is held to operate in the UK. This will not come in immediately but will probably be phased in over the course of a few years.
Ownership Rules and Company Structures
Currently the brand owner and license holder do not have to be the same people. This is common for white labels, where the operator holds the license and the brand owner holds the rights.
Ultimately it is the license holder that is responsible for customers safety and deposits, however, it is the brand owner that is often responsible for marketing, acquisition and retention. This creates an obvious mismatch in responsibility and therefore any new act may include restrictions on how companies are structured in this regard.
Deliberately convoluted ownership rules will also probably be looked to ensure customers know who it is ultimately that they are betting with.
Online Stake Limits
Limits are already in place for games on physical fixed odds betting terminals and it is expected that similar rules will now be rolled out online. This also includes a potential £2 limit for online slot and table games (per hand/spin) with overall limits also proposed (£100 in one day, for example).
Of all the potential new rules this is the one the industry will rebuff the hardest given it will have a severe impact on revenue. Many expect a stake limit to be enforced but at the same time it is a fair bet it will be raised above £2.
Online Game Timings
Time between spins/hands on online games is another area that has come under pressure in recent years. Even with stake limits it is possible to spin the reels in some games every few seconds in turbo mode, potentially meaning customers can stake £1000's in an hour even at relatively low stakes for each spin/hand.
An enforced break between spins may be part of a new act, perhaps 30 seconds, for example. This will mitigate the amount of loses someone can make within a given time while also giving additional time for the customer to reflect on their betting.
TV and Sport Advertising and Sponsorship
It is the cash rich industries that provide the most sponsorship for sport, football in particular. In the past sport had been heavily sponsored by tobacco and alcohol before these were banned or curbed in the late 1990's and 2000's and it is the gambling industry that has filled most of that niche.
Sport and football is watched actively by younger audiences and it is felt the number of adverts and amount of sponsorship is at dangerous levels. This has been compounded by the amount of live sport that is now on TV and the number of adverts this now attracts.
One aspect a new act may look at, in cooperation with the ASA, is reducing the number and type of ads on TV. A total ban is unlikely but we could see rules that restrict when adverts can be shown, perhaps after 9pm. There will also be possible rules around advertising on football shirts specifically.
Is It Illegal To Play Online Casino
Gambling Levy
The gambling levy currently is voluntary and only applies to those operators that sign up to it, which at present is mostly the big names only. Any new act is almost certain to introduce a mandatory levy, the money from which will be used for services that prevent harm from gambling.
Gambling Fines
The industry does not want to increase the number of fines as that in itself is a sign that the regulation is not working. What we can expect though is the level of fines will rise to ensure operators follow the rules.
Money from fines will also be looked at, presently this is largely given to a handful of charities as well as paying for the UKCG itself. Fine money is likely to now be handled by an independent body who will allocate it accordingly.
Reverse Withdrawals and Pending Periods
In response to a rise in online gaming during the corona virus outbreak the UKGC initiated a raft of emergency measures to help reduce problem gambling, one of which was to ban reverse withdrawals. It is almost guaranteed this will be part of the act in 2021.
Reverse withdrawals allow plays to cancel a withdrawal they have made while it is in a pending period (the time it takes for the site to process the withdrawal). Pending periods can last days, sometimes up to one week, and of course encourage those with addictive gambling to continue playing.
Within that the pending periods themselves may also be looked at given many brands have an unreasonable amount of time to process a withdrawal, which really should take less than 2 days.
Payment Methods and Credit
The use of credit cards for gambling was banned in April 2020 but many want further restrictions. For example, you can still use 'credit' through pay by phone bill methods or to purchase cash vouchers, therefore, rules around this will probably be tightened further.
eWallets such as Skrill and Neteller, which have historically been abused to for fraud purposes by creating duplicate accounts, may also be looked at as part of a new act. These could be banned or at the least providers will be asked to perform additional verification when these methods are used.
Cash can also be used for some transactions, either by funding directly through a betting shop or through cash voucher systems, such as PaySafeCard. This again may be looked at due to the links between cash and fraud.
Withdrawal Limits
Some sites have very low withdrawal limits (e.g. £10,000 / month) and this can be very unfair for those that win big, such as a jackpot slot win. It can take years to get your money out of some sites, during which time there is always a risk of them going out of business.
It is possible a new act may insist on minimum withdrawal levels to allow users to be able to retrieve large winnings more easily.
Source of Funds Checks
If a customer makes a large deposit or a deposit that is out of character compared to their usual activity then operators are required to check the source of funds to ensure they are legal and the customer can afford it (e.g. not money from a personal loan as this is credit).
One of the most severe failings over the last ten years has been in this area and companies have been repeatedly fined for not checking where large deposits (or a series of small deposits) comes from. This is an area that a new act is certain to cover with more detailed guidelines and lower thresholds.
Active Monitoring
Like it or not every single click you make on a betting website is tracked and recorded. Operators are obliged to monitor your activity and to intervene if they think you are displaying signs of problem gambling although in reality asking the brands to do this themselves always raises a conflict. The more they intervene the less money they will make.
Most of the information that is gathered about your betting activity is not actually used to protect you, rather in many cases it is used for the opposite to profile you so they can send you appropriate offers, etc. Any new act is likely to insist on closer monitoring, possibly through an independent body.
New Customer Thresholds
Part of the emergency measures that were brought in alongside limits on reverse withdrawals during the virus outbreak in 2020 was to limit the amount a new customer could deposit and bet. This was done on the basis that operators have no historical data on new customers and therefore cannot know their affordability.
This is something, again, that is likely to go straight into a new act. New customers may be limited to say £100 initial deposit until further checks have been completed. This will also change the welcome bonuses that are offered, such as the headline grabbing £500 or £1000 deposit bonuses you now see for casinos.
Limiting Accounts
Operators are private companies and their ultimate objective is to make profit and one way they do this is to limit or close accounts for players that win. This practice has been going on since the advent of online gambling, indeed prior to that bookie shops would ban people who won too much.
Some account limiting is genuine, often due to bonus abuse or hedging, but in reality it is used by companies to improve profits. There has been little said on whether this will be addressed in a new act but if the UKGC are listening to punters this will be an area they may look into. This may include a minimum bet guarantee (e.g. any customer must be able to stake up to £100).
Imagery In Games
The use of images that appeal to children has come under intense scrutiny over the last few years. There are already rules in place stating that companies and advertisers should not display 'childish' images where they can be seen by children but in reality these rules are vague and not very well defined.
The nature of slot games is they appeal to peoples passions and fantasies, many of which naturally would appeal to children. You could say in many ways slots are designed to appeal to the inner child in people. Therefore the types of imagery that can be used will be reviewed in detail.
This may actually impact how games are made. The software companies themselves that make games also need to be licensed and this means any new act may stipulate more stringent rules around the game design.
Loot Boxes and Gambling Products In Games
In game spending for games not restricted to adults will also come under the spotlight in any new legislation. In many games users can buy 'loot boxes' without knowing what is inside them, this in effect is gambling according to several parliamentary reviews on the subject.
Games will therefore need to either stop undisclosed purchases or will require age verification to do so along with appropriate gambling warnings. This is also something that will likely be mirrored by the EU as a whole.
Spread Betting
Spread betting is classed as a form of trading and so was never part of the remit of the 2005 gambling act, instead it is regulated by the Financial Conduct Agency. Spread betting is seen as one of the most dangerous forms of gambling because it does not use fixed odds, instead you take a 'positions' on an outcome (e.g. number of cards in a football match) and the more accurate your 'position' the more you can win but the further away that guess is the more you can lose. A result of this is you can lose far more than you staked meaning you can end up owing a company a lot of money.
Nothing has been said as to whether this form of gambling will now be assessed as part of the 2021 act or not but given the potential for harm from this form of betting it is probable that it will be included in some form in the new legislation.
Free Bets and Bonuses
Incentives are one of the main methods used by companies to encourage people to join and to continue betting. These incentives, however, can be dangerous for those addicted to gambling and so we can expect curbs on the size and types of promotions betting companies can run for new and existing companies.
Free bets and bonuses have already been curbed to a degree as the government now taxes these in the same way they do real money bets, which is why you may have noticed the size of welcome offers has decreased in recent years. Still, many believe more can be done and so tighter rules around this may come into force, including on the terminology used, for example, the term 'free bets' itself may no longer be allowed.
Exiting The UK
The UK has seen a lot of brands pull out of the UK recently driven by high competition, Brexit, higher tax and more regulation and this will likely be exasperated as more restrictions are announced in the new act.
Brands will likely be told they have to now provide a minimum amount of notice to leave the UK and part of this will be guaranteeing ante-post bets for a certain period.
Companies That Become Insolvent (Go Bust)
Far too many brand owners have gone bust in the last decade putting customer funds and bets at risk. We've already mentioned that the deposit protection scheme will probably be upgraded but alongside this companies are likely to be told to build in insurance or larger reserves to maintain their license.
The ownership structure of companies will also come under the spotlight to ensure those that own the brand can afford to operate.
Lotteries
One of the major talking points since the 2005 act came is is why lotteries have a minimum age of 16 yet gambling as a whole has a standard minimum age of 18. The age limit of 16 was brought in for the National Lottery partly to drive sales and tax revenue when it was first launched but this is now incompatible with the idea of responsible gambling.
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In addition to an age limit rise to 18 the gambling act is also going to look at so called 'low risk' council and charity lotteries that have been cited as a gateway to gambling.
Live Streaming
For the FA-Cup in 2020 many were outraged that one of the only ways people could watch a lot of sport was through bookmaker streaming services. Campaigners believe this encourages gambling and promotes adults to allow minors to watch bookmaker streams.
In response to this the companies in question made the games they stream available to other platforms but that will not make the discussion go away. Streaming is unlikely to be banned but there may be rules that mean that streamed content must be available on other non-gambling platforms and operators may be told they have to offer streams for free (currently to access streams most brands require you to have money in your account, deposit or bet).
Black Market Gambling
You cannot stop illegal betting but a lot of people think more can be done. As things stand now it is illegal for companies to offer gambling services in the UK if they do not hold a UKGC license, however, the UKGC does not actively stop illegal sites from taking UK customers, rather the onus is on the customer to ensure they are betting with a licensed brand.
The government can't close down all illegal sites as many are based in places, such as Curacao, where they have no powers. They could certainly do more though to at least inform customers about the risks as well as trying to take more action to close down the worst offenders.
More regulation as part of a new act will also naturally increase any black market and so it would be foolish if this were not addressed in a new act.
Affiliates and Advertising Partners
Operators are licensed although they can work with affiliates and advertising partners who are not licensed. Currently it is on the operator to enforce UK gambling laws with their partners but this has resulted in several failings, driven in part by the fact the individual brands do not often have the resources to monitor all of their partners.
One suggestion is for affiliates themselves to be licensed, which means they will be answerable under the law for the content they provide and the brands they advertise. The trick any new act will have to balance is appropriately regulating advertisers while preventing corporate domination of the sector. Independent advertisers are critical to maintaining competition.
Betting On Underage People
Sweden has banned betting on sports matches that include under 18's, such as commonly seen in tennis. This in principle seems like a good idea but it will be difficult to see how it could work in practice. Take a football match for example that starts with all 22 players over the age of 18 with a substitute under 18 coming on later in the game. It is hard to see how this could be enforced.
It is unlikely to be included as part of a new act.
Will It Be The End For The UKGC?
There are lot of people that think the UKCG and the 2005 act is toothless and so we could see a new regulatory body formed as part of a new act, in the same way the UKGC was established in 2005.
Any new body will however do pretty much what the UKCG does now but may be given a new name to reset trust in the organisation. What we can guarantee is the remit of the UKGC or new body will be larger with greater powers to fine or suspend companies.
There is also likely to be a lot more funding for the regulator than there is now. Currently the UKGC operates using the few million it generates from license fees and fines, however, this is seen as inadequate for an industry worth £15 billion and growing.
Other Considerations For A New Act
One thing that any new act has to be careful to balance is competition in the industry to prevent a monopoly. Several mergers of the biggest betting brands over the past decade has now lead to colossal betting groups worth billions (such as Entain, owners of Gala, Ladbrokes & Coral and Flutter/Stars, owners of Paddy Power, Sky Betting and Betfair). These companies are already creating a monopoly within the industry driving down competition and value for the customer.
The nature of the regulations discussed on this page requires brands to invest a lot of resources to meet them, unfortunately those brands with bigger budgets will of course be able to meet regulations more easily, which could kill off a lot of smaller companies.
A new act also has to balance freedom of choice for the customer with regulations designed to protect them. If the market becomes too regulated and as a result users notice a considerable drop in value there will be more incentive to gamble illegally.
The EU is also looking into how they handle gambling laws across the block and the UK would be wise to consult with them first to align any new act with EU policy. Most brands are based in the EU these days and so making rules consistent will aid their ability to meet them.