Changes to UK Gambling Regulations Coming into Effect This April

Baroness Twycross, the Gambling Minister, has officially introduced new legal measures regarding gambling legislation, statutory levies for operators, and stake limits. The new regulatory changes will be implemented on 6th April this year.

The new legislation will introduce a statutory levy, the first of which will be due by 1st October. Operators will be required to pay a percentage-based fee on their gross gambling yield (GGY). This rate will not be fixed but will instead vary in the range of 0.1-1.1%, depending on the risks, types of games, and the operational costs of the business.

This, as well as the incoming caps on stake limits for online slots, will only affect gambling operators under the jurisdiction of the United Kingdom. Internationally licensed casinos like Golden Panda, which are favoured by domestic audiences for their diverse bonuses and games with generous limits, will remain unaffected by these changes. Online slots on UK-based casinos will introduce a £5 limit per spin in the first phase on 9th April, with the second phase including a £2 stake limit for players aged 18 to 24.

Statutory Levy Aiming To Reduce Gambling Harm

On 12th February, Baroness Fiona Twycross revealed the plan for these legal changes. The main aim of this reform, as she stated, was to secure a safe and sustainable gambling environment for both players and operators.

While the voluntary contributions of the Betting and Gaming Council (BGC) members were not insignificant, the idea is to aim higher. Grainne Hurst, the CEO of BGC, pointed out that over the last four years, members of the council have contributed voluntary funds of over £170 million.

This money was redirected towards work on gambling issues. However, with the statutory levy becoming part of the equation, this budget is expected to reach a planned £100 million milestone on a yearly basis.

The funds provided by the levy will be crucial support for projects and services that are working on harm reduction in gambling. The levy itself will be proportionate. The government is introducing a model that should mitigate fees on operators, providing a fair distribution of everyone's share in the development of harm prevention.

The previously used voluntary model has already provided significant sums of money to projects, but the levy aims to formalise these contributions and set a foundation of standardised and sustainable support. Allocation and transparency of the collected funds will be overseen by an independent monitoring board, which will also provide reports on the efficiency of the levies.

The minister has additionally addressed the problem of gambling advertisements. While the government is not looking to stifle the development of gambling businesses, there are concerns about current marketing practices. In this light, Twycross urged operators to work harder on innovative and responsible advertising in order to avoid profiting from vulnerabilities.

Government Pushes For Suppression Of Illegal Gambling

Another huge concern for the government is the continued presence of illegal gambling operators and markets. The UK Gambling Commission (UKGC) is worried about unlicensed casinos and the damage they can do to both players and the industry. In that regard, new measures have been added to UK criminal law to aid in the fight against illegal casinos.

The Criminal Justice Bill amendment, once approved, should increase law enforcement's ability to shut down IP addresses that are used to operate illegal gambling platforms.

Concerns about the impact on the majority of players are valid, but the Department for Culture, Media and Sport (DCMS) maintains a firm view that the changes will protect those most at risk from illegal and deceptive practices while at the same time providing other players with a fair and safe environment. A generous grace period is provided for the industry to adjust and realign with the new measures. Players should similarly see the benefits of these changes and the increasing support from the government.

At the moment, new measures are being considered in order to readjust regulations for traditional land-based casinos. If they are put into motion, these venues might be able to introduce a wider variety of games and sports betting, which would provide this branch of the industry with a much-needed boost.