For weeks, the online gambling industry has been waiting the release of a white paper said to target iGaming. The document is supposed to redefine online gambling in the UK. Expectations are that the white paper will introduce new restrictions that will change more than a few things in the sector. For over 20 months, then Gambling Minister, Chris Philp, heralded the efforts to reform iGaming in the UK. Expectedly, the investigation into the sector would lead to changes in the Gambling Act of 2005. The government was expected to release its White Paper of Recommendations in July. However, recent changes in the government halted those plans, leaving operators and other stakeholders in speculation about what comes next.
On July 7, 2022, UK Prime Minister Boris Johnson announced his resignation as the Conservative Party leader. This move came after an exodus of cabinet ministers, including Philp, the man responsible for the anticipated white paper. Johnson will step down as the country’s prime minister after the Conservative political party names his replacement. During the 2019 general election, Johnson pledged to impose significant restrictions on the online gambling sector to turn the UK into ‘the safest place to be online.’ This white paper was geared toward fulfilling that promise. With Johnson’s government out of play, the future of the document review is up in the air.
The Threat of Technical Controls
Even though the white paper is not out yet, the industry has a few ideas of what it might entail. One of the biggest concerns among gambling operators is that the document could recommend the introduction of technical controls that would affect the sector considerably. When Philp reported to the Digital, Culture, Media and Sport (DCMS) Committee on the contents of the white paper, he said that online slots and online casinos were major targets. According to the former minister, internet gaming contributed to high problem gambling rates, requiring the government to take action. So, there were discussions to set extreme staking limits and other financial controls.
Reports say online casinos will have maximum bets of £2 – 5. The government also aims to ban free bets. Therefore, gambling sites won’t be allowed to provide offers such as free-deposit bonuses. VIP packages for players who suffer big losses will also be cut. ‘Non-intrusive’ affordability checks are other measures the government recommends reducing the risk of problem gambling. Operators will be required to remove game features that enhance the level of risk players face. Some internet casinos already meet this requirement as a pledge to the BGC (Betting and Game Control) code of conduct on game design. Regulated sites have other measures to lower the risk posed to vulnerable players. Luckydays on Casinos.info should give you an idea of how a licensed operator achieves that.
The claim that iGaming has a higher risk of creating problem gamblers has caused heated debate for a long time. Operators complained that the gambling ministry was working with outdated studies and appeared to favour offline gambling, especially the lottery. The white paper doesn’t impose any restrictions on this sector. In his presentation to the DCMS, Philp said the National Lottery brought in approximately £4 billion in gross yield.
Other Possible Changes
Another significant change the white paper is looking at is the sponsorship of English football clubs. The review seeks to ban shirt sponsorships to curb the exposure of consumers to gambling content. Reports indicate that the UK Gambling Commission will get more authority and additional funding sourced from fee increases in the sector.
The UK gambling white paper is not only important to the country but also the global iGaming industry. The UK is the premier jurisdiction for online gambling regulation, with leading operators holding UKGC licences. Therefore, how the nation regulates the sector will impact other markets.
The Delay of the White Paper
Even though the White Paper of Recommendations didn’t have a definite date, it was supposed to be out in the ‘next few weeks.’ In a June debate in Westminster Hall, the DCMS parliamentary secretary, Nigel Huddleston, refused to give a date for the document release. He explained that the review was critical and needed to be done right. According to Huddleston, the white paper is a priority for the DCMS, but it will take a while to finalise. He also said that the reformed rules had to factor in the digital age and the future. Former Conservative leader Iain Duncan Smith pressured the secretary into being more precise about the timeline, but the latter didn’t cave.
With Philp’s resignation and the pending appointment of a new UK Prime Minister, the white paper release will delay again. The industry speculates it might take months, even years, to get back on track. Some reports say Philp is ready to return to his former position if asked. Allegedly, Philp said he is open to helping in any capacity bring the Online Safety Bill to parliament. If he could assist practically, he said he would, regardless of the lender and the circumstances because it was a matter of public service. Some points of conflict like RET finding and football sponsorship were holding up the review, which was expected to be released in the summer. Now, the sector has to wait until the election of a new Tory leader and UK PM on September 5, and the formation of the cabinet. Even after a new minister takes over, there’s no guarantee the review picks up where it left off.
The highly anticipated UK gambling white paper is expected to change how the industry runs. For several weeks, iGaming operators and other stakeholders have been waiting for the documents, but current political events are set to delay the release even further. All the sectors can do is wait to see the direction the new Tory leadership takes regarding online gambling.