Tag: gambling commission

New £2 maximum stake for under 25s playing online slots

Stake limits for online slot games will be introduced for the first time in September, including lower limits for young adults

  • Stake limits for online slot games introduced for the first time in September in landmark moment for regulation of online gambling 
  • Maximum £2 stake for 18 to 24-year-olds for online slot games to be introduced
  • £5 limit for adults aged 25 and over brings stakes in-line with casinos

Easily accessible online slot games are one of the most addictive forms of gambling, and can be associated with large losses, long sessions, and binge play. Unlike land-based gaming machines, such as in casinos, they have no statutory stake limits. 

To counter the increased risk of significant harm and life-changing losses from online slot games, the Government will introduce a £5 stake limit for adults aged 25 and over.

Responding to evidence, a lower level stake limit for young adults aged 18-24 years old will be set at £2 per spin. This age group has the highest average problem gambling score of any group, as well as lower disposable income, ongoing neurological development impacting risk perception and common life stage factors like managing money for the first time. The evidence also points to a stronger link between gambling related harm and suicide among young adults.

The decision follows a 10-week consultation period in which the majority of respondents agreed with the gambling white paper proposal to introduce statutory limits for online slot games to help reduce the risk of gambling harm.

Consultation responses included views from industry, academics, treatment providers and individuals.

Gambling Minister Stuart Andrew said: “Although millions of people gamble safely every single day, the evidence shows that there is a significantly higher problem gambling rate for online slot games. 

“We also know that young adults can be more vulnerable when it comes to gambling related harms, which is why we committed to addressing both of these issues in our white paper.

“The growing popularity of online gambling is clear to see, so this announcement will level the playing field with the land-based sector and is the next step in a host of measures being introduced this year that will protect people from gambling harms.”

Evidence from the Office for Health Improvement and Disparities shows that young adults can be particularly vulnerable to gambling related harm, with under 25s having the highest average problem gambling score of any age group.

NHS survey figures also show that there is a problem gambling rate of 8.7 per cent for online gambling on slots, casino or bingo games, one of the highest rates across gambling activities.

CEO of GambleAware Zoë Osmond said: “We welcome the Government’s announcement to introduce lower online stake limits for under 25s as an important mechanism to protect young people. Our research shows a concerning trend with this age group experiencing an increase in harm arising from gambling and online slots are very high-risk products.

“As we continue our work to tackle this growing public health issue, we will collaborate with the Government and others across the gambling harms sector to ensure there are no missed opportunities when it comes to the introduction of robust preventative measures, including new regulations such as these.”

Commenting on the announcement from the Government of new maximum online slot stakes, Dame Caroline Dinenage MP, Chair of the CMS Committee, said: “I’m pleased that the Government has listened to the Committee in its response to its consultation on stake limits for online slots and that the new limits will leave 99% of over-25 gamblers unaffected.

“Equalising online maximum stakes with those of most land-based gambling, while including protections for younger people, is a sensible and proportionate way to balance the risk of gambling harms with the freedoms and responsibilities that players have the right to expect.”

In announcing the new limits, the Government has agreed with the Committee’s recommendations from its report on gambling regulation published in December. The report said that stake limits for online slots should match those for electronic gaming machines in land-based venues and not exceed £5, with the limit £2 for young adults.

The limits will come into force in September this year, following secondary legislation. There will be a six week transition period for operators to become compliant with the general £5 stake limit rules, followed by a further six weeks for the development of any necessary technical solutions to ensure operators are fully compliant with the lower stake limit of £2 for young adults aged 18-24. 

Although most people gamble without issue, the restrictions introduced today are just some of the proposals set out in the Government’s white paper to modernise the gambling sector and make it fit for the digital age. 

This includes the introduction of a statutory levy for research, prevention and treatment, as well as financial risk checks designed to prevent catastrophic, life-changing losses.

The Gambling Commission and the Government continue to listen to concerns from campaigners, the wider public, and both the gambling and horse racing industries as part of the consultation process on these checks.

The Gambling Commission continues to refine its approach on the design to achieve the right balance between protections and freedoms. 

As well as introducing measures to protect people from gambling related harm, the white paper package contains proposals that will support the land-based gambling industry to thrive. The industry supports thousands of jobs across the country and the Government has been clear it does not want to harm its success.  

Responses to the wider white paper measures will be published soon.

‘Torpid and toothless’: Gambling Commission slammed in new report

The Department for Digital, Culture, Media & Sport (DCMS) and the Gambling Commission it oversees have an “unacceptably weak understanding” of the impact of gambling harms and lack measurable targets for reducing them, according to a Westminster committee.

In a report published yesterday, the House of Commons Public Accounts Committee says the Gambling Commission is not proactively influencing gambling operators to improve protections, and consistently lags behind moves in the gambling industry. Where gambling operators fail to act responsibly, consumers do not have the same rights to redress as in other sectors.

There are an estimated 395,000 problem gamblers in the UK, with a further 1.8 million people ‘at risk’. The effects can be devastating, life-changing for people and whole families, including financial and home loss, relationship breakdowns, criminality and suicide.

The Gambling Commission is a non-departmental public body funded by licence fees from gambling operators. In 2018-19 it took £19 million in these licence fees: less than 0.2% of the £11.3 billion gambling yield that year. In contrast to the Commission’s £19m fees a year, the gambling industry has agreed to spend £60m to treat problem gamblers.

‘Prevention is better than cure’

The government has approached other public health issues on the basis that prevention is better than cure. However, the Department was unwilling to accept the premise that increasing the Commission’s budget to prevent harm would be preferable to spending on treating problem gamblers. 

The Commission increased the value of the financial penalties it enforced from £1.4 million in 2014-15 to £19.6 million in 2018-19, but it doesn’t know whether this has strengthened the deterrent to breaking rules for operators.

The Gambling Commission also has little understanding of the impact of its other regulatory action, including its ban on the use of credit cards for online gambling.

The Committee finds the pace of change to ensure effective regulation has been slow and the penalties on companies which don’t effectively tackle problem gambling are weak. 

Failure to protect consumers

It says the Department and Commission together have “failed to adequately protect consumers” at a time of considerable change in the sector, as gambling increasingly moves online and new games become popular.

The collection of evidence has been patchy and behind the curve as the nature of gambling has changed, and the Commission has failed to develop responses even where it has identified potential problems, such as during the Covid-19 lockdown.

The temporary ban on gambling ads during lockdown has now been lifted – in its response to the report the Commission should provide an update on gambling patterns and industry behaviour during Covid-19, and any regulatory action it has taken to tackle the industry.

The Committee calls for a new, published league table of gambling operators’ behaviour towards their customers, naming and shaming poor performers. It says the Department must urgently begin its long-planned review of the Gambling Act, setting out a timetable within three months of this report.

The Committee concludes:

  •  The Commission should develop a plan for how it will be more proactive in influencing the industry to treat consumers better, including using reputational tools such as league tables indicating how well each operator treats its customers
  • The Commission should urgently investigate the impact of fixed odds betting that falls under “lottery” legislation and is accessible by 16 and 17-year-olds
  • The Commission and the Department should urgently look at online fixed odds betting and report back to the Committee with how they intend to increase effectiveness of online harm reduction within three months. 
  • The Commission needs to “radically improve” the data and insight it collects to know what is going wrong for consumers and develop better information on its own performance: Within three months the Department and Commission should set out to the Committee what actions they will take to ensure they have the research and evidence base needed to better understand gambling problems, and to design an effective regulatory response.
  • The Department and Commission should work together to strengthen consumer rights assess the impact on consumers of gaps in redress arrangements and examine options for increasing statutory protections with an individual right of redress for breaches of the Social Responsibility Code of Practice.

Chair’s comments

Meg Hillier MP, Chair of the Committee, said: “What has emerged in evidence is a picture of a torpid, toothless regulator that doesn’t seem terribly interested in either the harms it exists to reduce or the means it might use to achieve that.

“The Commission needs a radical overhaul: it must be quicker at responding to problems, update company licence conditions to protect vulnerable consumers and beef up those consumers’ rights to redress when it fails.

“The issue of gambling harm is not high up enough the Government’s agenda. The review of the Gambling Act is long overdue and an opportunity to see a step change in how problem gambling is treated. The Department must not keep dragging its feet, we need to see urgent moves on the badly needed overhaul of the system.

“Regulatory failure this comprehensive needs a quick pincer movement to expose the miscreants and strengthen those they harm.”

Gambling Commission survey of participation and problem gambling released

New research highlighting gambling participation and problem gambling rates in Scotland has been published. More than 4,000 people were interviewed for the Gambling Commission’s Participation and rates of Problem Gambling in Scotland Survey 2016. Continue reading Gambling Commission survey of participation and problem gambling released