UK Gambling Commission Continues to Strengthen Their Regulations

Stricter regulation of the UK gambling industry continues to take place. The UK Gambling Commission (UKGC) have recently announced new measures regarding the bonuses online casinos can offer their customers. Higher levels of fines imposed on UKGC licence-holders is also on its way.

This year has already seen stricter regulation take place. A new mandatory levy on UK gambling companies has been introduced. There has also been new maximum stake limits imposed on the many slot games seen at online gambling operators reviewed on britishgambler.co.uk.

More regulation is on its way and that’s worrying news for the UK gambling industry. The effects of the new maximum stakes on slot games is yet to be revealed in company accounts. There are also calls to limit the way in which gambling is advertised.

One major feature of UK online gambling sites is the number of offers and bonuses that are offered and they are the subject of most advertisements. Bonuses are a key weapon with which online casinos can attract new customers and then ensure that they continue playing on the site.

The offering of free bets, matched deposits and free spins for slot games has been criticised by many opponents of gambling. They see them as a way of enticing people to play, even if they are having problems with how they gamble. Many players appreciate the bonuses, particularly those indulging in matched betting.

One concern is the fairness of the offers that are in place. It may sound attractive to receive £30 in free bets or £50 worth of free spins but not so great once the terms and conditions have been read.

Those terms and conditions include details of wagering requirements and restrictions on how free bets and spins can be used. It has been commonplace that for example, winnings from free spins must be wagered a specified number of times before a withdrawal of funds can be made from your account. This can see players losing any winnings from their bonus.

Now action against these bonuses is being taken by the UK Gambling Commission. They are aimed at increasing levels of transparency and fairness. Producing complex terms and conditions is also frowned upon as these can confuse players and lead to bonuses being lost.

One area of concern has been multi-product promotions. The UKGC see them as being “potentially harmful” to customers and will be banned when the new rules come into force in December of this year.

Wagering requirements will not be allowed to be any larger than 10x. The hope of the UKGC is that this will reduce the chances of customers suffering gambling-harm. 

The measures are long overdue in the eyes of many. 2019 saw a pledge by the then Tory government to reform the 2005 Gambling Act. Not until 2023 was a White Paper on gambling reform published. 

That did touch on the subject of the bonuses that are offered by the gambling industry. A change of government and consultation on the White Paper has subsequently taken place. The consultation found that “most respondents” wanted changes made regarding bonuses.

The executive director for research and policy at the UKGC is Tim Miller. He believes the planned measures will “better protect consumers from gambling harm and give consumers much better clarity on, and certainty of, offers before they decide to sign up.”

Recently the UKGC imposed a fine of £170,000 on Taichi Tech Limited. They run the online casino Fafabet but after an investigation, the UKGC determined that among their terms and conditions for bonuses was one they considered to be “unfair.”

A “discretionary” term stated that the operator had the right to either close an account or declare a customer’s winnings as forfeited at their own discretion. The use of the term “without clear justification” is according to the UKGC a breach of the fair and open licensing conditions, causes a lack of transparency and could see unfair outcomes for customers occur.

Another common reason that the UKGC issues fines is failings in social responsibility and anti-money laundering standards. Taichi Tech Limited were found to have failings in both of these areas.

A UKGC investigation found that limited customer information was being held by the company. Players were being allowed to make large amounts of bets over short periods of time. There was also insufficient action being taken to help customers who may be suffering gambling harm.

The company has admitted mistakes were made and changes have been made. Even so, they will now be subjected to a third party audit to see if better procedures are now in place.

Larger fines could be imposed from October of this year. The UKGC recently announced that fines could reach 15% or higher of the company’s  gross gambling yield. This adds to the concerns of the UK gambling industry that stricter regulation may see their profits begin to fall.