Operators need to be proactive when it comes to new compliance frameworks, according to Andrew Bonsall, the COO at AperiData, who shared his thoughts on player protection within the UK with CasinoBeats.
Problem gambling continues to be a significant issue in the UK, with a financial cost of £412.9m and a societal cost of between £635m and £1.3bn, according to GOV.UK. As a result, the UK Gambling Commission (UKGC) is tightening regulations, with new rules set to take effect in 2025. These updates aim to strengthen consumer protection by requiring online gambling operators to implement better financial vulnerability checks and adopt frictionless financial risk assessments. The goal is to foster safer gambling practices, promoting transparency and fairness.
In this context, gambling operators must take proactive steps to reduce gambling-related harm. Although the new regulations will present challenges, they also offer opportunities for operators to implement more responsible practices. Understanding the broader issue of gambling addiction and complying with these new regulations will help operators maintain ethical standards, ensure compliance, and preserve customer trust.
An overview of the new rules
The UKGC’s updated regulations are part of a phased review of the Gambling Act 2005, focusing on enhancing consumer safety in the online gambling space. As part of the key policy changes, Financial Vulnerability Assessments will mean that remote operators must conduct financial vulnerability checks when a customer spends £500 on gambling within 30 days. Publicly available data will be used to assess whether a customer is gambling beyond their means, allowing operators to identify at-risk individuals before significant harm occurs.
Additionally, the UKGC is testing seamless financial risk assessments for the largest operators. These evaluations assess a customer’s financial health without disrupting their gambling activity. The goal is to protect consumers while minimising the negative impact on responsible gamblers.
There will also be new rules on game design and advertising. From January 2025, the UKGC will introduce regulations to reduce the addictiveness of remote game design. New marketing rules, effective in May 2025, will give customers more control over the advertising they receive from gambling companies.
These regulations are a clear indication that the UKGC is committed to making gambling safer by addressing financial vulnerability, addictive game design, and excessive marketing. The onus is now on the industry to respond effectively to reduce risks for vulnerable players.
Where gambling becomes a problem
According to the UKGC, there are 246,000 adults classified as problem gamblers. Problem gambling can lead to financial distress, mental health problems, and strained relationships.
Financial vulnerability can exacerbate gambling addiction. For those already in financial trouble, gambling may seem like a quick fix but often results in deeper debt. The UKGC’s focus on financial vulnerability directly addresses this issue by requiring operators to intervene early before a customer’s gambling habits become unmanageable.
Game design is another major contributor to gambling addiction. Fast-paced games with frequent wins or near-miss mechanisms can make it difficult for players to stop. The new rules aim to address these addictive features and improve consumer safety.
Take a proactive approach to combating problem gambling
To meet the new regulatory requirements, gambling companies must adopt a more proactive approach to preventing gambling-related harm. Compliance alone is not enough; operators must go beyond the minimum legal standards to genuinely protect their customers.
- Enhance Financial Monitoring: Operators should invest in tools that provide real-time assessments of a customer’s financial health. These tools should allow operators to monitor gambling activity and intervene when necessary, offering features like deposit limits and self-exclusion options.
- Promote Responsible Gambling: Operators should actively encourage responsible gambling behaviour. This includes sending regular reminders about spending limits, offering cooling-off periods, and providing easy access to information on safe gambling practices. Clear communication about the risk of gambling and the available support can make a significant difference.
- Create Safer Game Designs: The new game design regulations present an opportunity for operators to evaluate their games and ensure they do not promote addictive behaviour. By reducing immersion and eliminating features that encourage continuous play, operators can help prevent problem gambling.
- Ensure Transparency in Marketing: With new marketing rules coming into effect in 2025, operators must ensure their communications are transparent and respectful. Customers should have control over the marketing they receive, and promotional content should not encourage excessive gambling.
What technology can do for Online Gambling
As the regulatory environment changes, gambling operators need innovative solutions to meet these stringent requirements while ensuring customer protection. This is where technology plays a crucial role, as it allows for comprehensive financial vulnerability assessments, gambling risk evaluations, and checks that companies are complying with UKGC regulations.
It enables operators to securely access a customer’s financial data with consent, using real-time data on income, affordability, and gambling history. This information helps operators meet the £500 threshold for financial checks while identifying financially vulnerable customers early.
In addition, it offers frictionless financial risk assessments, seamlessly integrating with an operator’s platform via intuitive APIs. This ensures operators can conduct thorough financial evaluations without compromising the customer experience.
In today’s regulatory landscape, it’s essential for operators to not only comply with the law but also actively contribute to responsible gambling.
