December 17, 2024

Tough UK Reforms: One in five betting accounts may undergo financial checks

By Vinolin Naidoo

The climate of the UK betting industry is in for a major shake-up with the updated proposals outlined in the Gambling White Paper. Rishi Sunak’s controversial Gambling White Paper has created much uproar in the UK betting industry, and some of the proposals outlined are considered inappropriate and discriminatory.

One of the most controversial proposals from the White Paper is the harsher financial checks on bettors’ backgrounds. One in five online casino UK betting accounts may undergo financial checks to determine whether bettors can play and wager without the threat of financial risk. The basis of these financial checks is somewhat controversial and can be viewed as discriminatory, according to a news report in The Sun publication.

The proposal outlines that the background of bettors will be monitored, and the possibility of financial checks will be determined through the physical location and the job title of bettors. Various stakeholders in the industry are in uproar over the proposal and consider these checks wholly inappropriate.

Proposals outlined in Gambling White Paper

The research and origins of the Gambling White Paper can be traced back to 2020, when the government called for a review of the Gambling Act 2005. The UK Gambling Commission (UKGC) has come under scrutiny surrounding problem gambling and the threat of gambling for certain individuals. In response to these issues, Sunak went about researching and drafting the Gambling White Paper – which outlines proposals and measures to amend the gambling laws and adapt to the digital age.

The focus of the paper is primarily on online gambling and aggressive advertising targeting minors and at-risk bettors. Online gambling in the UK consists of UK online casinos and online sports betting operators.

The White Paper serves as a framework and has not been set in stone as yet. Future consultations between all stakeholders in the industry were needed to create a united front and adopt new legislation through the UKGC. Below is a list of the proposed measures outlined in the document.

Online Protections

These proposals address the online sector and include all types of UK online casinos, both top-rated UK online casinos and hybrid online casinos that also provide an online sports betting product. 

Proposed stake limits for online slots – between a range of £2 to £15 per spin. Individual limits for 18-24 year olds of £2 or £4 based on individual risk. Individuals over 25 can bet up to £15 per spin.
Frictionless affordability checks for bettors experiencing significant net losses.
In-depth affordability checks when net losses reach £1000 within a day, or £2000 within 90 days. 
Safer design for online games including reduced game speeds and prevention of simultaneous gameplay.
Mandatory data sharing between operators on all high-risk bettors.
Improvement in responsible gambling tools such as deposit limits.

Marketing and Advertising

Limits on bonus offers, particularly on free bet offers.
Improved opt-in procedures on bonus offers to ensure targeted marketing is product-specific.
Utilizing technology to enhance age-gating and reduce targeting of vulnerable individuals on all social media platforms.
Prescribed safer gambling messaging at all touchpoints.
Sports betting sponsorships are to be reviewed. The Premier League has agreed to voluntarily end front-of-shirt sponsorships with gambling firms at the end of the 2025/2026 football season.

Gambling Commission Power and Resources

Reviewing of Gambling Commission fees in 2024, increasing all fees.
Implementation of a Statutory Levy on operators to fund research, education, and treatment of gambling-related harms.

Land-based Gambling

Strengthened measures to prevent underage gambling in all land-based establishments.
Alignment of regulations for different categories of casinos.

Petition to scrap financial checks

The feedback towards the Gambling White Paper, particularly on the financial checks of bettors, has been overwhelming. Several stakeholders from various sectors in the UK gambling industry have called for the scrapping of these checks. The paper has come under severe scrutiny, with a national petition being started to scrap the reforms.

Jockey Club CEO Nevin Truesdale created a petition titled ‘’Stop the implementation of betting affordability/financial risk checks,’’ which went live on 1 November 2023. Nearly 103,000 people have signed the petition. The rule is that once 100,000 signatures have been reached, the petition will be considered for debate in Parliament. Anyone who wants to sign the petition is free to do so and can add their details.

Gambling industry associations like the online casino industry, the British Horseracing Authority (BHA) and the Horseracing Bettors Forum (HBF) have been vocal in criticizing the proposal. A spokesman for the BHA told The Sun publication that the financial checks were inappropriate and discriminatory.

‘’Checks which could include assessing whether people are at risk of harm from gambling based on their postcode or job title are inappropriate and discriminatory,’’
Said the British and Horseracing Authority spokesman

‘’The policy would create a postcode lottery for racing bettors and set a dangerous precedent regarding people’s freedom to spend their own money how they wish … millions of people enjoy having a bet on horseracing without suffering any harm,’’
Sean Traviss

The Horseracing Bettors Forum Chair, Sean Traviss, has endorsed the petition and encouraged more individuals to add their signatures.

‘’The HBF wholeheartedly supports the petition and is extremely aware and concerned regarding future affordability checks, but they are ongoing for punters already,’’
Sean Traviss

‘’We hope the petition reaches 100 000 signatures and more as soon as possible as we want the voice of punters to be heard on this – and this is a brilliant opportunity to do that. The bigger the numbers, the better, especially from punters … racing people have already done a great job, but this is the chance for the person in the street who wants to have a bet – be it on horseracing or anything else – to have their voice heard in something that is like a vote on a policy. That can be only a good thing,’’
Said Traviss

History of gambling in UK

The origins of gambling in the UK go as far back as the 1100s. However, proper documentation of the history of gambling in the UK is detailed from the 18th and 19th Century. Today, gambling in the UK consists of various aspects and includes lotteries, sports betting, playing at land-based casinos and online casinos. Playing at the best online casinos UK is a favourite pastime of many players, and there are hundreds of licensed online casinos and sports betting sites. Below is a concise timeline of the history of gambling in the UK.

18th Century

The Gaming Act of 1845 recognized betting on games of skill as legal and made cheating a crime.

1960 

1960 saw the birth of a regulated economy with the introduction of the Betting and Gaming Act of 1960. The act recognized gambling and legalized various forms of gambling, including horseracing, playing at land-based casinos and betting at betting shops. Under the Gaming Act of 1968, gambling venues had to be licensed and regulated. The act also established the Gaming Board for Great Britain, a national regulatory which regulated the industry in the 1960s.

2005

The Gambling Act of 2005 built on the gambling laws of the 1960s and established a new regulatory body which still regulates the UK gambling industry today. The UK Gambling Commission (UKGC) was created in 2005 and created a new licensing system. The main objectives of the UKGC consisted of keeping crime out of gambling, ensuring gambling is conducted fairly and openly, and protecting all children and other vulnerable persons from gambling potential harm.

The rise of online gambling through the early 2000s saw the Gambling Act updated in 2014. A newly updated licensing system was introduced, which meant operators serving the UK had to be approved by the UKGC.

2020 – Present

In December 2020, the UK government launched a comprehensive review of the industry to ensure the laws fit the digital age. Adapting to the digital age and reforms of responsible gambling was the catalyst for the Gambling White Paper.