© PA Archive William Hill
A two-and-a-half-year-long process to review the UK’s gambling laws has today proposed that betting firms must perform new ‘passive’ checks to ensure that punters who spend more than £125 in a month can afford their losses, with more detailed checks for those who spend more thasn £1,000.
But after years of delay, many of the actions included in the reforms – such as a cap on the amount that can be bet on slots – will be put to consultations, meaning it could still be some time before the reforms are put in place.
A white paper published today outlined the plans to reform the gambling industry, with the intention to create a framework to replace the ‘pre-smartphone’ 2005 Gambling Act.
One of the key points of contention had been ‘affordability checks’, under which betting sites would be required to check certain financial details about customers before they bet more than a certain amount.
However, the level of these checks and what they would involve was the subject of debate, as reformers called for lower limits and more stringent checks, while gambling industry trade body the Betting and Gaming Council called for higher limits and checks that would not require customers to share bank statements.
The review promised affordability checks, as Culture Secretary Lucy Frazier promised the Government would “force companies to check if customers are losing unaffordable amounts”.
The proposal would bring in “passive” checks for customers losing £125 over a month or £500 within a year. Those checks would mostly look for county court judgements or other credit ‘black marks’.
“Most of them will not know that they’re taking place, but they are really important to helping prevent customers from losing money they can’t afford,” Frazier said.
Further, “more detailed”, checks will exist, though, for higher-spending customers, such as those spending £1,000 in a day or £2,000 over three months. These will be closer to formal credit checks.
Similarly, the Government consulted on stake limits for online slot games for those aged between 18-25.
The white paper also includes a statutory levy to replace voluntary funding of research and treatment groups. Reform groups had cricitised the existing model, which they felt led to funding only for groups that would not harm the sector’s profits.
The white paper will also include the creation of a new ombudsman to stand up for customers.
Shares in betting operators largely rose on the publication of the white paper, with major firms having already incurred a cost of implementing some of the reforms they expected. According to reports earlier this year, uncertainty as the white paper was delayed had appeared to scupper a takeoverof Ladbrokes owner Entain.
Yet while the white paper was delayed, a number of firms were fined for allowing customers to gamble unaffordable amounts. Entain was handed a record penalty last Autumn for safer gambling failings, only for that record to be broken earlier this year by William Hill, which allowed a customer to deposit £20,000 within half an hour of opening their account. Other major firms such as Paddy Power owner Flutter and 32Red owner Kindred have also receivbed penalties while the review of betting laws was underway.
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