Jul 13: Exclusive: Leaked UK White Paper details
Jul 13: Exclusive: Leaked UK White Paper details
Affordability limits, 'smart' stake limits on slots, free bets ban all feature.
Good morning. In something of a departure for E+M, today we have an exclusive with a leak of further details from the UK government’s as-yet-unreleased White Paper. According to well-placed sources, the highlights include:
Affordability
‘Passive’ checks around affordability limits set at £125 net loss within one month of £500 within a year
Detailed consideration of a customer’s financial situation will kick in at £1,000 over a 24-hour period or £2,000 within 90 days.
‘Smart stake’ limits
A ‘smart stake’ limit is to be introduced for online slots with a low default of between £2-£5 per spin.
An upper cap limit of between £10-£25 per spin after enhanced checks.
Free bet and bonuses
A ban on online VIP schemes.
The targeting of online bonuses like free bets based on a customers’ spend or losses will be prohibited.
Affordability
£125 net loss within a month or £500 within a year.
Level one: Passive checks for signs of financial distress (e.g. CCJs)
Automatic: According to what E+M has seen, this will involve automatic background checks “which customers will not even notice” to check for financial vulnerability indicators such as CCJs. The details will be hammered out via a Gambling Commission consultation this summer.
Higher level of spending affordability checks: £1,000 in 24 hours or £2,000 within 90 days.
Largely frictionless: Again, according to what we have seen this is where “there should be more detailed consideration of a customer’s financial position”. The intention is that these checks should be “largely frictionless for customers” and conducted online via credit reference agencies or via other means “such as open banking in the first instance”.
Further information would only be requested from customers where it is necessary to complete an assessment “and the use of any data gathered through such checks will be restricted to assessing affordability and indicators of financial distress”.
Trigger happy: The triggers will be lower for new accounts (£500 losses in 24 hours for the first month).
The document adds that once a “suitable and secure platform” is in place, the Gambling Commission will consult on making data sharing for high-risk customers mandatory for remote operators.
The government and the Commission will also “explore the possibility of deposit limits becoming mandatory online”.
According to the document: “We are clear it is not the government’s, the Gaming Commission’s or industry’s place to examine every facet of (the) individual’s finances and make value judgments about what and what isn’t affordable.”
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‘Smart stake’ limits
Get smart: A ‘smart stake’ limit is to be introduced for online slots with a low default of between £2-£5 per spin. The final limit will be subject to consultation.
According to the White Paper, “the minority of customers” who wish to stake more would be able to subject to passing enhanced checks with an upper cap limit of between £10-£25 per spin.
The smart stake will be introduced via a DCMS consultation in the Autumn of this year.
The evidence does not support stake limits on non-slot gaming or betting products.
Free bets and bonuses
A ban will be introduced on online VIP schemes.
The targeting of online bonuses like free bets based on a customers’ spend or losses will be prohibited.
A consultation on the free bets and bonus ban will also look into maximum wagering requirements and minimum time limits.
Land-based casinos
Small acts: Measures include the conversion of the 1968 Act casinos that meet the requirements of 2005 Gambling Act, small casinos will be eligible for the same gaming machine allowance. The document estimates that consists of around 70 of the 1968 Act casinos.
Sports: Land-based casinos will also be able to offer sports betting, though it is not clear whether that is all casinos or just the 2005 Act versions.
Mayfair casinos will be able to offer credit to international visitors who have “undergone stringent checks”.
Sympathy: The government “is sympathetic to” the introduction of machines with higher stake limits (£50 stake, £100k winnings) for Mayfair casinos.
The White Paper suggests that on the subject of direct card payments on machines, the government is “not convinced” that enough customer protection can be put in place for “full account play” as with online.
Other measures
The government is “ not persuaded by arguments for online affiliates to be licensed”.
There will be an increase in license fees with the Gambling Commission now having the power to set its own fees.
The Gambling Commission will be given the power to require and analyze bulk data from online operators to identify non-compliance.
White label arrangements will not be touched as “the risks posed to consumers are not fundamental to white-label arrangements themselves”.
An Ombudsman scheme to handle, adjudicate and where appropriate order redress for any gambling complaints which are not satisfactorily resolved by the operator. This will be part of the DCMS autumn consultation.
Research, prevention and treatment (RET) funding to be paid directly to the Gambling Commission under the “strategic direction” of the DCMS. The fee for online operators will be 1% of GGY.
Still talking
According to sources, the government and the Gambling Commission are still in talks over much of the detail of the White Paper.
With the status of the government itself currently in limbo, it is very difficult to know when it is likely to be published, although rumors suggest next week. The detail seen so far is from the first draft of the White Paper, though a second draft is believed to be in circulation.
A question still surrounds what new gambling minister Damian Collins will add or subtract to the White Paper after the resignation just last week of Chris Philp. He might well be more sympathetic to the land-based casinos.
Calendar
Jul 21: Betsson Q2, Evolution Q2
Jul 22: Kindred Q2
Jul 26: Boyd Gaming Q2
Contact us
Scott Longley scott@clearconcisemedia.com
Jake Pollard jake@openmediaservices.com
thanks