Online gambling has seen a surge in players as the world has been affected by the COVID-19 pandemic, writes Sumsub co-founder Jacob Sever. It was noted that existing legislation, such as the 2005 Gambling Act, was “sluggish” and “toothless” in combating the increasing problem of gambling caused by increased online gaming.
The closure of commercial and social venues and the postponement of major sporting events changed the global gambling landscape.
During the pandemic, many people felt more isolated, bored, stressed, or worried about money, raising concerns about an increase in addiction and harmful gambling. Gambling companies’ biggest cash cow is online slots, which account for the majority of British gambling spend. In 2019, the UK public spent £2.2 billion on online slots. Since then, the figures have risen according to EU Business.
Now the government is targeting online operators. It will reveal its plans to reform UK gambling laws in the spring. Regulations may include a £2 stake limit on online slots, restrictions on customer deposits, and wagering limits. Gambling operators are reminded that their digital ads, and those of their third-party marketing affiliates, must not be displayed on websites that allow unauthorised access to copyrighted material.
The UK gambling sector is now much more regulated, and the authorities are free to issue gambling licences to any operator who meets the criteria. These new UK gambling laws are there to protect you. As a result of this, online casinos and remote gambling have replaced gaming machines in brick-and-mortar casinos in the UK.
The number of gambling ads on copyright-infringing websites has decreased significantly over time, but some still appear. This highlights the need for gambling operators to implement additional controls or review their current monitoring methods to avoid this. The Gambling Commission (the Commission) has not yet specified specific measures gambling affiliate licensees should take to prevent this, but our expectations are clear.
The UK’s new Online Safety Bill aims to reduce online fraud while protecting users from abuse. It also ensures that regulated online poker sites protect their customers by using specific gambling laws.
UK credit card ban
The UK government banned online gamblers from using credit cards last year. The ban covers all forms of online gambling, from slots to lotteries. They “can cause significant financial harm,” so the UK banned them. So says UKGC CEO Neil McArthur. McArthur claims that 22% of UK problem gamblers use credit cards. The UK Gambling Commission was established by the Gambling Act of 2005 to regulate commercial gambling in the country in collaboration with various licencing bodies.
The Gambling Commission also oversees the National Lottery under the 1993 National Lottery Act.
The Gambling Commission (Commission) must aim to pursue and, where appropriate, take into account the objectives when carrying out its functions under the 2005 Act. Licensing authorities must allow gambling on-premises if they believe it is reasonable and consistent with the objectives.
Previously tightly regulated in many Western countries, gambling has become more liberalised in recent decades. Gambling participation has increased in the UK since it became regulated. The UK, like many other countries, introduced a National Lottery in 1994. In 2005, the Gambling Act legalised other forms of gambling.
Remote gaming duty is the first duty for gaming sites targeting UK players. As a point of consumption tax, sites must pay tax on their profits regardless of where they are located. Because many gaming companies are based offshore, this is an important tax to know. This tax, updated in 2019, directly affects remote online gaming.