Upcoming financial inspections of online gambling platforms stirring up turbulence in Great Britain
The United Kingdom is moving forward with plans to implement financial checks for online gamblers, a move aimed at preventing gambling harm and ensuring personal freedoms are respected. However, the proposed reform has sparked heated debates within the gambling industry, particularly among operators in the popular horse racing sector.
The UK Gambling Commission's white paper, published this spring, outlines the reform, which includes light-touch "frictionless" financial vulnerability checks. These checks will be required from February 2025 for gamblers with net deposits over £150 per month. The checks use publicly available data to identify signs of financial distress without affecting credit scores.
The proposed checks aim to determine if players can afford to continue gambling, with players who lose £1,000 in 24 hours or £2,000 in 90 days potentially facing further scrutiny. However, the industry is reacting with outrage, fearing that these reforms, along with ongoing policy shifts, could drive more players to the unregulated black market.
Operators argue that with the 2023 reforms still being rolled out—including affordability checks, statutory levies, and stake caps—new measures amount to being "punished twice." They worry that further regulations, including a proposed increase in the Remote Gaming Duty to 42%, will damage the regulated UK market.
The gambling industry fears that these regulatory changes could lead to significant financial losses. The popular horse racing sector, in particular, fears significant financial losses due to the introduction of financial checks. The sector has initiated a petition against the proposed financial checks for online gamblers, which has gained traction with over 70,000 signatures.
However, it's important to note that the petition does not address other measures proposed in the UK Gambling Commission's gambling law reform. These include stake limits on slots, funding for problem gambling support, measures to restrict gambling advertising, establishment of an ombudsman to resolve complaints, and measures to combat the black market.
If the petition reaches 100,000 signatures, it must be debated in Parliament by law. Meanwhile, fears persist that the black market could grow as players turn to illegal operators who don't conduct financial checks. Some bettors might quit before revealing sensitive financial information, potentially leading to losses for the industry.
The reform includes changes that have been the subject of debate, with the UK Gambling Commission's gambling law reform having sparked heated debates. The industry, particularly the popular horse racing sector, is pushing back strongly, concerned about regulatory overload and unintended consequences such as a shift to black market operators.
Online casinos in Germany may face similar debates, as businesses in the casino-and-gambling sector express concerns about potential financial impacts from increased regulation. The horse racing sector, specifically, fears significant financial losses due to the introduction of stricter finance checks, much like those proposed in the United Kingdom.
Opposing parties argue that consecutive reforms and regulations, such as increased Remote Gaming Duty, could further strain the casino-and-gaming business in Germany, potentially leading to the growth of the unregulated online gambling market.
