The UK administration unveils plans for reforms.
Following years of refinement, the UK's Department for Digital, Culture, Media, and Sport (DCMS) has revealed its report on gambling. This significant document suggests various changes in the sector, from setting budget limits for specific gambling apparatus to limiting advertising for online games.
The United Kingdom's gambling history dates back centuries, with the first bookmakers setting up their shops in the 18th century. Today, around six million people in the country indulge in betting, particularly on horse races and football matches. In 2013, there were almost 10,000 gambling stores nationwide. Regulating this vast industry poses a significant challenge for the administration, as it aims to boost and maintain the gaming sector's growth, boasting over 100,000 jobs, while addressing the social issues stemming from excessive gambling.
The last far-reaching reform of this sector was the 2005 Gambling Act, which started its operation in 2007. The Gambling Act chiefly liberalized the market, permitting advertising for gambling products on TV, a practice still being utilized widely by providers. As a result, the industry's revenue soared, increasing from approximately £8.4 billion in 2008 to £14 billion in 2016—an astonishing rise of 65%.
The Concern with Fixed Odds Betting Terminals (FOBTs)
The "fixed odds betting terminals" (FOBTs) have played a crucial role in this economic surge. Since 2009, the revenue from these machines has almost doubled and today makes up around £1.8 billion annually. Although the number of machines has only slightly increased, players are losing more money on these devices, which primarily offer virtual roulette games. Why? The machines are deemed risky due to their high betting limits and short game intervals. Players can wager up to £100 every 20 seconds.
Despite the average roulette win rate of 97%, you can lose your stake within an hour with this speed. Each individual FOBT terminal brings in an average of £55,000 per year—double the average British wage. The fast pace of play and high stakes make the devices a significant issue for addict-prone gamblers. They are thus often called the "crack cocaine" of gambling in British media.
Twelve Weeks for Reaction
The British administration is attempting to tackle this form of gambling head-on. FOBTs have been under extended scrutiny and are believed to be partly responsible for growing addiction issues among gamblers. Nevertheless, a conclusive decision about the FOBT's future rules is yet to be reached. The responsible minister, Tracy Crouch, has given the industry and customers a 12-week window to voice their opinions. Only then will a verdict be rendered on how the devices' use will be regulated.
It is already anticipated that usage limits will be tightened. Figure 100 will no longer be the threshold, but 50, 30, 20, or 2. In the report, the ministry acknowledges that it hasn't decided on a figure which would satisfy both parties despite numerous preparations. It's likely that the companies will protest for higher limits. They fear substantial revenue losses and the threat of causing over ten thousand job losses.
Online Gaming in Focus
Another focus of the report is online gambling, which has been gaining ground and currently accounts for nearly half of the overall turnover. The government aims for companies to capitalize more on the data they collect to safeguard players. The objective is to identify and prevent problem gambling earlier. The anticipated GAMSTOP system is intended to facilitate this by allowing players to self-ban from all online gambling platforms. However, its activation, initially planned for 2017, seems unlikely.
The report also delves into the rising advertising for gambling. Adults are now confronted with five times the amount of such content as compared to 2005. While TV marketing is presumed to play a minor role in the development of gambling addiction, the administration focuses on enhancing the content requirements to prevent misleading win promises. The authorities also plan to review targeted online advertising, as it can prove particularly damaging to gambling addicts, who are frequently reminded of their susceptibility and encouraged to gamble. Social networks will also be involved in these discussions to make it more accessible for affected individuals to avoid such content.
In general, the suggested changes to regulations are fairly tame. Based on the potential guidelines for Fixed Odds Betting Terminals (FOBTs), the industry will likely face some losses, however, the government's plans for online games are rather unclear. While player protection is supposed to be enhanced, specific prohibitions have not been introduced thus far. Consequently, some providers viewed the report as direct criticism. Joe Saumarez Smith, a Bede Gaming board member, was one of those providers. For him, the report functions as a "final warning." The online sector still gets one last opportunity to self-regulate responsible gaming. If this fails to satisfy the authorities, he predicts more stringent legal requirements. The report anticipates that the GAMSTOP system will be implemented by the end of the year. However, none of the online companies have even received the technical specifications yet, causing a significant gap in time between the proposed date for implementation and the actual rollout. Consequently, the government may use this setback as an excuse to introduce its own measures.
Read also:
- Dachshund sporting a down jacket for handball
- SPD intends to raze Elbtower if required.
- The dire situation faced by the horseback champion is revealed.
- Expecting Children at Siemens Company
Source: www.onlinecasinosdeutschland.com