UK Gambling Authority Believes It Should Decide If Individuals Can Afford to Gamble
The UK Gambling Commission (UKGC) is regularly enforcing new rules and regulations within the UK's gambling sector, including some that seem excessive. In their latest move, announced yesterday, the authority claims consumers cannot be trusted to choose how to spend their money.
The UKGC is now instructing gaming companies to stop marketing to customers who spend a considerable portion of their disposable income on gambling. Additionally, operators will need to engage in regular "responsible gambling interactions" with online gaming users.
These new guidelines follow the UKGC's previous April publication introducing regulations for high-risk customers in Great Britain. Operators were then told not to target such customers with their marketing efforts.
Lots of Questions, Few Answers
Operators must identify harm indicators and respond promptly. Moreover, automated processes can be used to strengthen these indicators.
However, the UKGC fails to provide specific details about "at-risk customers." While it lists potential factors like age, health, and financial struggles, it also includes behavioral traits, such as risk tolerance, and market attributes, including access and gambling options. The UKGC also flags unmonitored overnight gambling as a warning sign of gambling addiction.
Despite this, the UKGC did not specify designated criteria that operators could apply universally. Instead, they should establish "custom" thresholds utilizing open-source data about their consumers.
The UKGC also indicated that gambling licensees have neglected to consider affordability in their customer interaction policy development. Many had implemented deposit and loss thresholds to initiate these interactions. However, these thresholds were typically too high given the average income of their clientele.
Though the UKGC promotes "custom" thresholds, its proposal betrays this concept. It suggests that open-source data can be utilized to evaluate affordability and urges realistic, "average income"-based thresholds. Using an average, however, negates the ability to establish personalized measures.
The regulator believes most people perceive gambling as problematic if they're investing a significant portion of their discretionary income. However, previous research has shown that over 75% of gamblers prioritize the activity's entertainment value, implying they're aware of their spending.
Outdated Research not Good Enough
The UKGC, which receives significant funding from the gambling industry, relies on old-fashioned studies to develop contemporary policies. It acknowledged relying on figures from four years ago while drafting its current initiatives.
The UKGC cites a 2018 Public Health England (PHE) study finding 8.5% of online gamblers fall within the "problem gambling" group. Meanwhile, 3.7% of online sports betting customers share this status. Furthermore, 1.3% of non-National Lottery lottery players are considered problem gamblers.
Nevertheless, a more recent UKGC survey disclosed a drop in problem gambling rates, from .4% last year to .2% this year. The regulator then backtracked, claiming the rate was 1.3%.
The UKGC also insists that operators set quotas for the number of people they identify as problem gamblers. It highlights that systems must identify "numbers of customers at least in line with the problem gambling rates for the relevant activity...." If not, the systems are deemed inoperable.
While the UKGC may require monthly progress reports to ensure proper functioning, it hasn't explicitly mentioned this in its most recent update.
Money for Research
The UKGC is willing to invest millions in investigating gambling harm, yet it admits to flaws in previous surveys and inaccuracies in the measurements behind its responsible gambling initiatives.
The UKGC, which has been active for about 15 years, has struggled to address problem gambling. Its recent pilot program likely indicates that a more thorough approach is necessary. It seems that a survey with only around 1,000 participants, resulting in a 21% response rate, is sufficient to establish policies influencing hundreds of millions of pounds in revenue and tens of thousands of jobs.
The UKGC's new directive takes effect on September 15.
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