UKGC issues new guidelines to operators as online gambling grows during lockdown

The UK Gambling Commission (UKGC) issued Tuesday new guidance for online operators to ensure players protection as the regulator presented new evidence that shows some gamblers maybe at greater risk of harm during lockdown. Included in the guidance is the need for affordability checks, prevention of reverse withdrawals and restrictions on bonus offers. 

UKGC published new data collected through the gambling industry and also through YouGov surveys, showing that during lockdown gambling participation is down overall. This reflects the closure of land based venues and the cancellation of sporting events, with only a small number of people starting to gamble for the first time.  

However, the regulatory body noted that while there is no evidence to suggest an increase in problem gambling, the shift in the market as a result of Covid-19 evidence shows an increase in the use of certain gambling products. Data collected from gambling firms themselves shows that while the number of sports bets has fallen by 31%, while online slot machines are up 25%, poker climbed by 38%, and betting on virtual sports has soared by 40%.

The majority of those gambling indicate that they have not increased the time or money they have spent, but two thirds (64%) of more “engaged gamblers”  –those who spend on three or more betting products a month– reported that they have increased the time or money that they are spending on at least one online gambling activity including National Lottery products. The data also shows that in terms of time spent gambling, while overall session length has decreased, there has been an increase in the number of sessions that are played for over an hour, by 23% year on year to 1.9 million in March.

Today we have also published data which shows the impact Covid-19 is having on consumers and the gambling industry. Further refreshed data will be released over the coming weeks. Read the full report: https://t.co/BWdSdSaZDg pic.twitter.com/A8mqwY8ndj

— Gambling Commission (@GamRegGB) May 12, 2020

The UKGC has reviewed its current guidance in light of the new risks, prompting online operators to follow these additional guidelines "as soon as possible": 

• Prevent reverse withdrawal options for customers until further notice;
• Cease to offer bonuses or promotions to all customers who are displaying indicators of harm;
• Interact with customers who have been playing for an hour in a single session of play;
• Review thresholds and triggers for new customers to reflect the operator’s lack of knowledge of that individual’s play and spend patterns;
• Conduct affordability assessments for individuals picked up by existing or new thresholds and triggers which indicate consumers experiencing harm - limiting or blocking further play until those checks have been concluded and supporting evidence obtained;
• Implement processes that ensure the continual monitoring of their customer base – identifying patterns of play, spend or behaviours have changed in recent weeks.

UK Gambling Commission chief executive Neil McArthur said in a statement: ““Operators must use the data they hold to protect their customers and now, more than ever, it’s vital that online operators really know their customers by monitoring how long they are playing for and understanding how financial uncertainty is impacting them and what they can afford to gamble with. To ensure operators do that, we are strengthening our guidance and expect operators to take account of that to prevent bonus offers or inducements being offered to customers who are showing any sign of harm”. 

“Work was already underway to address many of these issues but this means we will now accelerate this work due to the unique situation that many consumers will find themselves in during lockdown. We will continue to monitor and publish the data that we are collecting and we will take further measures if required. We are monitoring online operators closely and if we see irresponsible behaviour we will step in immediately, suspending licences if we need to,” he warned.

UK Minister for Sports, Tourism and Heritage Nigel Huddleston commented: "It is vital that people are protected from the threat of gambling related harm and I welcome these latest steps from the Gambling Commission. We will continue to monitor the situation closely and will not hesitate to take further action if required.”

Later this month, the UKGC will be opening a consultation which will propose strengthened measures around ethical product design, including reverse withdrawals and VIP Inducements. 

The data was taken from YouGov’s Covid-19 tracker, a weekly online survey of around 2,000 adults in Great Britain and from submissions of the largest operators, covering approximately 80% of the online gambling market —noting that it may include some duplication of customer numbers where it is not possible to identify unique customers.