The gambling industry in the UK has found itself in an unenviable position lately as it has come under a serious scrutiny of regulators and politicians.
Over the past year or so, we’ve witnessed numerous campaigns aimed to establish a much stricter regulatory framework, which could seriously influence the bottom line of online casino operators as well as land-based establishments hosting Fixed Odds Betting Terminals and popular FOBTs.
Advertising & Affiliation
One of the most recent developments saw several official bodies in charge of regulating advertising guidelines come after online casinos, requesting them to remove any advertising materials that could appeal to children and young people under the legal gambling age limit.
This stipulation pertained primarily to use of popular children characters on their banners and in promotional materials. Characters such as Jack and the Beanstalk, Little Red Riding Hood, and other protagonists of children stories and cartoons have often been used in online slots and, subsequently, in numerous promotions launched by various online casinos. UK regulators believe this has to be stopped immediately.
Another aspect of online gambling industry that’s been under a lot of fire lately is affiliation. There are numerous bonus review sites and pages comparing new gambling operators against each other. These serve as outlets where players can find the crucial information about online casinos and decide which one they want to join.
The UK Gambling Commission wants these affiliates to adopt a much more responsible approach as well, insisting they introduce warnings and responsible gambling links and advice on their sites. Of course, the UKGC doesn’t have the direct influence over affiliate pages located on servers all over the world, but they’ll be issuing fines against casinos accepting player traffic coming from affiliates not adhering to these rules.
Land Based Shops at Risk as Well
Apart from the online segment, politicians are also looking at land based shops, particularly the ones hosting FOBTs. Namely, they want to reduce the maximum allowed stake for these terminals, which currently stands at £100. The law draft has already been introduced for the MPs to review, and the only thing left to discuss is how big the reduction will be. Some are even advocating lowering the upper limit to just £2, which would probably spell doom for many shops, leading to them having to close down and let go thousands of employees.
Taking Serious Steps against Gambling Addiction
All these regulatory changes are directed primarily at preventing gambling addiction, which has been on the rise in the United Kingdom. Particularly worrying is the fact that there is an increasing number of underage gamblers displaying signs of gambling addiction.
UK regulators and numerous politicians seem resolved to do something about this issue and the series of regulatory changes is a clear indication of this. Online operators found in breach of these laws will be risking hefty penalties and serious offenders might even lose their UK licenses. Losing a UK license would be a big blow for any gambling operator seeing how this is one of the most lucrative gaming markets in Europe with a tremendous potential.