Today (23 February), the UK government announced that online slot machines will be restricted to a maximum of PS2 for those 18 to 24 and PS5 for those over 25.
The measures will be implemented in September and mark the introduction of maximum stakes for UK online slot machines. The announcement has been hailed by the government as “a landmark” for online gambling regulation.
Secondary legislation will bring in stake limits from September of this year. Operators will have a six-week period to adjust themselves to the PS5 general limit. The second period of six weeks will be used to implement any technical solutions necessary for operators to fully comply with the lower stake limits.
After a consultation of 10 weeks, the decision was made to introduce staking limitations. The government stated that the majority of respondents were in favor of putting new limits on online slot machines to reduce gambling harm. The consultation responses were from individuals, industry professionals, and academics.
White Paper Impact
This proposal first appeared in the white paper on gambling published by the UK government last April. The white paper included several suggestions by the UK government on how to reform the gambling regulation in the UK.
The Department of Culture, Media and Sport, (DCMS), at the time, said that it wanted stake limits. The Department of Culture, Media and Sport (DCMS) committed to a consultation regarding the limit between PS2 – PS15 for each spin. The news today confirms that the government is pushing for limits on the lower end.
Stuart Andrew, gambling minister said: “Even though millions of people play online slots safely each day, there’s a higher rate of problem gambling for these games.”
We also recognize that gambling-related harms can affect young adults more, so we have committed to address both issues in our paper.
The growing popularity of gambling online is evident, and this announcement is designed to level the playing fields with land-based gambling. It is also the latest in a series of gambling protection measures that are being implemented this year.
Why lower the limit for young adults?
The government explained that the reason for introducing a lower limit on stakes for young adults is due to the fact that this age group scores the highest in terms of average gambling problems.
The NHS has reported that the rate of problem gambling in the age range 18-24 is 8.7%. Online gambling includes slot machines, bingo and casino games. The government claims that this is the highest rate of gambling activity.
Also, the government stated that this group of players has lower income. The government also mentions the effect of neurological development and risk perception. It also mentions “common factors of life stages” like managing money for first time.
The government also said that there is a strong link between suicide and gambling-related harm among young adults.
GambleAware is pleased to announce new gambling limits
GambleAware’s CEO Zoe Osmond responded to the announcement by saying she was happy with the new limitations. GambleAware lobbied long and hard for these measures to protect UK players.
Osmond, in particular, commended the decision of setting a lower bet limit for young adults.
Osmond stated that “we welcome the announcement by the government to lower online bet limits for those under 25 as an important measure to protect youth.” Our research shows that this age group is experiencing a rise in gambling-related harm. Online slots, for example, are high risk products.
As we work with others in the sector of gambling harms to combat this public health problem, we’ll collaborate closely with the government to make sure that no opportunities are missed when it comes time to introduce robust prevention measures such as new regulations.
BGC supports stake limits, but caution is advised on other measures
BGC also welcomed the decision. The BGC, like GambleAware also supported the plans to reform online gambling stake limits.
BGC’s CEO Michael Dugher has warned that this and other measures in the White Paper will have an impact on industry members.
Dugher stated, “We are pleased with the new limits on stakes for slot games online.” They provide better protection for children.
It is crucial to recognize that such measures are costly for our members, and have an impact on their customers. The white paper is not meant to be read in isolation but as part of a whole package.
I would encourage ministers and regulators to be mindful of all the changes that will affect BGC members. If we do not tread carefully, and balance the regulation correctly, then it is possible that customers will drift to an unregulated, unsafe black market on the internet.
Next?
This is just one measure from the White Paper that may be implemented in some way. The white paper also proposes a tax for prevention, treatment and research as well as financial risks checks.
Most of the proposals are aimed at protecting gamblers from harm. The white paper does also propose measures that would support land-based gaming.
The government acknowledges that the UK gambling sector employs thousands. The government said that it did not wish to damage the success of this industry.
The government stated that “The Gambling Commission, along with the Government, continue to hear the concerns of campaigners and members of the public as well as the horse-racing and gambling industries in the process for consultation on these checks.” The Commission is constantly refining its design in order to strike the perfect balance between freedoms and protections.
The responses to the whitepaper measures in general will be published shortly.
