The gambling regulator from the UK (UKGC) has proposed a crackdown that includes companies setting limits on spending.
UK.- The gambling industry in the UK continues to evolve, and the country’s regulator, UK Gambling Commission (UKGC), wants to move forward with it. That is why it has proposed new regulations that include a measure that would require gambling firms to establish how much customers can afford and set limits on their spending.
The UKGC wants the gambling firms to introduce new systems to allow them to identify clients that may be gambling more than they can. The regulator suggested that these companies could use household earnings and wealth data from the Office of National Statistics (ONS) to consider what each customer can actually afford.
Moreover, the UKGC said that operators are expected to set limits on consumers’ spending until affordability checks have been conducted. It also proposed that they will be then required to ensure that customers do not become problem gamblers by actively monitoring their betting behaviour.
With the authority to impose unlimited fines on firms that breach regulations, the UKGC can also revoke the license of those operators that do not comply with them. “We expect you to take social responsibility seriously for all customers, including VIPs. We expect you to not let commercial considerations override customer protection,” said the UKGC.
The commission suggested watching indicators like erring betting patterns, high stakes following a win and chasing losses. Other signs of problem gambling are frequency, time of day, large losses and multiple payment methods.
UKGC considers ban on online gambling credit cards
The regulator has also unveiled this week that it will hold a 12-week consultation in mid-August. This follows a recent call for evidence on the issue of gambling online with credit cards. The UKGC could ban the use after the consultation ends.
The gambling commission said that one approach would be to prohibit online gambling with credit cards. The public and other stakeholders will be subject to the consultation on other options, including restricting the credit card use. The UKGC will then take the appropriate course of action with evidence obtained by this consultation, alongside data already submitted.
The call for evidence started in February and highlights several key interest points. If action happens on credit cards alone, consumers experiencing harm may use other forms of borrowing to fund their gambling. Consumers can also opt for overdrafts and loans.
Where online gambling deposits are through some e-wallets, operators have no means of knowing which method the payment originated from. Any future proposals would, therefore, require e-wallet providers to take the necessary action to support any regulatory measures introduced.
The UKGC wants further evidence about consumers’ motivations for using credit cards to gamble and the benefits of using them.