UK Gambling Commission publishes new consumer protection guidance
The UK Gambling Commission has published further guidance for online gambling licensees ahead of new regulation changes. The UKGC announced new rules in April 2022 to protect online gambling customers at risk of harm.
The new rules coming into effect in September 2022 are to ensure online gambling businesses such as online casino sites are identifying and protecting their customers. The priority is to minimise any risks to gamblers that could experience harm due to their gambling habits. The new guidance has been released ahead of time to allow licensees time to put new systems in place and fully understand what the Gambling Commission expects of them.
The process encourages three elements of customer interaction – identify, act, and evaluate. Licensees must continue to look for red flags in customer behaviour and respond accordingly. Then the customer must continue to be monitored for the full period of time that they hold a casino account for example. Follow-ups and interventions must be recorded and carried out in a timely fashion.
Indicators that licensees must focus on when attempting to identify potential harm associated with gambling include customer spending, spending patterns, the amount of time spent gambling, gambling behaviour, customer-led contact, and the use of gambling management tools.
Operators must implement automated processes that will identify any troublesome behaviour. They are to be prevented from carrying out any marketing activity and cannot offer new bonuses for any at-risk customers. They will need to record all interactions with at-risk customers and seemingly be able to prove this has taken place by providing evidence to the Gambling Commission via routine casework. The licensee needs to remain mindful that the greater the harm identified, the quicker they must take action. Action must be proportionate to address the potential harm identified.
The licensee will need to adhere to the requirements as an ongoing practice and ensure any third-party providers they work alongside follow the same rules.
Gambling Commission Chief Executive, Andrew Rhodes reported “Time and time again our enforcement cases show that some operators are still not doing enough to prevent gambling harm. These new rules developed following extensive consultation, make our expectations even more explicit.
“We expect operators to identify and tackle gambling harms with fast, proportionate and effective action and we will not hesitate to take tough action on operators who fail to do so.”
“In the current context, including the rise in the cost of living, it is more important than ever for operators to meet these requirements to identify customers at risk of harm.”
The UK Gambling Commission received 13,000 responses to address failings with online gambling operators. Following the consultation and call for evidence, robust changes were quickly made. Further consultations are expected in the near future to identify financially vulnerable customers. They wish to work on the three key financial risks for customers in the areas of binge gambling, significant unaffordable losses over time and the risks for those that are financially vulnerable.
