ECA Security and Safety Workshop 2024
How gambling operators use the data available to them was also covered by campaign and consumer groups, with some levelling specific criticisms regarding data governance and processing. This included data on operator interactions, showing that just over 3% of online gambling accounts spent over £2,000 in a year, but only 35.5% of these were subject to any safer gambling interaction (such as an email or pop up message), and just 0.84% received a safer gambling telephone call. Conversely, many outside the industry submitted evidence on the harms which individuals had suffered in spite of the existing controls, which they argued were therefore ineffective.
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Our consultation will take into account the differing association of different sectors with harm and/or their differing fixed costs. We will launch a consultation on the details of its design including proposals on the total amount to be raised by the levy and how it will be proportionately and fairly constructed. Government will introduce a statutory levy paid by operators and collected and distributed by the Gambling Commission under the direction and approval of Treasury and DCMS ministers.
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In addition, the distinct responsibilities and activities of affiliates would require an entirely new licensing regime to be created; and the size of the sector means that it would distort the Commission’s remit, which concentrates on gambling operators themselves. We recognise the importance of affiliates to operators and customers, and that the growth of affiliate marketing is by no means unique to the gambling sector. In the gambling sector, online affiliate marketers range from large and well-established sites to individual ‘tipsters’ working on social media.
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Over time, the Commission will continue to consider its policy and processes for enforcement to ensure effective enforcement outcomes are delivered. In a market where the largest companies account for a large proportion of gambling, the Commission will also explore options for an enhanced account-based compliance approach that will include dedicated team members assigned to the largest operators on a permanent basis. This will include more active oversight of operators beyond the Commission’s current approach, which requires operators to report key information on a regular basis but targets compliance activity and checks on a risk-based and intelligence-led basis. The government and the Commission are clear that an enhanced approach to compliance enforcement is required to effectively monitor the industry and ensure that operators are abiding by the rules. We also note that compliance with voluntary codes may be relevant in deciding operators’ suitability to hold a gambling licence during Gambling Commission enforcement action.
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On the other hand, the position taken by the ASA in its regulation of gambling advertising is that gambling is already normalised as a legitimate leisure activity for adults in Great Britain. Many responses from those with personal experience reported how harm can be intensified by ad targeting and direct marketing, and that even with self-exclusion tools in place which prevent direct marketing, the exposure to marketing elsewhere could nonetheless be triggering, especially during recovery. The responses we received particularly emphasised that regardless of the form of advertising, it can have much stronger, and adverse, impacts on those who are already experiencing problems with gambling. In contrast, most other respondents (particularly across the health, charity and academic sectors) argued that gambling advertising was in need of significant reform, with several stakeholders in this group advocating for a return to the pre-2005 regime where most advertising was banned.
Collecting detailed operator data on a regular basis will form an important part of this work and is supported by existing powers in the Act for the Commission to make data requests for its regulatory activities. As outlined above, the Gambling Commission will pursue a robust data-led strategy to bring about a step change in compliance and enforcement. This was higher than the Health Survey for England (HSE) 2018 estimate but could be due to a number of factors, including the pilot having somewhat higher rates of past year gamblers than the HSE. This new way of collecting data was successful in attracting participants and generated a good response rate across the whole of Great Britain. In June 2020, following a consultation, the Commission started piloting a new set of survey questions designed to better understand the incidence, nature and severity of harm experienced by gamblers and non-gamblers. Collecting and disseminating information relating to the extent and impact of gambling in Britain forms an important basis for this advice.
For example, the Commission will consider limits on speed of play to reduce immersiveness and rapid losses, intensifying features such as simultaneous play of multiple games could be removed, and real time information on session losses and time played could be mandated. However, as one think tank pointed out, reasonable minimum standards are in fact a targeted intervention as they prevent designedly harmful or risky play, but do not impact how most people actually use online products. Some industry respondents viewed these as poorly targeted as they would apply to all consumers, including those not experiencing harm, so advocated for a greater emphasis on protections targeted towards individual accounts showing signs of risk. For example, online roulette shares some structural similarities with online slots in being a random number generator casino game which allows for relatively rapid, intense and repetitive play. This disparity is unlikely to be commensurate with the risk which other products, particularly some casino games, pose to consumers.
Similarly, the bingo sector highlighted the Ipsos MORI research for the Responsible Gambling Trust (the previous name for GambleAware) in 2016 which found that 85% of participants play bingo to socialise. The sector cited evidence of the social and community benefits of bingo (particularly for older people). We acknowledge that licensed premises do have an entitlement to hold machines and there are costs involved in the system of notification. Having considered the evidence overall, we do not think there is any justification for adjusting the thresholds.
In particular, we are grateful to the House of Lords ad-hoc Select Committee on the social and economic impact of gambling, and we have considered all of the evidence submitted directly to that committee and its recommendations in our deliberations. In the period between the opening of the call of evidence on the 8th December 2020 and publication, the ministers responsible for the Gambling Act Review had over 100 meetings with stakeholders on gambling issues. While all industry submissions recognised the need to update the regulatory framework and presented useful evidence to consider, some outlined far more developed proposals for reforms than others. The gambling industry made 57 submissions, coming from both trade bodies (for instance Betting and Gaming Council, Bacta, The Bingo Association, and the Lotteries Council), as well as individual companies. We are particularly grateful to those who shared the evidence of their own experience of harm to inform the Review’s deliberations as they provide an important personal perspective.
- We note that peer-to-peer betting exchanges and pool betting remain available to restricted bettors, but respondents highlighted that exchange accounts can be charged a high commission on winnings, which was seen as particularly unfair given that operators do not assume liability for peer-to-peer bets.
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- These proposals are predominantly an expansion of work that operators are already taking forward to reduce children and vulnerable people’s exposure to advertising, and as such impact on operators should be limited.
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- We will consider the case for measures proposed by the sector, such as including overseas races in the scope of the levy and/or increasing the overall level of contribution and/or basing the calculation on gross amount staked rather than GGY.
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They emphasise that land-based play allows for close oversight of customers to ensure that bonuses are issued responsibly. Operators also use these loyalty schemes to track play and they can act as a basis for customer intervention where needed. The qualifying criteria for these tiers are not always published but are likely linked to the amount staked over time. The number of customers on such schemes has fallen substantially and there have been no enforcement cases related to operators failing to meet the new standards.
The GTGC/GGPC, organised by game protection expert Richard Marcus, is making its European debut following three successful years in Las Vegas. This collaboration marks a significant expansion of the ECA’s annual Security and Safety Working Group meeting, now encompassing a broader range of crucial industry topics. There have also been a number of major reports from think tanks and Parliamentary groups which have contributed to gambling discourse over recent years. Ministers and officials from other departments have also had a number of meetings with gambling stakeholders. The advice reflects the Commission’s own insights and its reflections on responses to the government’s call for evidence which were shared with Gambling Commission officials. In addition to the written submissions sent to DCMS, we have considered a number of other sources of evidence.




