UK Government Proposes Stricter Customer Checks to Tackle Problematic Online Mobile Gambling

The UK government has recently unveiled a set of proposals aimed at tackling the problem of online mobile gambling.

The announcement, made on Thursday, April 27, involves the introduction of stricter regulations to bring the industry up to date with the rise of online and mobile gambling.

The proposed changes are the most extensive overhaul since the Gambling Act in 2005, with a range of measures aimed at reducing the risk of problem gambling.

Tracing the Problem Back to Previous Regulations

The UK's online gaming industry has grown alarmingly in recent years, with many attributing this growth to the 2005 Gambling Act.

A Bloomberg piece explains that this Act permitted gambling firms to advertise their products on TV and radio, including sports betting, online casinos, and poker. Until 2014, remote operators selling to British customers were not required to hold a UK license.

This lack of regulation allowed betting firms to develop addictive and habit-forming games catering to their customers' gambling tendencies.

With the rise of smartphones, these firms were able to exploit a new market of players who were constantly connected to their devices. As a result, many individuals have incurred significant losses from their online gambling activities.

A report from the House of Lords has revealed that problem gambling is becoming a significant issue in the UK, with one-third of a million people now affected. Perhaps even more concerning is the fact that, on average, one problem gambler commits suicide every day.

What is particularly worrying is that young people are the most at risk, with 55,000 problem gamblers aged between 11 and 16. For girls in this age group, the rate of problem gambling is twice that of any other female age group, while for boys, the rate is three times that of adults.

Despite gambling being illegal for minors, the industry's efforts to prevent it have been largely unsuccessful.

A Look at the Latest Proposal

Reuters reports that one of the key proposals is the introduction of online stake limits between £2 ($2.49) and £15, which will help reduce the amount of money people can lose in a single bet.

Additionally, gambling firms will be required to step up affordability checks on their customers, with the aim of preventing people from gambling beyond their means.

The draft law will also introduce a statutory levy on betting firms to fund research, education, and treatment for problem gamblers. This is a significant step forward, as it will provide much-needed funding for organizations working to help people with gambling problems.

Lucy Frazer, Secretary of State for Culture, Media, and Sport, said that the changes would bring pre-smartphone regulations into the present day. She added that "a flutter is one thing; unchecked addiction is another," emphasizing the need to ensure that the industry is properly regulated.

The COVID-19 pandemic has accelerated the shift towards online gambling, with companies such as Entain and Flutter Entertainment reporting sharply higher profits.

The proposed changes aim to ensure that the industry is properly regulated, with measures in place to protect vulnerable individuals.

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