Published: 14.04.2020, 15:05
5 min read
The UK Gambling Commission (UKGC) recently published its 2020/2021 business plan. We will take you through the highlights so you can stay informed on the upcoming changes to the UK gambling industry.
The UKGC started off its business plan by acknowledging the tragic effect that COVID-19 has had on people’s lives, as well as the gambling industry. All parts of the UK’s economy are feeling the effect of preventative measures. These regulations are necessary but will certainly bring challenges next year.
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Let’s look at the business plan’s introductory forward, which contains valuable insight into the UKGC’s policies regarding consumer safety.
The Commission briefly covered social distancing, and how it means that the majority of people will be working from home during this public health crisis. Non-essential workers who are staying home may be struggling financially. This is the time for online gambling venues to make sure that consumers have adequate protection from potential gambling-related harm.
The UKGC stated that, at the time of publishing the business plan, online gambling had increased significantly. If venues take advantage of this bump in business in a manner that harms consumers, the Commission will suspend or revoke their licenses.
Next, the UKGC outlined the five strategic priorities that will help make gambling safer:
- Protecting consumers’ best interests;
- Preventing gambling harm to the general public, as well as consumers;
- Raising the gambling market standards;
- Using lottery proceeds in a charitable manner;
- Improving regulations.
Protecting Consumers’ Best Interests
The UKGC stated that it would introduce new regulatory requirements next year in order to make gambling safer. Some of these procedures will be targeted towards the Commission’s “challenges”, such as product design, advertising-technology, and high-value customers. According to the business plan, these new regulations will be released in the second quarter of this fiscal year.
Furthermore, the UKGC is planning on advising the Secretary of State during the government’s review of Gambling Act 2005. This Act of the Parliament applies to England, Wales, and Scotland, and it controls all forms of gambling. There is no established timeframe for this action yet.
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Preventing Harm
By the second quarter of this fiscal year, the UKGC will establish an “Experts by Experience” advisory board. The business plan did not contain any details about the prospective board. However, we can look at the UK’s health care industry for clarification. Members of the Experts by Experience program within Age UK work alongside organizations to assist inspectors and submit reports. The “experts” are people who either have dementia and use the program’s services or who are family caregivers of people with dementia. So, it is possible that the UKGC’s “Experts by Experience” board will contain people who battle with gambling addiction, or who have family members with that problem.
The UKGC’s next goal is to evaluate how it has been reducing gambling harm among children and to publish its findings. This report should be complete in the Commission’s fourth quarter.
Also, in the fourth quarter, the Commission will review its reproach to measuring consumer participation in gambling services. The conclusions will be published in another report.
Raising Standards
The UKGC’s first goal in this section is to actively make online gambling safer by improving its standards. There aren’t any details on its plans for this yet, but they will work on this for the entire year rather than in just one quarter.
Next, the Commission will vigilantly monitor international sports events in order to maintain betting integrity. This will also be done throughout the entire year.
From quarters 1 through 4, the UKGC is going to deliver a program of initiatives and provide industry training in order to help raise standards among online casinos.
In the third quarter, the Commission will create a way to test house assurance. The business plan did not give any details about what “house assurance” means.
The final goal in this section is to implement the “Fifth Money Laundering Directive.” This is a new legislative set of regulations regarding virtual currencies. It defines cryptocurrency, imposes reporting obligations, and mandates the registration of virtual currency wallets.
Lottery Proceeds
In the forward, the business plan had mentioned that one of the UKGC’s major priorities is to run a competition in order to determine who receives the next National Lottery license. The current license is set to expire in 2023, so the Commission needs to act now to figure out which operator should be next. Operator should run the lottery with integrity and should have a focus on giving monetary returns to “good causes” in order to benefit society. The types of causes, as well as their potential societal benefits, were not outlined.
One of the year-long actions the Commission is planning on doing is to respond to the current operator’s charitable strategy.
Next, the UKGC will publish an invitation to apply for the upcoming lottery license. This task should be delivered in the second quarter of this fiscal year.
Another goal that should happen in the second quarter is that the Commission will publish its conclusions on prize limits and transparency procedures.
Improve Regulations
This final priority has four measurable goals. First, in the second quarter, the UKGC will lobby for changes to the Gambling Commission fees.
Next, in the second quarter, the Commission will release documentation on how it handles its Corporate Governance process. This framework establishes the necessary procedures that guarantee that corporate directors operate properly.
In the fourth quarter, the UKGC is going to improve its license application process, as well as make sure that its digital services comply with accessibility regulations.
Those are all of the measurable actions the UKGC will carry out in order to meet its five priorities. However, the business plan also stated that it is flexible and that changes may be made as the COVID-19 pandemic continues to develop, and as the economic repercussions become more apparent.
