Earlier this month, brand new regulations came into effect in the UK that could greatly impact online gambling market growth across the country in the not so distant future, restricting its overall growth. Casino Market investigates.
What are the new gambling regulations?
The new gambling rules that have been implemented in the UK are all to do with age-verification. It is feared that they could make player acquisition harder for gambling operators in the country, which could end up affecting overall profits for companies in the gambling industry.
What will these new regulations ensure?
Under these new rules that all gambling operators in the UK must abide by, any new gambling customer will not be allowed to gamble until a verification process has taken place. This verification process involves making sure that that a new customers name, address and date of birth has been completely verified.
Online gambling providers will now have a 72 hour window in order to implement age-verification checks.This new 72-hour rule will also be extended to websites that provide free-play gambling games on licensee’s websites.
Will new customer acquisition be harder?
Some gambling operators fear that this new ruling could end up putting off new customers, preventing new customers from wanting to stick around with gambling sites, due to apparent obstacles put in their way.
For example, since these new regulations have been put in place, new customers who see sport betting odds will no longer be able to bet right there and then by simply signing up and placing their bet, as a verification process will need to take place.
This could also impact on the effect of advertising promotions for the gambling industry too.
Tightening controls on the gambling industry
These new regulations are just one of a number of changes that have been recently implemented by the UK Gambling Commission. The age-verification checks were first announced in February this year, and are one of a variety of rulings aimed at making stricter controls on the gambling industry.
This is because the gambling industry has been criticised in the past for being too operator friendly and too lax when it comes to regulations that are put upon it.
Why are these age-verification checks being implemented?
One of the main outcomes that are hoped to be achieved by having these age-verification checks in place in the uk is to help reduce the possibility of gambling harms across the country.
The government has also approved these new verification checks, hoping that it will shut down potential gateways to possible gambling addictions, as well being able to better detect criminal activity, as the gambling operators will have more information from the very beginning about their customers.
Furthermore, these new changes will mean that it will no longer be possible for gambling operators to ask customers to submit ID if they want to cash out, if they were able to ask this information earlier through the verification checks.
Do these new regulations go far enough?
Whilst these regulations have generally been well received, some have questioned as to whether the regulations go far enough in order to address potential gambling harms
The Remote Gambling Association recently appointed chief-executive, Wes Himes, was positive about the new age-verification check rules, as they could help to prevent access to those who are underage from trying to gamble online.
However, Himes highlighted concerns that the current system in the UK still doesn’t do enough to protect UK based customers, calling upon the government and the Gambling Commission to monitor the sector in a more controlled manner.
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