How Will the New £100 Spending Cap Influence Gambling in the UK?

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Radical changes to the gambling legislation were called by the Social Market Foundation (SMF) to protect the British players from heavy losses. This proposal was published on August 5th recommended a spending cap of £100 per month for each player. SMF also claimed a revision of the way gambling operators are taxed in order to apply a financial policy to the offshore gambling companies. 

The report also proposed to limit the stake on online slot games between £1 and £5 and other casino games should be restricted on the way they are created rather than financial limits. The Social Market Foundation is an independent think-tank founded in 1989 in the UK. This organism focuses on public services and welfare policy including the gambling sector. 

As this organization’s report proposed a low cap about £23 a week on gambling, the Betting and Gaming Council has responded to this proposal. How this new £100 spending cap will affect the gambling sphere in this country?

New Rule From Gambling Commission

The Betting and Gaming Council has responded that they disagreed with the suggestion of a low cap on spending because they could not determine how much an individual could spend. The BGC added that the Gambling Commission has introduced new rules to reinforce regulations online as well as making gambling safer and more transparent to the players. On these new standards, no ID verification betting operators must also make their KYC process stricter by checking the customers’ identity before allowing them to deposit. This verification must be completed within 72 hours. The rules aim to protect vulnerable gamblers and minors from inducement to gamble.

Another new regulation introduced by the UKGC is the prohibition of using credit cards in the gambling industry. This ban came into force on 14 April 2020 prohibiting the use of the credit cards as payment options to the gambling operators in the UK. As stated by this regulator, many online punters who use the credit cards as payment methods are at-risk gamblers or even compulsive gamblers. Despite significant inconvenience brought by this prohibition, this measure is, hence, taken to protect the players as well as preventing gambling-related harms.

Furthermore, another change in the UK gambling sector is about a credit card in PayPal. The users of this e-wallet no longer make a payment on the gambling platforms using their PayPal credit card. The customers who want to bet and pay with their PayPal account have to add another method. These new regulations were established to avoid criminal activities and prevent gamblers from high spending.

More Protection for Problem Gamblers

Aside from the new rules introduced by the UKGC, the policies to protect the gamblers are also implemented in the UK. The self-exclusion solutions are among these strategies to minimize the gambling harms there. Gamstop is one of the well-known self-prohibition schemes created in 2018 to help the gamblers to ban themselves on licensed gambling websites. This program does not only enable the players to exclude themselves from the gambling operators of their choice but it also comes with effective options to support them. 

From March 31st, 2020, the Gambling Commission required all the online gambling operators in the UK to let their customers use Gamstop after the expiration period. That is the reason why this organism has become well-chosen there. Another recognized self-blocking service is Gamban that is set-up with the goal to block the gambling platforms and applications. Launched by the reputed organism GambleAware in 2015, this scheme is mainly seductive for its effective programs to help the targeted individuals.

 Moreover, Blocking Gambling Transactions are other noticeable names in the gambling industry and as their name indicates, these services allow the players to block their gambling transactions. Thus, with these several blocking schemes, more protection policies have been established to protect and support the problem gamblers.

Possible Resurrection of Black Markets

The Betting and Gaming Council also added that the £100 spending cap can be the source of black markets’ reappearance. About 30 million people appreciate betting whether occasionally or frequently. These players are allowed to choose the games or activities they want to wager. They, actually, can choose between lottery, slot, bingo, sports, and many others. 

The commission affirmed that they have applied strong approaches to ensure that the players are able to gamble within their means. Minimizing the spending cap will, therefore, impact the economy of the country. This measure to implement safer betting can lead to illegal, offshore, and unregulated black market operators online. These offshore firms do not have the same interventions, verifications, and high standards required by the Betting and Gaming Council.

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