Due to the recent regulations in place and the possible new laws that will be coming to the UK gambling industry, some bettors are making a choice to leave the market and seek out currently present in the UK online gambling sites in other countries. Customers are concerned about the financial checks that are being conducted by casino websites and sportsbooks.
The UK requires affordability checks to be performed where gamblers have to provide proof of income. The latest information about the updated gambling laws shows that stricter checks may be required. Affected customers have claimed that this is a violation of civil liberties and should not be applied. The UK Gambling Commission has not formally asked any operators to conduct these checks However, most companies have been forced to do so to avoid being issued fines.
The stricter affordability checks have many players concerned that they will not be able to provide the proof of income that is required. This will limit the ability to place bets on licensed websites. The request for financial information has caused many UK gamblers to close accounts at UK-licensed sites and access unlicensed websites that are operating on the black market. These sites will not require these personal details or financial information.
White Paper to Introduce New Regulations
Affordability checks are one of the main concerns in the white paper that will alter the current gambling laws in the UK. While some sites already perform these checks, all operators in the UK will be required to do so under new laws. These checks require all customers to provide bank statements, tax returns, and other proof of income before they are able to make deposits and gamble.
The UK is trying to implement stricter gambling regulations to battle the issue of problem gambling. With more people placing bets online and a decline in overall income since the pandemic, the number of problem gamblers has been on the rise. In addition to having stricter affordability checks, the proposed gambling law will also include limits on stakes made at online casinos, banning free bets, removing VIP schemes, and controversial affordability checks.
These regulations may be needed to address problem gambling, but they will hurt the industry in the UK. It is estimated that the reform will result in lost revenue within the industry by £700 million or more. The affordability checks alone are what will drive UK gamblers to other websites online, resulting in a drastic loss of players placing bets at licensed websites in the UK.
New laws are being considered as a response to the gambling problem in the UK. Almost 0.5% of the population in the UK battle gambling addiction and 2.2 million gamblers are at-risk. There is a need for stricter regulations to help those with addiction while still providing gamblers the ability to casually place real money bets.