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The United Kingdom Gambling Commission has been at the forefront of regulatory changes in recent times, and today (Feb 4), it unveiled new measures, including a mandatory deposit limit for first-time depositors, which is set to take effect in October.
According to a press release published by the Commission, the changes follow a review of the 2023 White Paper High stakes: gambling reform for the digital age, where numerous proposals on how to improve the UK’s regulated gambling market were highlighted.
Players Gain More Control Over Their Gambling
Beginning October 31, all operators licensed by the UK Gambling Commission (UKGC) will be required to prompt players to establish a financial limit before making their first deposit. While this is already in play at many gambling sites, the new update will see all regulated sites enforce it.
The Commission is hoping that this move will give players greater control over their gambling, providing them with an easier way to set and maintain deposit limits. As part of the new change, operators would also be required to remind players to review their transaction and account information every six months. Players will then decide if they want to set new limits or change existing ones.
“These rules will take good practice already offered by some operators and expand that so customers can expect the same standards across the industry,” the Commission said.
The UKGC also acknowledged the challenges players face in navigating the current deposit limit systems. They noted that inconsistencies in how different operators present these limits can lead to confusion and frustration among consumers. In light of this, the Commission confirmed it would be launching a brief supplementary consultation aimed at improving clarity and transparency, ensuring that players fully understand how financial limits work.
Increased Transparency on Customer Funds Protection
In a move to enhance consumer awareness and better protect their funds, the Commission will now require licensed operators to clearly outline in their terms and conditions whether customer funds are safeguarded in the event of insolvency. This includes detailing the level of protection offered and the methods employed to ensure it.
Furthermore, customers will be informed of these protections at the point of their first deposit, with operators categorizing the level of protection as ‘not protected – no segregation,’ ‘not protected – segregation of customer funds,’ ‘medium protection,’ or ‘high protection.’
Starting October 31, 2025, operators whose customer funds carry the label ‘not protected’ will be mandated to remind consumers every six months about the lack of protection of their funds.
“Whilst there is no legal duty on gambling operators to protect customers funds in the event of insolvency, many of them do so voluntarily,” the UKGC said.
“The changes will help consumers understand which operators protect their funds and which do not. This information will support them in making choices about who they gamble with.”
New Statutory Levy Also Sees Changes
Last November, the Commission introduced a new statutory levy that required licensed operators to make yearly financial contributions to a list of gambling harm research, prevention, and treatment organizations. This code has now been eliminated.
Now, operators will be mandated to pay between 0.1% to 1.1% of their gross gambling yield (GGY) to the levy. The specific rate will vary based on the sector, vertical, and type of gambling offered, taking into consideration the licensees’ operating costs and the risk profiles of their products.
While the exact start date for the statutory levy has yet to be confirmed, it is anticipated to commence on April 6. The Commission also assured licenses that they will be notified of the implementation date once it is officially announced.
Tim Miller, executive director for research and policy at the Commission, also commented on the new regulatory updates, stating, “These changes illustrate our commitment to ensuring gambling is fair and open by improving consumer empowerment and choice.”
“[They] will help consumers decide on deposit limits, enable them to keep track of their spending and ensure they are fully aware of what happens to their funds should an operator become insolvent,” he added.
“We will now continue our work to deliver our remaining White Paper commitments, including our programme of evaluation.”
Source: iGamingBusiness
