review; however, and the Government is likely to follow the Commission’s lead on this topic if the Commission considers the existing arrangements are no longer sufficient. On a wider basis, the Government’s Online Advertising Program is reviewing the system for online advertising regulation in the U.K. and is considering whether sanctions for platforms hosting illegal or harmful adverts should be introduced. Impact of theWhite Paper’s proposals Key proposals for the online sector that did make it into theWhite Paper include a stake limit for online slots products of between £2 and £15 (subject to consultation) and financial risk checks for higher spending customers. The triggers for financial risk checks remain subject to consultation by the Commission and will be introduced through new license conditions. However, given that the Government has adopted figures recommended by the Commission in theWhite Paper, we know these are the figures that will be proposed by the Commission and persuasive evidence is likely to be needed to persuade the Commission to amend them following the consultation period. The proposed triggers include an “unintrusive” background check on any customer with net losses of £125 in a month or £500 in a year, which would, in most cases, involve a background check with a credit agency. For customers losing either £1,000 in one day or £2,000 in 90 days (with half these amounts recommended for customers aged under 25), a more detailed check is proposed, which would, in most cases, involve requesting evidence from the customer such as their pay slips and/or bank statements. Given the Commission’s past comments that customers should be asked to provide evidence to justify any spend over the national average discretionary income, many operators are already carrying out these checks after losses somewhere in the region of £500 per month. For those affiliates operating on a revenue share basis, the impact of the White Paper’s proposals on operator revenues will inevitably have a knock-on effect. Overall, the Government has estimated an overall reduction in the online sector’s GGY of between £515 million and £895 million, or 8%-13.9%. These figures have been based on an assumption that a mid-point figure of £8.50 as the stake limit for online slots games will be selected. If a lower figure is chosen, we can expect the overall impact on revenues to be significantly higher. Further consultations will take place on additional policy proposals regarding gambling advertising. These include strengthening informational messaging on the risks associated with gambling and a new requirement that customers will need to opt-in to direct marketing per gambling activity, so that there can be no “cross-selling” of product offers without customer consent. The Government does acknowledge that blunt measures restricting marketing of offers could unintentionally benefit the black market and states that it does “not want to restrict operators’ ability to use offers to attract new customers or retain existing ones.” In particular, the White Paper does not suggest that operators will be prevented from offering free bets and bonuses, but new measures are proposed to ensure these are constructed in a socially responsible way. In due course, the Government intends to increase the Commission’s powers to tackle illegal operators, which in turn will benefit affiliates promoting only licensed providers. Timing The White Paper envisages that its key proposals will be implemented by the end of 2024. This is a somewhat ambitious timetable, given the number of consultation exercises that need to be completed. The Commission acknowledges that it has over 60 separate workstreams arising from the White Paper and expects these will take a number of years to fully complete. However, when it comes to the headline proposals of the slots limit and financial risks checks, I would anticipate these coming into force during 2024, the exact timing depending to an extent on the number of consultation responses received and operator representations about the time required to implement changes. In the longer term there are likely to be additional advertising requirements (such as inclusion of safer gambling messages) for affiliates to take on board. But the good news is that for the most part it is “business as usual” following the release of the White Paper, with no re-examination of arrangements between affiliates and gambling operators needed immediately. Melanie Ellis is a gambling regulatory lawyer and partner at Northridge Law LLP in the U.K., advising on all aspects of British gambling law, including license applications, regulatory compliance, advertising, Gambling Commission regulatory action and gambling-related transactions. Melanie has a particular interest in the use of new technology for gambling products and novel product ideas. She is recommended by the Legal 500 and Chambers & Partners directories and is a frequent contributor to publications such as EGR and Casino International, as well as speaking at industry events. THE GAMBLING ACT WHITE PAPER Indue course, the Government intends to increase theCommission’s powers to tackle illegal operators, which in turnwill benefit affiliates promoting only licensedproviders. G P W A t i m e s . o r g 48
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