Political Reforms and Gambling Oversight

The United Kingdom is not the first country to legalise gambling, but it does have detailed regulations for this industry that are often used as a model by other countries. However, it is important to remember that these regulations originate from the Gambling Act of 2005. In other words, the current laws are 20 years old, which is a very long time in the age of digital transformation.

It is now time to update the existing regulations, and many steps have already been taken toward this end: we will begin to see their effects by the end of 2025 and throughout 2026. What do these changes entail, and how will they affect online operators such as fortunica casino australia? How will land-based casinos and betting shops be impacted? Here, we will try to answer these questions.

The “White Paper” of New Gambling Regulation

In December 2023, the House of Commons prepared a report on gambling regulation and explained what changes it proposed. Such reports are called “white papers:” they are not laws, but they form the basis for a law that will be drafted. To put it more simply, what is written in a white paper often becomes law without any changes.

The same applies to this white paper: some of the proposals outlined in the report have already been implemented in 2025, with the remainder expected to be enacted by the end of 2025, leading to a nearly fully modernised Gambling Act by 2026. The white paper broadly proposes the following changes:

A gambling ombudsmanA new channel for dispute resolution.New taxesThis is not an increase in existing tax rates: it is a proposal to introduce new and mandatory taxes to combat problem gambling.Further limitation of gambling advertisementsRestrictions on the content and channels of gambling advertisements to protect children. This also includes loot boxes in video games.New protective measuresNew responsibilities for operators to protect players from financial risk.Bet limitsLimits on the maximum bet that can be placed in games and betting.

Now, let’s take a closer look at all these proposed changes. As mentioned above, some have already come into effect, while others are expected to become law by the end of 2025.

Gambling Ombudsman

This is a new channel proposed to resolve consumer complaints. Currently, problems between players and operators are resolved by ADR (alternative dispute resolution) providers authorised by the United Kingdom Gambling Commission (UKGC). There are currently eight authorised providers in the UK, which is insufficient, and the powers of ADR providers are quite limited.

The white paper recommends that ombudsmen with broader powers take on this role and complete their investigations within a maximum of one year.

New Taxes

Currently, licensed gambling operators are required to make donations to organisations such as GambleAware, but the amount is determined entirely on a voluntary basis. Official statistics show that almost every operator uses only 1% of their annual gross gambling yield for this purpose. The white paper proposes that this voluntary arrangement be made mandatory and that donation rates be set by the UKGC. The funds raised will be used to prevent problem gambling (and limit its effects).

Further Limitation of Gambling Advertisements

Current regulations already restrict gambling advertisements quite significantly, but they focus primarily on TV and newspaper ads. This is understandable given that the regulations were introduced in 2005, when online advertising was not as widespread or significant as it is today. The white paper notes that gambling operators now spend 80% of their advertising budgets on online ads and argues that the same restrictions should apply to websites. This would effectively prevent UKGC-licensed casino sites from offering almost any bonuses.

The white paper also proposes that the loot box mechanism in video games be classified as gambling. This means that many video games would not be available in the UK without protective features such as age verification.

(*) Loot box: A box purchased with real money in a video game’s own shop. It contains items or cosmetic items that can be used in the game, but what you get is entirely random.

New Protective Measures

These are quite comprehensive changes, so let’s list them:

Gambling operators are now required to perform active financial risk control. This means that automatic restrictions will be imposed on players who lose too much in a short period of time. In other words, even if the player does not request it, the account will be restricted by the operator if there is a financial risk.

For players who spend above a certain amount, it is proposed that a financial check be conducted using the open banking system. This means that the operators cannot simply monitor the player’s financial situation on their own site; they must also verify whether the player is at financial risk using other channels (similar to how banks do it).

Also, additional checks for age verification are required: operators can no longer allow account creation based solely on the player’s declaration and/or a copy of their ID. Verification will become part of the registration process and must be completed using various methods, including video calls.

Bet Limits

The final proposal in the white paper is for lower maximum bet limits for casino games and sports betting. For fixed-odds betting terminals, this limit is set at 2 GBP. For casino games, it ranges between 2 GBP and 5 GBP.

We will see the results of this reform and how it affects the gambling industry primarily by 2026, but we can already say that the new Gambling Act will be much more restrictive.

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