- Four minutes read
iGaming in the UK: How to navigate the shifting regulatory landscape
Struggling to keep up with the latest UK gambling regulations? Rory Howard, Paysafe’s General Manager EU iGaming, shares an overview of recent changes.
As the global iGaming industry embraces regulation and licencing at scale, complying with a diverse set of requirements has become increasingly challenging for operators. Here’s how the latest changes affecting the UK market are shaping up and what merchants can do to prepare for them.
For insights on how iGaming regulations are developing worldwide, download our whitepaper, Future-Proofing iGaming: Navigating the Regulatory Maze.
The current state of play in the UK
Last year, the UK government published its long-awaited Gambling Act Review whitepaper – a 268-page document outlining its recommendations for the industry. The report’s release has kick-started a range of regulatory changes, including:
1. Stake limits on slots: There will be a wagering limit of £2 for 18-24-year-olds and £5 for players aged 25 and over.
2. Affordability checks: Operators are now required to carry out checks on customers who make a net deposit of £500 or more, with the threshold tightening to £150 from February 2025.
3. Bonusing: The whitepaper proposes new rules around the offering of free bets and bonuses to ensure they’re not used to entice vulnerable customers. This includes stricter rules on how ‘free bets’ are promoted.
4. Game design: There are rules to reduce spin speeds, with the introduction of a 5-second minimum for all casino games. There’s also a greater emphasis on incorporating responsible gambling features within games, such as deposit limits and time-outs.
5. Age and identity verification: Operators now need to verify the age and identity of players before they can make a deposit or access free-to-play games.
The goal of these reforms is simple: to protect players from the harms of addictive gambling. However, there’s now a greater onus on operators to monitor players’ activity and ensure they are gambling responsibly.
A focus on financial vulnerability
One hot topic to arise from the new rules is the need to assess a player’s financial situation to understand if they are at risk of harmful gambling. Now, the UK Gambling Commission requires operators to check players’ affordability i.e. their ability to gamble within their means.
To ease operators in, the UK Gambling Commission is following a phased rollout. As of 30 August 2024, if a player deposits £500 within a 30-day period, operators will need to conduct an affordability check. Next year, the threshold will be reduced to £150.
Operators will want to ensure these checks are frictionless for players, which will be made easier by the fact they can use publicly available data, such as records of previous bankruptcies or individual voluntary arrangements (IVAs). They will also want to consider how best to engage with players who fail affordability checks. For example, by directing them to resources where they can find support.
The importance of a compliant payment solution
As gambling regulations tighten in the UK and elsewhere, it’s critical for operators to work with international payment companies that offer support in compliance management. By working with payment processors that have in-depth industry experience – and a strong team of in-house regulatory experts – operators can get the support they need.
A good payment partner will offer access to advanced compliance tools and technology to simplify the process of monitoring and reporting on transactions, as well as verifying customers’ identities. As a result, your business can continue to run efficiently when regulations change.
At Paysafe, we understand the importance of transacting quickly, securely and in line with local regulations. That’s why we proactively update our platform to meet the latest requirements. With 25 years’ experience helping iGaming merchants navigate compliance complexities, our technology is built to meet the highest of standards.
Getting ready for change
While these changes to UK gambling regulations have been widely anticipated, it’s only relatively recently that we’ve had concrete guidance on what changes will be introduced and when. Now, operators need to review the changes and the deadlines for achieving compliance.
In the short term, taking the necessary steps to comply might seem like a headache. However, in the long run, these changes will enhance the integrity of the UK’s gambling industry and help protect players from harm.
To find out more about the regulatory trends impacting operators in the UK, Europe and South America, read our report: Future-Proofing iGaming: Navigating the Regulatory Maze.
