At the start of this November, a group of cross-party MPs made a proposal to slash the maximum betting amounts from an unlimited amount to a measly £2. Three weeks later, UK gambling companies are still counting losses and figuring out what to do next. But where did things go wrong?
‘Not Acceptable Betting Limits’
In their report, the British MPs bent on introducing harsher gambling laws claim the current state of things is unacceptable.
“There are no stakes, prize or deposit limits in the online gambling world,” an excerpt of the report accessed by the BBC shows.”
The parliamentary representatives then tabled their suggestions, saying the government needs to reduce the maximum betting size to £2.
“The government agreed that the way to limit the harm from fixed-odds betting terminals was to limit the stake to £2. It is abundantly clear that stake and deposit limits are needed in the online world to limit harm.
We do not see the justification for having slot machine style games online with staking levels above £2. If they are not acceptable in land-based venues they should not be allowed online.”
Proposed Rules in Detail
If the new proposals become law, the state of UK gambling could take a game-changing turn. Presently, Britain is home to some of the world’s most successful online betting sites. These companies thrive successfully thanks to the region’s liberal gambling laws.
But now, the government plans on making these crucial changes:
- No More Gambling with Credit Cards
British lawmakers intend to bring an end to the use of credit cards to fund gambling throughout the UK. So, whether you bet on VLT or slot machines, you might have to find a different way to bet online. The MPs believe credit cards help people gamble with borrowed money, in turning putting them into more debt.
- £2 Maximum Stake
The £2 maximum bet comes after the UK government made a similar adjustment to fixed odds betting machines earlier this year. At the time, lawmakers believed slashing the limits from £100 to £2 would help reduce the number of problematic gamblers in the UK.
But as it turns out, the lawmakers aren’t done limiting gambling. Reducing the maximum wager from an unlimited amount to £2 is undoubtedly a huge move. Not only would it impact shares on betting companies’ but it would also lead to a decrease of online casino players sharply.
- Fewer Gifts for VIP Players
Another restriction being proposed is to reduce the number of bonuses and cash prizes awarded to frequent VIP customers. Conventionally, players enjoy hundreds or thousands of pounds as VIP welcome bonuses.
Fruityslots.com features numerous guides on the most generous UK casinos, including some that award players 500% bonuses. But if the new UK laws come into effect, UK VIP players might have to settle for smaller rewards.
- Compulsory Affordability Checks
A few UK casinos have been punished in the past for not supporting safe gambling to British customers. With the new proposals, casinos face even more penalties for allowing customers in debt on their platforms.
Besides debt, betting companies will need to enforce background checks to ensure their customers can afford to bet. This could mean UK customers will have to provide their bank statements on every gambling site they intend to join in the future.
How serious are the MPs?
British lawmakers have a history of enforcing laws proposed by cross-party laws. Back in the early 2000s, a substantial number of MPs proposed to introduce liberal gambling laws. The suggestions became law and the Gambling Act of 2005 was enacted.
Recently, members of parliament initiated a war on Fixed odds betting machines and succeeded. But can they enforce the new proposals? For starters, the lawmakers seriously want to restrict the industry. They also have some support from the public according to a report by the UKGC.
Of course, UK gambling companies won’t take the fight lying down. There’s little they can do if the proposals become law, but they have regularly reiterated the number of jobs lost by anti-gambling laws. Earlier this year, William Hill announced it would shut down 700 betting shops in the UK, leading to the loss of more than 1000 jobs.
What’s Next for UK Gambling Companies
Despite the recent gambling laws and proposals, many of the top betting companies show no signs of leaving the UK. The region’s laws are, after all, much more liberal than most countries in Europe and North America.
But after the sudden plummet in share prices, gambling companies will have to think critically of what to do next. Naturally, the companies will want to expand beyond the UK. The US is an excellent destination now that it’s allowing states to legalize online gambling.
A few brands, like William Hill and 888 Sports already have licenses to operate in Las Vegas, New Jersey and other states with progressive gambling laws. Should more states legalize the industry; British casinos will continue to thrive in spite of whatever laws UK lawmakers introduce in the future.
Should you continue to use UK Casinos?
Nothing has changed in how UK casinos operate, at least for now. That means you can bet as much as you can afford. You can claim VIP offers and even join loyalty programs to maximize your bonuses. Credit cards are still in effect although you could also use a host of other payment options.
As such, British casino players shouldn’t feel scared by their lawmakers’ proposals. People who play table games don’t even have anything to worry about. The MPs’ suggestions mostly target online slots. Regardless, it’s still safe and legal to use online casinos.
To Conclude
Earlier this month, a group of British lawmakers tabled a report giving reasons why the government should change some gambling laws. For starters, the MPs’ want the maximum betting limit to be lowered to £2. They also propose compulsory affordability checks and lower VIP gifts and the disqualification of credit cards as payment methods in online casinos.
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