The legal sports betting industry is facing change in the United Kingdom.
Online sports betting sites in the U.K. will soon be required to adhere to a new set of regulations following the release of a white paper by the country’s Gambling Commission — marking the largest shift in the industry in nearly 20 years. The white paper is the result of a legislative review that began that ran from December 2020 and included 16,000 evidence submissions.
The white paper, which is an update from the 2005 Gambling Act, contains reforms that both improve the gambling experience for operators and their consumers. A stake limit on online casino games between $2.50 and $5 for young adults between 18 and 25 has been proposed while bettors that are over the age of 25 could be limited to a stake limit of around $18.75.
Flutter Entertainment — the owner of FanDuel — already has a stake limit of $12.50 in place.
“We believe proactive change will lead to a better future for our industry and have introduced industry-leading safer gambling controls,” said Flutter CEO Peter Jackson in a statement.
In addition to the online stake limits, the white paper also proposes affordability checks for bettors who lose significant amounts of money. Gamblers who suffer a net loss of $156 a month or $625 a year will be subject to preliminary checks, while those with accounts that have net losses of $1,250 a day or $2,500 in 90 days could face heavier checks by credit agencies.
The checks are projected to impact roughly 20% of the more than 1.8 million bettors in the U.K.
The Gambling Commission’s desire to improve the livelihood of bettors through the proposed regulations comes at a cost for gambling operators. The white paper imposes a 1% levy on operators to support public health initiatives. The levy will be on all gross gaming revenue.
In the year leading up to March 2022, total gross gaming revenue for all operators in the U.K. reached $12.5 billion. The levy proposed by the white paper could reduce revenue by up to 8%.
The commission aims to have the new regulations implemented by the summer of 2024. In the meantime, gambling regulators across the world could take note of the U.K.’s pending changes.
Potential changes in North America
In the U.S., lawmakers in various jurisdictions have raised concerns about youth participation and problem gambling. Operators took the initiative in September 2022 to combat those issues by joining forces to create the Responsible Gambling Coalition. The group, which created new gaming standards for operators, includes BetMGM, DraftKings, Fanatics, FanDuel, and others.
However, as more states across the U.S. legalize sports wagering, more government regulation could be on the horizon as the industry takes shape and the market matures.
