The UK Gambling Act 2005
It has been ‘on the horizon’ for what seems like an eternity, but finally the UK Gambling Act 2005 came into force on Saturday September 1.
For some time now, the UK has been sending mixed messages over its stance on gambling, namely the chaos of the proposed super-casino (Tony Blair thought there should be two, Gordon Brown didn’t and doesn’t want any), and the 15% gambling tax duty, which came as a surprise to many. However, one thing that remained on course was the imminent arrival of the Gambling Act 2005, which now implemented is set to alter much of how both terrestrial and online gambling operates in the UK. The message it has sent to the industry thus far is that Britain is to be a tightly regulated market, with as stringent a regulatory environment as is possible to provide the kind of safeguards necessary to ensure a safe and fair gambling culture.
Most recently, the focus has centred on the new advertising standards which will prevent online gambling operators from outside of the European Economic Area (EEA) from advertising their products in the UK, via all forms of media (TV/Radio/Print/Internet). This summer, the Department for Culture, Media and Sport released a ‘White List’ of jurisdictions outside of the EEA that had the sufficient regulatory measures in place to be able to house operators who could advertise in the UK. Yet, this list of jurisdictions contained only Alderney and the Isle of Man, which lead to a surge in relocation activity during August, with companies such as William Hill, Playboy Casino and Virgin Games, all relocating their operations to Malta. As one can imagine, this is good news for the likes of Malta, Isle of Man and Alderney, who are all in position to welcome more companies to their respective folds should the White List remain at its present size. That said, representatives from Netherlands Antilles have alluded to a December entry date whilst they remodel their existing framework to suit UK regulations, after having their initial application rejected. Submissions from Kahnawake and Antigua were still being considered as of September 1, whilst Costa Rica, Belize and Tasmania all had bids rejected.
The new Secretary of State for Culture, Media and Sport, James Purnell, explained, “I make no apology for banning adverts for websites operating from places that don’t meet our strict standards. Protection is my number one priority. The fact that only Alderney and the Isle of Man have been able to meet the high standards demanded by our white listing criteria shows how tough the Gambling Act is. Indeed white listing has actually helped drive up regulatory standards in some countries.
“The Isle of Man, for example, has made significant improvements to their regulatory regime in order to secure a place on the white list. This includes requiring all licensees to make contributions to problem gambling research, education and treatment in line with requirement on UK operators.”
The key areas
The key concepts of the Act were summarised in detail by Berwin Leighton Paisner LLP solicitor Tom Lippiett, in an article for the March/April edition of iGaming Business magazine, where he wrote: “At the Act’s core are the licensing objectives of keeping gambling crime-free, fair and open, and of protecting children and the vulnerable from being harmed or exploited by gambling.”
Indeed, social responsibility lies at the heart of the UK’s gambling mantra, with constant lobbying from concerned social groups, most recently the Salvation Army, identifying any relaxation in gambling law and/or advertising capability, as a catalyst for a potential social degeneration into gambling addiction.
Under the new Act, gaming operators are required to “publish policies and procedures for promoting socially responsible gambling, including how they will contribute to research and education about the risks of gambling, and to the treatment of problem gamblers [1].”
The UK has attempted to create the first truly secure gaming market for its consumers, having watched with interest, the chaotic and unqualified route of prohibition taken by the American government. That said, it remains to be seen how effective the UK system will be in modernising the gaming industry, if indeed, that is its intention. It would help matters greatly if the DCMS and the Prime Minister shared the same vision, or were at least singing from the same hymn sheet, but where politics is concerned, you never can tell.
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Posted by manhattan – 9 Jan 2008, 12:58 AM
Suddenly seem to be a lot more good articles on gambling.com than there were a few weeks ago Well done!