TRANSUNION
Responsible gambling – protecting consumers and businesses
Adam Hancox, head of gaming for TransUnion in the UK and Europe, looks at what our industry can do to protect the end user
G
aming and gambling have always been major social and cultural activities in the UK. Around 47% of UK consumers gamble, with 21% doing so online and 50% on mobile, according to the 2019
annual report from the UK Gambling Commission (UKGC). Continual advances in technology have brought about new ways of gambling – opening the door to new offerings and innovation within the industry. It’s an exciting time and one full of potential for both consumers and the businesses that serve them. However, digital connectivity and choice also bring new threats for operators and consumers in the form of online fraud and gambling-related harm. The industry must strike the balance between its responsibility to protect consumers and continuing to deliver the smooth customer experience they expect.
TECHNOLOGICAL AND SOCIETAL CHANGE – THE IMPACT OF COVID-19 Analysts estimate that at the start of the lockdowns in March 2020 we jumped forward five years’ worth of digital progress in just eight weeks. For the gambling industry, that meant an uptick in mobile and online platform usage and the diversification of offerings. The spend in the remote betting, bingo and casino sector in the year to March 2020 rose 8.1% over the previous year.
As the need for social distancing persists, people are spending more and more time at home, have more time to engage online and may be inclined to try new forms of gaming. The industry must work to guard against risks and to foster responsible gambling across all platforms. According to the UKGC, 0.5% of people aged 16 or over in England fall into the category of ‘problem’ gamblers, based on data from the NHS Digital Health Survey. However, in a separate study looking at young people and gambling in 2020, the UKGC found that, worryingly,1.9% of 11 to16-year olds in England and Scotland are classified as problem gamblers.
6 MARCH 2021 GIO
At the same time, many people in the UK have been negatively financially impacted by COVID-19, with our research at the end of 2020 showing that 50% reported a negative financial impact as a result of the ongoing pandemic. Younger consumers are the hardest hit, with that figure rising to 61% of GenZ. In this context, it’s essential that gaming providers are doing all they can to protect their players and their business. With this in mind we must be cognisant of financial vulnerability in gambling and our obligations to protect consumers and prevent gambling-related harm.
INCREASED REGULATORY SCRUTINY The gambling industry is going through a period of
change, as regulation evolves in line with the rapid digital innovation in the market and increasing consumer demand for clarity and transparency. As part of this, we’ve seen an increased level of scrutiny and a substantial overhaul of current gambling legislation – such as the licence conditions and codes of practice (LCCPP) changes in May 2019 and credit card ban introduced in April 2020.
Effective and coordinated regulation is vital to level and above all protect vulnerable consumers. Many of the protective moves by regulators and industry adhere to what the UKGC describes as its focus on safer gambling. Broadly speaking, this is expressed through three key objectives: that crime should be kept out of gambling, gaming and gambling should be conducted in a fair and open way, and children and other vulnerable persons should be protected from harm or exploitation from gambling.
THE TECHNOLOGY PROTECTING BUSINESSES AND CONSUMERS Building those sustainable and healthy relationships with consumers is in everyone’s interests. If a customer goes into financial distress, not only are there important social and personal consequences for
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