UK LEGAL COMMENT
the legal definition of online slots is as robust as possible. Currently, the Remote Technical Standards defines slots games somewhat vaguely as “casino games of a reel-based type (includes games that have non-traditional reels)”, so it is clear that a more precise legal definition is needed. The White Paper also proposes extending some of the existing
restrictions on online slots games to other online games, with the Gambling Commission to take the lead in this area through changes to the Remote Technical Standards and/or LCCP. The Commission has indicated that it will publish its consultation on this topic by the end of July, although it is still awaited at the time of writing. The Commission’s proposals are expected to include an
extension of similar restrictions to those imposed on online slots games in October 2021, which included a restriction on slot spin speeds under 2.5 seconds, a ban on auto-play features and a ban on audio and visual celebrations of “wins” of less than or equal to the amount staked. The Commission’s advice to Government indicates that for non-slots games it will consider game speed, features that enable players to speed-up play and in-session information to customers, such as display of net position and time elapsed in its consultation. Online roulette games are probably a particular target of the new restrictions. The proposals will likely be informed by the Commission’s
recent assessment of the impact of the October 2021 changes for online slots. The Commission combined data from an online survey of 2,000 adults with market impact data from the largest operators to carry out its impact assessment. No increase in staking levels in response to the limit on spin speeds was found, along with no evidence of customers transferring play to other gambling products. In terms of reported consumer experiences of “binge gambling”, the data showed an initial decrease but then return to previous levels. The Commission reported a reduction in average session
length for those playing online slots following the changes, however the data also showed an increase in the number of sessions over one hour. Whilst the regulator concludes that “we can be confident that session length, especially the proportion of long sessions, has decreased”, it noted there was a 6.1% increase in the total number of slots sessions, suggesting the possibility that a number of additional shorter sessions (perhaps caused by lockdowns and/or the six months post-October 2021 being winter months compared to summer months in the previous period) brought the average down, whilst a significant number of player increased their session length in response to the game changes. Despite concerns about the impact of the changes, GGY from online slots appears to have been only slightly affected by the changes – the Commission’s published market data from operators shows GGY from the period July to September 2022 was £548m, compared to £562m in the same period in 2021 just before the implementation of the changes. Other factors (such as a return to in person gambling) could have also been a factor in this data. Overall, the report found very few significant changes and appears to suggest that the implementation of the new slots requirements had little effect on gambling behaviour. This seems somewhat uncompelling evidence for implementing similar changes to additional online gaming products. Whilst the Commission found no evidence of displacement to the unlicensed market caused by the slots changes, it also didn’t
ask in its survey of customers to inform their research whether the respondent had chosen to play with unlicensed slots providers in the relevant period. It’s surprising this question wasn’t asked, in particular because data showing there was no significant leak to unregulated operators as a result of increased restrictions would have been very helpful to the Commission’s argument that the risk does not justify scaling back the interventions they think are needed. The Commission’s findings in relation to changes to restrictions
on slots might indicate the impact of similar restrictions on further games will also be limited. The Government did not seek to assess the impact of changes to game design in the White Paper, but expected them to be of smaller magnitude than for the imposition of online slots limits. Nevertheless, game providers and operators will no doubt wish to assess the detailed proposals once published and respond to the Commission’s consultation. As always, the devil will be in the detail. Whether the online
slots stake limit falls at closer to £2 or £15 will make all the difference to operators and game providers and the detail of proposed restrictions on other games will also be crucial to the overall impact of the changes.
Melanie is a gambling regulatory lawyer with 13 years’ experience in the sector. Melanie advises on all aspects of gambling law including licence applications, compliance, advertising, licence reviews and changes of control. She has acted for a wide range of gambling operators including major online and land-based bookmakers and casinos, B2B game and software suppliers and start-ups. She also frequently advises operators of raffles, prize competitions, free draws and social gaming products. Melanie has a particular interest in the use of new technology for gambling products and novel product ideas.
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