UK LEGAL COMMENT
Stake limits for online slots Also announced recently is the Government’s decision to implement a £5 stake limit for online slots games, with a £2 limit for those aged 18-24. The £5 limit brings online slot games in line with what is available in land-based casinos, although those aged 18-24 will continue to be able to play for £5 in those venues whilst being more restricted online. From a legal perspective, the definition of what is a slots game is key. The Government has affirmed its decision to use the Gambling Commission’s definition that slots are “casino games of a reel-based type (includes games that have non-traditional reels)”. The Government’s intention is that “boundary-pushing” products are captured, however the definition does allow games that may have a similar player experience to online slots, but without any reel-based elements, to continue to be offered without a stake limit. Whilst some might consider it self-evident that if a person is gambling for lower stakes they are less likely to suffer harm, the reality may be more complex. In its impact assessment, the Government stated that online slots have an association with harmful behaviour and that “the ability of operators to offer and for customers to play at theoretically limitless slots stakes likely contributes to the associative indicators of gambling harm”. However, it does not present any evidence demonstrating a relationship between available stakes and gambling harm, nor to show what the expected impact of restrictions is on gambling behaviour and gambling harm. In particular, it is unknown to what extent stake limits may lead to customers playing for the same amount of time but losing less money, playing for a longer period of time and losing the same amount of money, or seeking out alternative unregulated options to continue playing with higher stakes. The decision to introduce a lower limit of £2 per stake for
the 18-24 age category is explained in the DCMS consultation paper as being based on Public Health England data from 2012-2018, as well as advice from the Gambling Commission which references factors such as continuing cognitive development and lower discretionary income in the younger age group. 2018 data from the NHS Health Survey (the last survey which included detailed breakdowns for problem gambling rates) indeed found higher problem gambling rates
for the 16-24 age group based on PGSI scores. This was only the case for men; in fact, zero rates of problem gambling were found for women in this age category using both the PGSI and DSM-IV tests. The many difficulties associated with categorising customers as male or female likely led to the decision to apply the lower limit to everyone in the 16-24 age group. It will be difficult for the Government and/or Gambling
Commission to assess the impact of the slots stake limits after they have come into effect. Firstly, this is because a whole range of additional measures stemming from the White Paper will likely be implemented around the same time. In addition, the Commission plans for data from its new Gambling Survey for Great Britain to replace data from the NHS Health Survey as official statistics very shortly. As this new survey format has found much higher rates of problem gambling overall, it will be impossible to compare its data to that mentioned above to determine whether problem gambling rates, particularly for the younger age group and for online slots, have declined. A draft Statutory Instrument is awaited, which will create a
new licence condition to implement the stake limits from September this year. The £5 limit will come into effect first, with a further six weeks to develop technical solutions for the lower £2 limit for 18–24-year-olds.
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.
MARCH 2024 31
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