The legislation aims to protect children and vulnerable people,
cut crime and keep games fair. Operators will have to prove they
can meet tough new laws aimed at making gambling more socially
responsible. But critics have voiced fears that the result of the
biggest overhaul of regulations for decades could be a rise in
problem gambling.
The Act covers: gaming in arcades and adult gaming centres;
betting; bingo; casinos; gambling in clubs and pubs; lotteries
(except the National Lottery); and remote gambling.
In theory, free draws and prize competitions are free from
statutory control under the Gambling Act 2005. However, there are
important changes that affect operators of such events. For
example, the Act changes the "skill" test that can distinguish a
legal competition from an illegal lottery. (Pinsent Masons is
running free OUT-LAW Breakfast Seminars on the new regime for
promotions in October. See the link below.)
Perhaps the biggest change under the Act is that casinos,
bookmakers and online betting sites will be able to advertise their
services on TV and radio in the UK for the first time.
The changes also open the door for the first £1 million bingo
prize and lift restrictions on casinos, such as the requirement for
customers to be members.
The Act came into force in stages. The first stage created the
Gambling Commission, established in October 2005, which took on
many of the existing responsibilities of its predecessor, the
Gaming Board of Great Britain. In addition, the Commission will now
regulate British-based remote gambling operators, arcades and the
betting industry.
As one of the most powerful gambling regulators in the world,
the Commission will be able to levy unlimited fines, withdraw
licences, bring prosecutions, enter premises, seize goods and
suspend and void bets.
The Act also gives a new role to local authorities, empowering more
than 1,500 licensing officers (alongside 50 specialist Gambling
Commission compliance officers) to inspect gambling premises to
enforce the new laws.
As of 1st September, British-based operators who wish to provide
gambling must have a Gambling Commission licence. Over 2,500
existing operators completed their application ahead of the April
deadline to ensure continuation under the new arrangements.
All operators must abide by the Licence Conditions and Codes of
Practice – which includes requirements to ensure all operators
promote socially-responsible gambling.
According to the Department for Culture, Media and Sport, which
has responsibility for gambling, key changes to the industry's
regulation include:
- For the first time, betting shops and remote gambling sites
based in the UK will be governed by a dedicated regulator, the
Gambling Commission.
- Local authorities will be able to impose sanctions on
operators, including limiting opening hours and reducing numbers of
gaming machines.
- Local people will be able to object to new gambling licences
and seek reviews of existing ones.
- New codes governing advertising come into force, requiring ads
to be socially responsible and banning the use of models under 25
or linking gambling to sexual success.
- Adverts from outside Europe that fail to meet the UK’s strict
regulatory requirements will be banned.
- TV advertisements will be allowed for the first time, but
subject to a voluntary 9pm watershed (with the exemption of betting
ads during sports events).
- The membership requirement on casinos is lifted.
- Bingo clubs will be able to offer rollover jackpots.
- Questions on phone-in quizzes on TV and radio must be harder.
This is to prevent pay-to-enter phone quizzes that are too easy
operating as if they were lotteries and therefore evading limits on
stakes and prizes and the legal requirement for licensed lotteries
to give 20 per cent of profits to charity.
- Gambling operators will be required to display prominently
information about responsible gambling and how to get help for
problems. They will also have to work proactively to prevent
underage gambling and contribute to problem gambling treatment and
research, education and public awareness.
- Betting cheats, including sportspeople, will face a two-year
jail sentence.
- UK-based betting operators will be required to pass information
to sports bodies to prevent cheating.
- Gambling debts will become legally enforceable, helping to
ensure those who win get paid.
Gerry Sutcliffe, minister with responsibility for gambling,
said: “Many people like to gamble, and for the vast majority it’s
harmless fun. This has and always will be the case. But what has
changed is the way people gamble.
"It used to be that you had to leave the house to place a bet,
but advances in technology have changed that – TVs, home computers
and mobile phones have become the digital equivalent of a betting
slip and casino chip.
“The Government brought in the Gambling Act because most of our
laws were nearly 40 years old and these developments were going
unchecked and unregulated.
"The new Gambling Act will give the Gambling Commission and
local authorities unprecedented powers to ensure gambling is
conducted fairly, children and vulnerable people are protected and
crime is kept out.”
The new regulations, however, have met with some criticism. Tthe
Salvation Army said the new laws allowed for a general increase in
the number of gambling premises, particularly betting shops.
"Gambling is not a normal leisure activity," said a spokesman
for the organisation. "Whilst some people enjoy a flutter or bet
from time to time, gambling can become addictive and cause many
problems. The results can be devastating on the individual, their
friends, family, and on society."
Meanwhile, the charity GamCare has called on the government to
make changes to the new regulations to force bookmakers, casinos
and some online operators to include its helpline number in
advertisements.
GamCare staff are gearing up for a rise in the volume of calls
in the wake of the changes. A spokeswoman said: "An increase in
gambling equates to an increase in whatever small proportion of
individuals who gamble who get into difficulty."
Gambling Commission Chairman Peter Dean, said: “We are a nation
of gamblers, even if some who admit to the occasional flutter would
shy away from that description.
"Parliament has set the basic rules about what gambling is
permitted. The Gambling Commission’s task is to ensure that
gambling is crime-free, fair and safe. It is a cause of great
satisfaction to me that we now have the proper tools to do this
within a modern system of gambling regulation which is second to
none in the world.”
Free seminar on the new regime for promotions:
Pinsent Masons is running a series of free, one-hour OUT-LAW
Breakfast Seminars on Promotions: the new regime for prize draws
and competitions at its offices across Britain in October.
See: OUT-LAW Breakfast Seminars
