Update on Gambling Commission Industry Working Groups
On 2 October 2019, Neil McArthur, CEO of the Gambling Commission, delivered a speech at a CEO Breakfast Briefing in London in which he looked back at the year, talked about the challenges in the industry and three opportunities to reduce gambling harm:
- opportunity 1: game and product design;
- opportunity 2: inducements to gambling; and
- opportunity 3: advertising technology.
We discussed these opportunities and industry working groups, formed in January 2020 in pursuit of these opportunities, in a blog post on 17 January 2020.
Yesterday, the Gambling Commission published an update on its “collaborative work” with the industry working groups, which included over 30 licensees, co-ordinated by the Betting and Gaming Council, and involved GamCare and people with lived experience of gambling harm.
Whilst “encouraged by the progress”, Neil McArthur challenged the industry to go further and deliver “real and rapid change for consumers”. He said:
“We set these challenges in order to deliver real and rapid change for consumers in key areas of risk. However, it is important these commitments are implemented as soon as possible. It should not take months to implement safeguards many would expect to be in place already…Whilst we are encouraged by industry proposals for making gambling products safer, we now call on operators to implement those proposals rapidly; but the proposals do not go far enough and we will now consider what additional measures we should impose on operators…Ultimately actions speak louder than words and any operator that does not put consumer safety first will find itself a target for enforcement action.”
Safer Products Working Group (opportunity 1: game and product design)
The industry has agreed to:
- A minimum spin speed of 2.5 seconds on all slots.
- Removal of game features which may encourage intensive play such as slam stops and turbo buttons.
- Removal of split-screen slots which have been associated with potential loss of control.
- A more detailed work plan which will include in-game messaging and the creation of a Betting and Gaming Council Testing Lab to investigate other game features.
- Publication of the final industry code in September 2020.
The Gambling Commission’s response:
- “…this work must now go further and faster, in particular around using demographics and behaviours to indicate risk.”
- It will issue a consultation on “priority areas” for immediate action “as soon as possible”.
Incentivisation of High Value Customers Working Group (opportunity 2: inducements to gambling)
The industry has agreed to:
- Restrict and prevent under 25s from being recruited to high value customer i.e. VIP schemes.
- All customers must first pass thorough checks relating to spend, safer gambling and enhanced due diligence before becoming eligible for high value customer incentives.
- Reward programmes will also be required to have full audit trails detailing decision making with specified senior oversight and accountability.
- Implement some measures from 14 April 2020.
The Gambling Commission’s response:
- It will issue a consultation on how to makes these permanent changes as part of the LCCP.
- Expectation that the industry implements its industry code “as soon as possible and considers most measures should be implemented within 3 months.”
- It will monitor and support implementation of the industry’s code as an interim measure.
Safer Advertising Online Working Group (opportunity 3: advertising technology)
The industry has agreed to:
- Amend the Industry Code for Socially Responsible Advertising by July 2020 to include the points below.
- A common list of negative search terms (e.g. how do I self-exclude from gambling?) and suppression websites, which will help shield vulnerable groups from online gambling ads.
- Better and more consistent use of customer data to ensure paid-for-ads are targeting away from vulnerable groups across social media platforms, instead of targeting for business.
- Implement an approach which means that advertising is only targeted at +25 age in social media and “Pay Per Click” advertising where platform facilities permit. This will protect young people and increase confidence in the social media platforms’ own age-gating.
- Age-gating YouTube channels and content.
- Adopting and rolling out to all affiliates a code of conduct which will be amended and updated on a regular basis to ensure all measures undertaken by the industry will be implemented equally by affiliates.
This working group will also:
- Establish a permanent cross-industry Adtech Forum.
- Continue the proactive engagement with a wide range of stakeholders (including platforms).
- Work with the Gambling Commission to publish and promote consumer advice, and work with online platforms and broadcasters to identify a more effective, simple and consistent approach, about blocking gambling advertising.
- Commit to monitoring and evaluating all actions to ensure only effective solutions are pursued.
The Gambling Commission’s response:
- “The industry has developed an appropriate set of commitments which should help further limit exposure to online gambling adverts by vulnerable groups.”
- It expects industry to work collaboratively with social media platforms to identify and implement further solutions.
- Operators will be “held account for these commitments” from July 2020.
Final thoughts
At the October 2019 CEO Breakfast Briefing, Neil McArthur’s final words were:
“If we work together, I am sure we can make gambling fairer and safer.”
The industry’s response to working with the Gambling Commission and investment in meeting tough timeframes should be applauded. Much work is still to be done, particularly to deliver “real and rapid change for consumers”, as the Gambling commission expects. Widespread action and engagement across the industry when the industry codes are implemented and consultations published will be paramount.