It has been one year since the long-awaited White Paper was published on 27 April 2023 – dubbed by Andrew Rhodes, Chief Executive of the Gambling Commission, as a “key moment” for the industry. The White Paper set out 62 specific policy proposals for the Government, the Gambling Commission, and the gambling industry to take forward in order to implement the reform of gambling regulation.

A lot has changed in the last 12 months, with the opening and closing of several consultations, and Government will begin to implement the main proposals from August 2024.

We recap the journey of the White Paper and consider what will happen next.

The journey so far…

The White Paper was divided into 6 chapters, each setting out a number of proposals. We summarise below the headline proposals within each chapter and the progress made to date.

Chapter 1: Online protections – players and products

Headline proposals included:

• New default stake limits for online slot games that will be between £2 and £15 per spin, with greater protections for those aged 18 to 24.

DCMS published its response to its consultation on default stake limits on 23 February 2024, which confirmed the following stake limits would be introduced from September 2024 following secondary legislation:

1. £5 maximum stake limit per spin for adults aged 25 and above; and
2. £2 maximum stake limit per spin for young adults aged 18-24.

There will be a minimum six-week transition period for operators to introduce a £5 stake limit for all customers; followed by a further six weeks for the development of any necessary technical solutions before the lower stake limit of £2 for young adults aged 18 to 24 is introduced. Please see our previous blog for further information.

• Introduction of “frictionless” financial vulnerability checks and financial risk assessments at set thresholds to understand if a customer’s gambling is likely to be harmful in the context of their financial circumstances.

This is without doubt the most controversial White Paper proposal. The Gambling Commission opened its consultation on 26 July 2023, proposing (1) light-touch financial vulnerability checks using publicly available data at £125 net loss within a rolling 30-day period or £500 net loss within a rolling 365-day period; and (2) enhanced financial risk assessments at £1,000 net loss within a rolling 24 hours or £2,000 net loss within a rolling 90-day period. The proposals sparked great debate within the industry, resulting in significant pressure on Government and the Gambling Commission, particularly from the horseracing industry.

On 22 February 2024, the Gambling Commission published a blog updating the industry on implementation plans for the proposed financial risk checks. The plans included its intention to implement the proposals via a pilot scheme for enhanced risk checks to enable the Gambling Commission to test the details of data-sharing in practice. In addition, the Gambling Commission confirmed they will initially come into force at a higher threshold, before moving to a lower threshold later in the year. The blog came four days before UK Parliament debated the petition Stop the implementation of betting affordability/financial risk checks, reflecting the mounting pressure Government and the regulator were facing.

On 1 May 2024, the Gambling Commission published its consultation response, confirming the introduction of light-touch financial vulnerability checks, alongside a pilot of enhanced frictionless financial risk assessments, with the latter only being rolled out if the pilot proves the checks can be frictionless.

In summary, the following will be implemented:

1. Light-touch financial vulnerability checks for customers with a net deposit of more than £150 a month. The checks will involve the assessment of publicly available data. Initially, the checks will come into force at £500 a month from 30 August 2024, to ease introduction, before reducing to £150 a month from 28 February 2025. The proposed £500 annual threshold for these checks will not be implemented, following analysis that 99% of individuals that exceeded that threshold, also exceeded the £150 a month threshold.
2. A pilot of enhanced financial risk assessments for operators in the three highest bands of fee categories and volunteers in lower fee categories, for a minimum of six months. The pilot will test how frictionless assessments can work in practice and will involve working with credit reference agencies and gambling businesses to assess consumer impact. Data collection will assist in setting financial thresholds at which financial risk assessments should be conducted. It is expected that the pilot will take place between 30 August 2024 and 31 March 2025, with the Gambling Commission having the ability to extend to the end of April 2025 if necessary.

On the same day, the Betting and Gaming Council (“BGC”) published a new Industry Voluntary Code on Customer Checks and Documentation Requests Based on Spend (“Industry Voluntary SR Code”), which will operate as a voluntary interim code to provide consistency across the regulated sector to social responsibility compliance until the financial vulnerability checks and risk assessments are brought into force. The Industry Voluntary SR Code sets out what actions a BGC member must take when customers wish to make net deposits of:

1. More than £5,000 in a rolling month (£2,500 for 18-24 year olds) – in which case the operator must undertake a financial risk assessment using open source information, information obtained from the customer previously, and financial insights from third parties, escalating to “enhanced consideration” if high-risk activity is identified.
2. £25,000 in a rolling 12-month period – in which case the operator must undertake “a process of enhanced consideration”.

It is intended that a supplementary BGC code on anti-money laundering checks will also be published to provide similar consistency in respect of anti-money laundering measures. Please see our previous blog for further information.

• Amendments to game design rules to bring other game types in line with slots.

The Gambling Commission’s consultation closed on 18 October 2023 and the response was published on 1 May 2024. The changes extend requirements that already apply to slots to other online products. In particular, they ban speed features such as “turbos” or “slam stops”, game cycles of less than 5 seconds on casino products (N.B. the requirement for slots is 2.5 seconds), autoplay functions, celebrations of returns less than or equal to the stake, and the facilitation of playing multiple simultaneous products. The new remote games design rules come into force on 17 January 2025. Please see our previous blog for further information.

• Amendments to the Remote Technical Standards to ensure customers can seamlessly use pre-commitment tools e.g. deposit limits.

The aim of the proposals is to ensure customers maintain awareness and control over their gambling. The Gambling Commission’s consultation closed on 21 February 2024 and sought views on minimising friction in the customer journey when choosing customer-led tools, and on a cross-operator deposit limit. At the time of writing, a response is awaited. Please see our previous blog for further information.

Chapter 2: Marketing and advertising

Headline proposals included:

• Improving consumer choice on direct marketing by giving them more control over the gambling marketing they wish to receive.

The Gambling Commission’s consultation closed on 18 October 2023 and the response was published on 1 May 2024. Online gambling business will need to provide customers with options to opt-in to the product type (casino, betting and bingo) they are interested in, and the channels through which they wish to receive marketing. Following the consultation, the Commission removed lottery as a product type (and the land-based sector has now been excluded from the requirement) and removed post as a channel for marketing. The new rules come into force on 17 January 2025. However, in order to make customers aware of the preference choices, and so they are not hidden in an email, customers will only be required to re-confirm their marketing preferences the first time they log in after the implementation date. Until then, marketing can continue based on the customer’s prior marketing preferences. Please see our previous blog for further information.

• Incentives such as free bets to be constructed in a socially responsible manner.

Proposals include banning or limiting the use of wagering requirements in promotional offers, and banning the mixing of product types. The Gambling Commission’s consultation closed on 21 February 2024. At the time of writing, a response is awaited.

• Cross-sport gambling sponsorship code of conduct to be developed, which will guarantee a robust minimum standard, ensuring that gambling sponsorship across all sports is done in a socially responsible manner.

On 13 March 2024, Stuart Andrews MP announced that the code of conduct has been finalised and binds domestic sports governing bodies to four core principles: (1) reinvestment into sport, (2) maintaining sport integrity, (3) protecting children and other vulnerable people, and (4) ensuring socially responsible promotion. Bespoke, sport-specific codes are also being designed by individual governing bodies, and will be published and implemented “in due course”.

• Government to work with the Department of Health and Social Care (“DHSC”) and the Gambling Commission to develop systematic safer gambling messaging, independent from industry, to maximise the information available to consumers and enable them to make informed decisions, with a better understanding of the risks.

The DHSC has initialised a review of the evidence around effective public health-led messaging. At the time of writing, a response is awaited.

Chapter 3: The Gambling Commission’s powers and resources

• Introduction of a statutory gambling levy.

The statutory levy will fund research, education and treatment of gambling harms and is one of the pillar reforms within the White Paper, replacing the current voluntary system. The statutory levy will provide a sustainable and consistent income stream to support the treatment of gambling-related harms, and create a more equitable approach. DCMS’ consultation closed on 14 December 2023. At the time of writing, a response is awaited. Please see our previous blog for further information. Government confirmed in its response to DCMS’s Second Report (published 19 April 2024) that it will be publishing a response “in the coming weeks”.

• Additional Gambling Commission powers, including to tackle the black market.

The Government will introduce new powers for the Gambling Commission so it can more effectively take action against the illegal online gambling market through provisions set out in the Home Office’s Criminal Justice Bill. The Bill was introduced in the House of Commons on 14 November 2023 and is currently at Commons Report stage. In the meantime, a key commitment in the Gambling Commission’s three year corporate strategy, published on 8 April 2024, is to increase investment, resource and capacity to tackle illegal gambling.

• Increased Gambling Commission fees.

DCMS’ consultation is awaited. It is expected that the revised funding system will enable the Gambling Commission to adjust its fees on an annual basis where necessary, increasing or reducing fees as appropriate.

Chapter 4: Dispute resolution and customer redress

Headline proposal:

• Appointment of a Gambling Ombudsman.

The White Paper proposed the formation of an independent non-statutory ombudsman to improve consumer protection and ensure fairness for consumers relating to social responsibility complaints. The Gambling Commission expected the Gambling Ombudsman to be accepting complaints within a year of publication of the White Paper, however appointment of a Gambling Ombudsman is yet to take place and seems unlikely to happen any time soon. Please see our blog for further information.

Chapter 5: Children and young adults

The headline proposals relating to children and young adults tie into the proposals in Chapter 1, with separate thresholds (for example) being applied to children and young adults.

Chapter 6: Land-based gambling

Headline proposals included:

• Strengthening age verification in land-based premises.

The Gambling Commission’s consultation closed on 18 October 2023 and the response was published on 1 May 2024. New rules will come into force on 30 August 2024 requiring smaller land-based gambling licensees to carry out age verification test purchasing, extending the existing requirements in place for larger land-based gambling licensees. The LCCP will also be updated to confirm that “Think 25” is best practice for land-based premises, replacing “Think 21”. Please see our previous blog for further information.

• Introduction of cashless payments on gaming machines.

The DCMS consultation regarding the proposals closed on 4 October 2023. The proposal to remove the current prohibition of cashless payments on gaming machines aims to bring the land-based sector into the digital age. At the time of writing, a consultation response is awaited. Please see our previous blog for further information.

• Increasing gaming machine entitlements and relaxing rules relating to table/machine ratios.

The DCMS consultation regarding the proposals closed on 4 October 2023. The proposals aim to address inconsistencies and level the playing field between land-based and online operators, and to allow operators greater commercial flexibility. At the time of writing, a response to the consultation is awaited. Government confirmed in its response to DCMS’s Second Report (published 19 April 2024) that it will be publishing a response “in the coming weeks”.

Consultation progress

The table below provides an overview of consultations launched relevant to the White Paper and their current status.

Consultation	Headline proposals	Status
DCMS Consultation: Stake Limits   Opened 26 July 2023	New default stake limits for online slot games.	Closed 4 October 2023 (extended from 20 September 2023)   Response published on 23 February 2024. Changes come into force in September 2024.
DCMS Consultation: Land-based measures   Opened 26 July 2023	– Changing gaming machine ratios in arcades and bingo halls. – Introduction of cashless payments on gaming machines.	Closed 4 October 2023 Awaiting response
Gambling Commission Summer Consultation   Opened 26 July 2023	– Proposed changes to the Remote Technical Standards to bring other game types in line with slots. – Financial vulnerability checks and financial risk assessments. – Extending the roles required to hold a Personal Management Licence. – Regulatory panel changes (NB. not a proposal in the White Paper. Please see our blog for further information). – Improvements to consumer choice on marketing. – Tightening of age-verification in premises	Closed 18 October 2023 Response published on 1 May 2024. Changes will be implemented for all proposals (except regulatory panels) and will come into force across multiple dates between 30 August 2024 and 28 February 2025.
DCMS Consultation: Statutory Levy   Opened 17 October 2023	Proposals for the structure, distribution and governance of the statutory levy.	Closed 14 December 2023 Awaiting response
Gambling Commission Autumn Consultation   Opened 29 November 2023	– Amendments to customer-led tools e.g. deposit limits. – Rules around free bets and bonuses. – Changes to regulatory returns reporting. (NB. not a proposal in the White Paper. Please see our blog for further information).	Closed 21 February 2024 On 27 March 2024 the Gambling Commission confirmed it will be introducing a requirement for the submission of quarterly regulatory returns for all licence types, effective from 1 July 2024. Responses are awaited for the other proposals.
Gambling Commission December Consultation   Opened 15 December 2023   NB. not related to the White Paper , but includes important proposals alongside other consultations	– Changes to criteria for imposing a financial penalty and penalty calculation methodology. – Changes to financial key event reporting	Closed 15 March 2024 Awaiting response

Other updates

Other updates from the last 12 months include:

23 May 2023 – The Gambling Commission published Evidence Gaps & Priorities, a document outlining current evidence gaps and the Gambling Commission’s approach to address these over the next three years.

19 June 2023 – Gambling Commission published a new hub for operators engaging with third parties.

25 July 2023 – As part of wider work by Government on online advertising and consumer protection, DCMS published its consultation response to the Online Advertising Programme.

14 September 2023 – Gambling Commission Industry Forum established.

23 October 2023 – The Gambling Commission called upon licensees to participate in a user research programme aimed at sharpening the dataset received through regulatory returns.

31 October 2023 – The Gambling Commission’s updated customer interaction guidance came into effect.

14 November 2023 – Criminal Justice Bill (which contains new powers for the Gambling Commission to tackle illegal online gambling) introduced in the House of Commons.

22 November 2023 – The Government published the Autumn Statement 2023, which included proposals to change the structure of remote gambling taxation.

1 December 2023 – The Betting & Gaming Council’s seventh edition of the Industry Group for Responsible Gambling Code for Socially Responsible Advertising came into force.

29 February 2024 – Publication of the first wave of the Gambling Commission’s Gambling Survey for Great Britain.

11 March 2024 – Gambling Commission Industry Forum members appointed.

27 March 2024 – Quarterly regulatory returns required for all licence types announced, effective 1 July 2024.

1 April 2024 – LCCP GAMSTOP and suicide reporting requirements came into force.

8 April 2024 – Gambling Commission launched its Corporate Strategy for 2024 – 2027.

25 April 2024 – House of Lords debate on the impact of gambling advertising, predicting enhanced pressure for greater change to advertising following the results of the Gambling Survey for Great Britain due to be published in July.

Where are we now?

The White Paper generated a substantial amount of work for all stakeholders, including the Government, the Gambling Commission and the industry. The intention was for the main measures in the White Paper to be in force by Summer 2024 and Government and the Gambling Commission were committed to and focused on implementing the proposals as quickly as possible.

It is clear a lot of work has been done by all parties to advance the White Paper proposals. Days after the one-year anniversary of the White Paper we saw publication of the Gambling Commission’s response to its Summer Consultation, which included next steps on some of the most critical aspects, such as financial vulnerability checks and enhanced risk assessments. The publication of the Industry Voluntary SR Code demonstrates the collaboration between the Gambling Commission and industry and the concerted efforts being made to ease transition during this period of change. However, some targets have been missed, for example the 1-year deadline for appointing the Gambling Ombudsman has now passed.

Whilst many of the critical proposals in the White Paper can be progressed through LCCP changes and voluntary measures, the goal of Summer 2024 now presents a tight timetable in respect of those proposals that require secondary legislation. Regardless, Government still appears to be intent on reaching that goal as it confirmed in its response to DCMS’s Second Report (published 19 April 2024) that it will be publishing responses to DCMS’s consultations on the statutory levy and land-based measures “in the coming weeks”. It also noted that it “remains on track to introduce the statutory levy via secondary legislation this Summer, with levy funding flowing to organisations as soon as possible thereafter”.

Whilst the 2024 General Election appears unlikely to affect the final outcome of the White Paper proposals, particularly as our understanding is that Labour is supportive of the balance of proposals therein, it may delay matters, as gambling is unlikely to be a high priority for any new government.

What can we expect next?

1. Responses to the following consultations:

• DCMS Consultation: Land-based measures (expected in the “coming weeks”).
• DCMS Consultation: Statutory Levy (expected in the “coming weeks”)
• Remainder of Gambling Commission Autumn Consultation.
• Gambling Commission December Consultation.

2. DCMS consultation on Gambling Commission fees.
3. Introduction of the statutory levy (expected this Summer).
4. Government consultation on bringing remote gambling into a single tax structure.
5. Establishment of Gambling Ombudsman (now behind schedule).
6. Extension of Gambling Commission powers to tackle illegal gambling.
7. Government review of the horserace betting levy.
8. Publication of the second wave and annual report of the Gambling Survey for Great Britain.

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