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- The imposed limit should serve as a maximum stake which customers can choose to stake up to, rather than as a new default which operators drive customers towards, or which is otherwise seen as objectively ‘safe’.
- 3% of consultation respondents felt online slots should be banned altogether and others suggested that stake limits should be based on the individual financial circumstances of a customer.
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The stake limit proposals outlined in this consultation response are in line with those intentions. Similarly, some respondents highlighted concerns around the use of gambling-like mechanisms being applied to non-gambling contexts such as video games and cyrptocurrencies. 23% of respondents highlighted that young people will be discriminated against on the basis of age if a separate lower stake limit is implemented.
Moreover, it takes consideration of the structural differences between land-based in-person gambling and online play. Around 20% of customers currently choose to stake over £5 on a spin at least once a year (so will be impacted by this measure), but only 0.6% of all spins are over £5. Some respondents called for additional measures not in scope of the consultation, including further action on advertising and game design.
Some operators responding to the consultation raised technical concerns about the description, where the proposed wording extended the definition established by the Gambling Commission in 2021 in an effort to ensure boundary pushing products are captured. Some respondents considered the description to be too vague and therefore open to loopholes, while others felt that it was too restrictive. We are grateful for the time and effort stakeholders committed to help inform and strengthen our policy position. Alongside updated data from the Gambling Commission on the size of remote gambling licence holders split by size of workforce and number of licences held. However, 18 to 24 year olds placed a slightly higher proportion of stakes between £2 and £10, compared to older adults. The primary difference is at staking levels over £10, which take up a lower proportion of overall stakes for young adults aged 18 to 24 than those 25 and over.
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It is unclear how many of those who supported consistency in limits for all adults would support a lower limit for young adults if the general limit is to be higher than £2. Our intention is that there will be future opportunities to review and if necessary adjust the limits. The Gambling Commission is also exploring improvements to online harm detection algorithms which will mean other markers of harm are more effectively identified and acted on. Such account-based protections will be further strengthened by proposals for new obligations on operators to conduct checks to understand if a customer’s gambling is likely to be unaffordable and harmful, in the form of frictionless financial risk checks. In addition to the formal consultation responses, we also received survey results from 3,898 members of the campaigning organisation 38 Degrees and a petition set up by GWL signed by 12,775 people. These were considered separately to the case for a lower limit for young adults, which is discussed in Part 3 below.
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Many of those who felt the description was too vague expressed concerns that gambling operators could be incentivised to develop products which are functionally similar to online slots but might be argued to be technically exempt to circumvent stake limits. This is in contrast to the land-based sector, where electronic gaming machines (offering games which are otherwise similar to online slots games) are subject to stake and prize limits in legislation. There were some clear themes amongst the responses, notably that online slots are a high-risk gambling product and that statutory stake limits are necessary to reduce the risk of gambling-related harm. In the modern-day, the graphics of online slots are equally as important to players as the gameplay aspect. All of these new online slots and casino games will be compatible with all mobile devices to provide the best gaming experience. The best thing about new online slots is the updated features that appear in the newest games on offer from both old and brand-new gaming providers.
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Following publication of the consultation document, we received further information from operators on how staking patterns vary for young adults aged 18 to 24 and the frequency at which all adults stake over a certain level. Stakes over £5 comprised 0.06% of all spins and stakes over £20 comprised just 0.02% of all spins. However, it also found that even players identified as high-risk play mainly at low stakes. This includes academic research, parliamentary reports, and findings from the stake limit cut on B2 machines (fixed odds betting terminals) in 2019. This measure is designed to work together with the wider package of policies in the white paper, including financial risk checks, data sharing on high-risk customers, and making online games safer by design. Following this transition period, if operators are unable to develop solutions to adequately distinguish between customers who are 25 and over and those who are under 25, the expectation is that they will not be able to offer any customers stakes exceeding £2 per spin.
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