- Regulatory obligations are weighing on William Hillthe UK gaming sector. The Triennial Review announcement is due in late October and a potential £2 stake limit on FOBTs would.
- Topic - Triennial review. EC2Y 5EA, United Kingdom; Pageant Gaming Media US 200 Park Avenue S, 16th Fl, Suite 1603 New York, NY 10003; Main Switchboard.
- Triennial Review Gambling Uk Usa
- Triennial Review Gambling Uk Books
- Triennial Review Gambling Uk Sites
- Triennial Review Gambling Uk Supreme Court
Later today the House of Lords Gambling Industry Committee will be releasing their report into the social and economic dimensions of gambling, with GVC Holding's Chief Executive Officer Kenny Alexander welcoming its publication, as well as also supporting calls for the UK government to review the Gambling Act.
Much as the headlines last week concentrated on what the UK government's triennial review had to say – or didn't - about the maximum stakes on FOBTs, the detail regarding the current state of efforts to bolster responsible gambling measures gave a clear indication of the direction of travel.
In her introduction to the consultation document, Tracey Crouch, the minister for sport who also has responsibility for gambling, said that when it came to the online business, the government believes that more needs to be done to promote responsible play and protect consumers in this sector.
'The Gambling Commission is examining the online sector and encouraging operators to increase action to identify harmful play, design and pilot better interventions and put in place measures that work,' she wrote.
The report goes on to state that with online gambling being account based, it means operators know who their customers are, what they are spending their money on, and their patterns of gambling. Dream team poker game.
'This provides opportunities for operators to use customer data to identify and minimise gambling-related harm,' the report said, adding that while a number of operators are already developing and operating algorithm-based systems to identify harmful behaviours and activity, 'very few operators were able to review and evaluate the effectiveness of their approach.'
'The Government welcomes steps taken by some operators to incorporate behavioural analytics into their responsible gambling systems and the Commission's work to raise standards across the sector,' the report added.
Responding to the review document, Dan Waugh, partner at gambling consultancy Regulus Partners, said the review of social responsibility 'indicates that it is prepared to give the industry one more chance to get its house in order - but that stricter regulation will follow if this fails.'
'For all parts of the industry the message appears clear – take harm seriously or face the consequences,' he added.
It is in the this that Playtech's recent acquisition responsible gambling technology provider BetBuddy should perhaps be viewed.
Led by founder Simo Dragicevic, BetBuddy is a startup provider which has been working with City University's artificial intelligence researchers on a number of responsible gambling initiatives including providing an early-warning system for potential problem gambling behaviours.
BetBuddy had already signed up lottery operators such as Ontario Lottery which is using the system as part of its responsible gambling suite of products for the Play OLG online offering.
It is the prophylactic aspect of the acquisition that perhaps is most interesting. Ian Ince, head of regulatory affairs and compliance at Playtech, said the strength of the BetBuddy product and the knowledge and experience that the team brings was unparalleled.
'Responsible Gambling is a cornerstone in all Playtech's offerings,' he added. 'This acquisition demonstrates our commitment to producing solutions and games that will enable Playtech and its customers to be the most responsive and responsible businesses in the industry.'
Playtech said it had trialled BetBuddy's analytics software earlier this year, using its algorithms to detect at risk behaviours. It added that the addition of the BetBuddy team and methodologies to Playtech's data-driven approach will allow it to take the next step in evolving its gambling content to ensure it is developed and deployed in a sustainable manner.
As Ince pointed out, BetBuddy now get access to the biggest online gaming data set in the world – a huge advance for the system. Showing the breadth of areas where BetBuddy can potentially play a part, Dragicevic added that BetBuddy would be working with the Playtech compliance, business intelligence, and game development teams to further the aim of raising standards in responsible gambling.
Given the greater focus of regulators around the world on promoting safer gambling environments, the BetBuddy acquisition is a significant move, particularly in the UK.
'Where harm minimisation is concerned, the rules of the game have now changed,' says Waugh at Regulus of the triennial review. 'The public relations approach no longer seems to cut any ice with a Government that is looking to the industry to provide meaningful solutions to a lengthening list of problems,' he adds.
'Here, the industry has been given a golden opportunity to be on the front foot and demonstrate the efficacy of self-regulation. However, the opportunity is likely to be short lived and the scrutiny both intense and increasingly well informed. Now is not the time to spin, blame-shift or rely on other stakeholders: somewhat reducing the standard playbook.'
Responsible gambling has certainly moved up the agenda suggests Canaccord Genuity analyst Simon Davies who points out that the three-month added consultation period undoubtedly meant 'the can was effectively kicked further down the road.' But he adds that with online gaming much more clearly in the sights of the government, it also looks like it has become a much bigger can.'
Visit GamCrowd.com for news covering the global gambling industry.
The long-awaited triennial review is set to be released later this week, detailing reforms on the controversial form of betting that has caused quite the storm of concern amongst MPs and government officials.FOBT's have long-been regarded as the lifeblood of UK bookmakers, however, this pivotal decision will dictate what the landscape will look like in the future for the highstreet industry.
Currently, the machines allow for punters to bet £100 per spin on the terminals, which is equal to £300 a minute. The government is set to recommend reducing this stake to £50, £20 or £2 a play.
According to figures posted by the Gambling Commission, £1.7bn was spent on FOBTs between October 2014 and September 2015, accounting for 56% of betting shops' profits.
Triennial Review Gambling Uk Usa
If the government goes ahead with the minimum bet of £2, it is likely that bookmakers will campaign hard against this ruling, arguing that such a cut would be the industry's ruin.
If the maximum stake is reduced to £2, half of the 9,000 betting shops in the UK becoming unprofitable and risk closure by 2020.
It is in the this that Playtech's recent acquisition responsible gambling technology provider BetBuddy should perhaps be viewed.
Led by founder Simo Dragicevic, BetBuddy is a startup provider which has been working with City University's artificial intelligence researchers on a number of responsible gambling initiatives including providing an early-warning system for potential problem gambling behaviours.
BetBuddy had already signed up lottery operators such as Ontario Lottery which is using the system as part of its responsible gambling suite of products for the Play OLG online offering.
It is the prophylactic aspect of the acquisition that perhaps is most interesting. Ian Ince, head of regulatory affairs and compliance at Playtech, said the strength of the BetBuddy product and the knowledge and experience that the team brings was unparalleled.
'Responsible Gambling is a cornerstone in all Playtech's offerings,' he added. 'This acquisition demonstrates our commitment to producing solutions and games that will enable Playtech and its customers to be the most responsive and responsible businesses in the industry.'
Playtech said it had trialled BetBuddy's analytics software earlier this year, using its algorithms to detect at risk behaviours. It added that the addition of the BetBuddy team and methodologies to Playtech's data-driven approach will allow it to take the next step in evolving its gambling content to ensure it is developed and deployed in a sustainable manner.
As Ince pointed out, BetBuddy now get access to the biggest online gaming data set in the world – a huge advance for the system. Showing the breadth of areas where BetBuddy can potentially play a part, Dragicevic added that BetBuddy would be working with the Playtech compliance, business intelligence, and game development teams to further the aim of raising standards in responsible gambling.
Given the greater focus of regulators around the world on promoting safer gambling environments, the BetBuddy acquisition is a significant move, particularly in the UK.
'Where harm minimisation is concerned, the rules of the game have now changed,' says Waugh at Regulus of the triennial review. 'The public relations approach no longer seems to cut any ice with a Government that is looking to the industry to provide meaningful solutions to a lengthening list of problems,' he adds.
'Here, the industry has been given a golden opportunity to be on the front foot and demonstrate the efficacy of self-regulation. However, the opportunity is likely to be short lived and the scrutiny both intense and increasingly well informed. Now is not the time to spin, blame-shift or rely on other stakeholders: somewhat reducing the standard playbook.'
Responsible gambling has certainly moved up the agenda suggests Canaccord Genuity analyst Simon Davies who points out that the three-month added consultation period undoubtedly meant 'the can was effectively kicked further down the road.' But he adds that with online gaming much more clearly in the sights of the government, it also looks like it has become a much bigger can.'
Visit GamCrowd.com for news covering the global gambling industry.
The long-awaited triennial review is set to be released later this week, detailing reforms on the controversial form of betting that has caused quite the storm of concern amongst MPs and government officials.FOBT's have long-been regarded as the lifeblood of UK bookmakers, however, this pivotal decision will dictate what the landscape will look like in the future for the highstreet industry.
The Department for Digital, Culture, Media and Sport (DCMS) is about unveil a clampdown on the ‘crack cocaine of gambling', fixed-odd betting terminals. The set changes could have a massive impact on UK bookmakers, potentially slashing hundreds of millions of pounds from their profits.
Currently, the machines allow for punters to bet £100 per spin on the terminals, which is equal to £300 a minute. The government is set to recommend reducing this stake to £50, £20 or £2 a play.
According to figures posted by the Gambling Commission, £1.7bn was spent on FOBTs between October 2014 and September 2015, accounting for 56% of betting shops' profits.
Triennial Review Gambling Uk Usa
If the government goes ahead with the minimum bet of £2, it is likely that bookmakers will campaign hard against this ruling, arguing that such a cut would be the industry's ruin.
If the maximum stake is reduced to £2, half of the 9,000 betting shops in the UK becoming unprofitable and risk closure by 2020.
The future of FOBTs is somewhat unclear, with bookmakers in the UK anticipating significant financial impacts, which could potentially spark a wave of consolidation.
Last month, John Whittingdale, the former culture secretary, spoke at the annual meeting of the Association of British Bookmakers, saying: 'I can't say I would be surprised if there are quite radical measures produced when we come to it and I think you should brace yourself.'
The government's report is due for publication early this week and will then be followed up by a 12-week consultation that will cement the final decision.
Chief Executive at Ladbrokes Coral, Jim Mullen spoke to The Financial Times on the impending results, saying: 'If [the government] follows the evidence, they will see that stakes do not affect problem gambling behaviour.
'If they do not follow that evidence, it will have an impact on tax receipts at the Treasury to the tune of £250m per annum. There will be an impact on jobs from the sector, with close to 20,000 [positions at betting shops being cut by 2020]. Then there will be an impact on horseracing to the tune of £200m per year.'
Last month, The Financial Times also reported that Breon Corcoran, Chief Executive of Paddy Power Betfair wrote in a letter to Tracey Crouch, Minister at the DCMS, the issue has become 'so toxic' that action is critical to 'address societal concerns'.
'Whilst we are not aware of any evidence which links stake size to problem gambling, we are acutely aware of the increasing reputational damage to the gambling industry that has followed lack of progress in this area,' Corcoran stated.
'We now believe that the issue has become so toxic that only a substantial reduction in FOBT stake limits to £10 or less will address societal concerns.
'I am confident we could operate our retail business successfully and profitability under such circumstances. Other well-run operators should be able to do the same.'
Gambling Consultant, Steve Donoughue spoke to Gambling Insider about the impending results, stating: 'The imminent publication of the Triennial Review should be seen as the beginning of the end of the war on Fixed Odds Betting Terminals and the end of the beginning of the war on online gambling.
'By war, I mean the active campaigning of commercially motivated anti-gambling groups happy to use fake news, a media happy to construct moral panics without providing balanced reporting, an increasingly political regulator happy to tighten the screws at any hint of moral panic and a Parliament, full of emasculated legislators willing to jump on any bandwagon just to show they care regardless of the lack of any evidence to the contrary.
Triennial Review Gambling Uk Books
'Combine this with our supposed allies, competing sectors of the gambling, willing to turn ‘Quisling' at any moment and the forecast for British gambling over the next five years is not good, rout or surrender a possibility. I would bet money, if I'm still allowed to, that taxes will rise and regulations will become suffocating if immediate action isn't taken.
Triennial Review Gambling Uk Sites
Triennial Review Gambling Uk Supreme Court
'The trouble is, as we learnt from the First World War, is when your generals are in the safety of their chateaus far from the battlefront, Malta, Gibraltar and the Isle of Man, it is difficult for them to comprehend the strength of opposition their troops are up against and how weak their defences are. Put on your tin hat and write that letter home, be ready for the reactionary Blitzkrieg.