UKGC Publishes Operator Data Report
The UK’s Gambling Commission has published a report detailing the impact of the coronavirus pandemic on gambling behaviors. The publication, which covers the period between March 2020 and December 2021, advises operators to remain vigilant as restrictions are lifted. It has also updated its guidance to operators on fair terms and conditions.
Announcing its latest published figures, the Gambling Commission called on operators to keep following the strengthened guidance issued during the first lockdown. ©Alexander Suhorucov/Pexels
New Figures
The UK’s gambling regulator has released its latest report detailing the impact of COVID-19 and the easing of lockdown measures on gambling behaviors. The data covers the period between March 2020 and December 2021, and includes online and in-person gambling. The gambling watchdog has committed to publishing this data on a quarterly basis.
Announcing the new figures, the Gambling Commission cautioned that some care should be taken when making any year-on-year comparisons. This is because of differing operating circumstances. The data also includes previously published data which has been corrected, after some figures it was given by William Hill were found to be inaccurate.
A number of trends are visible in the data. Figures for December 2021 showed online total gross gambling yield to be just below £421 million. That took GGY for the third quarter to £1.2 billion, a 6% drop on the second quarter. However, the overall number of bets and spins grew by 4% from the second quarter to the third quarter, and the number of active accounts stayed steady.
Regarding slots, GGY grew by 1% to £568 million between the second and third quarters. The number of spins increased by 3% to 18.2 billion. The number of active players saw the sharpest rise, gaining 5% to 9.8 million.
On average, online slot sessions also got longer. The number of online slot sessions lasting more than an hour grew by 8% to more than 8.1 million from the second quarter to the third quarter. However, the average session lasted 19 minutes, and just 7% of sessions went over the hour.
The newly published data also showed that GGY for high-street betting operators fell by 1% to £533 million between the second and third quarters. Conversely, in the same period the number of total bets and spins went up to 3.3 billion.
Operators Advised to be Vigilant
Publishing the new and updated data, the Commission acknowledged that the UK is now entering a different phase, as the public adjusts to life with fewer restrictions. It cautioned operators to remain extra vigilant, as consumers are still being impacted by the pandemic and the wider economy in various ways.
It noted that some people still feel vulnerable because of the pandemic and its impact on life over the last two years. Some are still facing personal difficulties, while others are grappling with uncertain financial circumstances. While restrictions are being lifted, the negative impact of the pandemic is still being felt and is still affecting the gambling behaviors of many.
The Gambling Commission reiterated that it expects operators keep following the strengthened guidance issued during the first lockdown. For instance, attention should be paid to consumers that increase the number of games that they play and spend increasing amounts of money. It is key that operators interact directly with their customers when triggers are reached.
The regulator also stated that operators must not exploit the current situation for marketing purposes, particularly while consumers adjust to the “new normal”. They should be particularly cautious when attempting to cross-sell products, when on-boarding new customers and when making decisions over affordability checks.
Closing the report, the watchdog explained the ways in which it continues to track market related risk. It does this by assessing the impact of strengthened guidance to operators, monitoring key data and taking action to protect consumers where risks are identified. It will continue to take steps to permanently strengthen regulatory requirements and to monitor operators closely.
Fairer Terms and Practices
In a separate statement, the Commission also announced that it has updated operator guidance on fair and transparent terms and practices. The changes come in response to evidence showing that a number of operators have used terms that are potentially unfair. In some instances, these terms have given operators undue discretion on how they may be applied.
The regulator noted various examples of the kinds of terms it wants to crack down. It found some terms enabled licensees to confiscate customers’ un-staked deposits. Other terms at fault regarded the treatment of customer funds where a licensee has cause to suspect irregular or fraudulent play.
The changes will also see an end to online games promotions which have terms that allow the licensee to void real money winnings when a customer has inadvertently broken staking rules. Terms that unfairly allow operators to reduce potential winnings on open bets have also been targeted.
The regulator also said that it is aware that many terms and conditions are difficult to understand, and some welcome bonus offers and wagering requirements may encourage excessive play. It has instructed license holders to review their terms and conditions to make sure that they are compliant with customer protection laws, as well as the Commission’s newly updated guidance.
Additionally, licensees are required to be able to produce evidence on request showing that their terms are fair and transparent. Operators are advised to review their offers, particularly welcome offers and those with wagering requirements. These must be socially responsible and should not encourage excessive play.
The changes come ahead of the much-awaited results of the government’s Gambling Act review. It is in the process of updating the UK’s gambling laws, and some major changes are expected. These could include changes to football sponsorships, gambling ads on TV and online casino VIP schemes.
