UKGC Backs off Plans for New Gambling Marketing Restrictions

Article by : Erik Gibbs Sep 3, 2024

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The UK Gambling Commission (UKGC) has decided to delay the implementation of new marketing restrictions that were initially planned for January 2025, pushing the date back to May 1, 2025. The delay follows feedback from gambling operators who raised concerns about the wording and potential impact of the new rules on their operations.

The proposed update to the Social Responsibility Code, specifically paragraph six of section 5.1.12, suggested that gambling operators might have to deny service to players until they explicitly set their marketing preferences. This requirement, as it was originally worded, caused significant confusion among operators. They interpreted the rule as meaning that even existing customers, who had previously opted in to receive marketing communications, would have to reconfirm their preferences before being allowed to gamble.

Operators were particularly worried that this requirement could disrupt their business by preventing them from engaging with customers until their preferences were confirmed. They also questioned whether existing customer preferences could be automatically transferred to meet the new standards.

In response to these concerns, the UKGC clarified that while operators could transfer customers’ existing marketing preferences, this could only be done if the preferences were explicitly opted-in for specific products and communication channels, such as email or text messages. For customers who hadn’t yet set their preferences, they would be prompted to do so upon their first login after May 1, 2025. This change aims to ensure that all marketing communications are fully consented to by the customer, aligning with the broader goals of consumer protection and responsible gambling.

The revised timeline and clarification from the UKGC come amid broader regulatory changes in the UK gambling industry. These changes include the introduction of affordability checks, set to be piloted starting this past weekend.

The pilot will require operators to flag any signs of financial vulnerability or debt among players, using both historical and live data. The goal is to protect consumers from harmful gambling practices by ensuring that operators can identify and address potential financial risks before they lead to serious issues.

Legal experts and industry stakeholders have pointed out that the new marketing restrictions could have a significant impact on operators’ revenues. The restrictions would prevent operators from using soft opt-ins, like pre-ticked boxes, and would require more explicit consent from customers. This means that operators might need to adopt new, more creative marketing strategies, such as in-app notifications, to maintain customer engagement without breaching the new regulations.