22Sep

DCMS publishes correction to online slots consultation

22nd September 2023 Adam Russell 197

On 20 September 2023, the Department for Culture, Media and Sport (“DCMS”) published a correction note in respect of its open consultation on the imposition of a maximum stake limit for online slots games.

Correction note

DCMS have made a correction to Chapter 5 of the original consultation document, within which it was incorrectly reported that, according to the Public Health England Gambling-related harms evidence review, problem gambling rates are highest in the 16 to 24 age group (at 1.5%). However, 1.5% is in fact the problem gambling rate for men in that age group, rather than all respondents. In actuality, the rate for all respondents in the 16 to 24 age group is 0.8%. According to the Health Survey for England 2018, the problem gambling rate in the 16 to 24 age category is 1.0% – which was the highest of any age group.

The timing of this correction is interesting, particularly given the open letter published by the Gambling Commission’s CEO, Andrew Rhodes, in August 2023, in which Mr Rhodes raised concerns about the misuse of gambling statistics. The accurate use of data, it seems, is becoming increasingly important for all stakeholders.

Extension to deadline for submission of responses

The original deadline for submission was 20 September 2023 at 11:55pm. In view of the correction made to Chapter 5, DCMS have extended the original deadline by two weeks, to 4 October 2023 at 11:55am. This is to “give respondents time to consider the correction and respond on this basis”.

Next steps

DCMS have advised that any respondents who wish to resubmit should email [email protected] to do so.

Please get in touch with us if you would like to discuss this matter further or require our assistance preparing a response.

31Mar

Gambling Commission Consultation Response on Online Slots Game Design and Reverse Withdrawals

31st March 2021 Lucy Paterson 515

In July 2020, we blogged about the Gambling Commission’s consultation on online slots game design and reverse withdrawals, which proposed several changes aimed at reducing gambling-related harm caused by online slots games by reducing the intensity of slots play. The consultation proposed amending the Gambling Commission’s Remote gambling and software technical standards (“RTS”) to introduce new controls on online slots and to remove operators’ ability to reverse customer withdrawal requests.

The consultation closed on 3 September 2020, and on 2 February 2021 the Gambling Commission published its consultation response, announcing the new measures to be introduced in the updated RTS. The new provisions, which come into force on 31 October 2021, are clearly marked in red within the updated RTS, which are now available online.

Neil McArthur, now former Chief Executive of the Gambling Commission, said:

“This is another important step in making gambling safer and where the evidence shows that there are other opportunities to do that, we are determined to take them.”

The Gambling Commission, as expected, has proceeded with almost all of the proposed changes set out in the consultation document. We set out below the changes to the RTS and the Gambling Commission’s rationale for their introduction.

Display of elapsed time and net position

Expenditure and time spent gambling have been identified as the most relevant data points in minimising the risk of gambling related harm for consumers. From 31 October 2021, licensees providing slots will be required to permanently display consumers’ net position and time spent during slots gaming sessions on the screen. For the purposes of this new RTS, a “gaming session” begins when the game is opened or once play commences.

Display of elapsed time:

RTS requirement 13C

The elapsed time should be displayed for the duration of the gaming session.

RTS implementation guidance 13C

Time displayed should begin either when the game is opened or once play commences
Elapsed time should be displayed in seconds, minutes and hours

In relation to display of net position:

RTS requirement 2E:

All gaming sessions must clearly display the net position, in the currency of their account or product (e.g. pounds sterling, dollar, Euro) since the session started.

RTS implementation guidance 2E:

Net position is defined as the total of all winnings minus the sum of all losses since the start of the session.

Prohibiting auto-play functionality for online slots

The Gambling Commission’s proposal to prohibit auto-play functionality received low rates of support from all consultation respondent categories. Concerns raised ranged from the evidential basis for banning auto-play, to suggestions that auto-play could be used as a way to control gambling expenditure, and that removing it may negatively affect access to play for those with disabilities or other physical conditions. Given the views expressed, the Gambling Commission carried out further research (set out in Annex 2 of its consultation response), which, it states, supported its concerns regarding the potential intensity impact of auto-play. In our view, the Gambling Commission’s further research was very limited in scope. The sample size, which the Gambling Commission considered to be a “sizeable base”, was a mere 190 adults (from 358 online slots players) who had indicated they had used auto-play.

The Gambling Commission is therefore introducing a new RTS provision which will prohibit auto-play for slots from 31 October 2021.

RTS requirement 8C:

The gambling system must require a customer to commit to each game cycle individually. Providing auto-play for slots is not permitted.

Prohibiting reverse withdrawals

Reverse withdrawals allow customers to change their mind about withdrawing funds from their account by cancelling a withdrawal before the transfer to their bank or wallet is completed. In its guidance to remote operators issued on 12 May 2020 in the height of the Covid-19 pandemic, the Gambling Commission advised that remote operators should “prevent reverse withdrawal options for customers until further notice”. The changes to the RTS mean that this temporary ban on reverse withdrawals will be permanent from 31 October 2020. Importantly, the prohibition on reverse withdrawals will apply to all remote operators, and not just remote operators offering slots games.

RTS requirement 14B:

Consumers must not be given the option to cancel their withdrawal request.

RTS implementation guidance 14B:

a. Once a customer has made a request to withdraw funds, they should not be given the option to deposit using these funds. Operators should make the process to withdraw funds as frictionless as possible.

Prohibiting multiple slot games

The Gambling Commission consulted on this proposal due to concerns regarding the introduction of functionality deliberately designed to encourage play on multiple slots simultaneously via a split screen. The new RTS requirement will prohibit operator-led functionality specifically designed to facilitate such play, but will not go as far as proposed in the consultation in requiring licensees to ensure that customers can only play one slot game at a time across multiple tabs, browsers, applications or devices, on the basis that this would be very complex to implement (though the Gambling Commission is continuing to explore this as part of its Single Customer View project).

RTS requirement 14C:

The gambling system must prevent multiple slots games from being played by a single account at the same time.

RTS implementation guidance 14C:

a. Operators are not permitted to offer functionality designed to allow players to play multiple slots at the same time. This includes, but is not limited to, split screen or multi-screen functionality.

b. Combining multiple slots titles in a way which facilitates simultaneous play is not permitted.

Introducing speed of play limits

The Gambling Commission is introducing a minimum game cycle of 2.5 seconds for online slots. The new provision also applies to any game played with funds made available to a customer in lieu of a stake, such as bonus funds.

RTS requirement 14D:

It must be a minimum of 2.5 seconds from the time a game is started until a player can commence the next game cycle. It must always be necessary to release and then depress the ‘start button’ or take equivalent action to commence a game cycle.

RTS implementation guidance 14D:

a. A game cycle starts when a player depresses the ‘start button’ or takes equivalent action to initiate the game and ends when all money or money’s worth staked or won during the game has been either lost or delivered to, or made available for collection by the player and the start button or equivalent becomes available to initiate the next game.

b. A game cycle starts when a player depresses the ‘start button’ or takes equivalent action to initiate the game and ends when all money or money’s worth staked or won during the game has been either lost or delivered to, or made available for collection by the player and the start button or equivalent becomes available to initiate the next game.

Prohibiting player-led ‘spin stop’ features

The Gambling Commission is introducing the proposed requirement to prohibit features that speed up play or give the illusion of control such as turbo mode, quick spin and slam stop. Features that allow customers to skip the animation that plays after the result is communicated are still permissible, as are “genuine” choice elements of play such as picking which box to open, or the number of steps to progress in a feature and/or bonus round.

RTS requirement 14E:

The gambling system must not permit a customer to reduce the time until the result is presented.

RTS implementation guidance 14E:

a. Features such as turbo, quick spin, slam stop are not permitted. This is not intended to be an exhaustive list but to illustrate the types of features the requirement is referring to.

b. This applies to all remote slots, regardless of game cycle speed.

c. This requirement does not apply to bonus/feature games where an additional stake is not wagered.

Prohibiting effects that give the illusion of “false wins”

The Gambling Commission’s consultation set out its concerns about the fairness of celebratory effects and the psychological impact that this could have by inducing a “hot state” in a customer, and proposed prohibiting such effects where the return is less than or equal to the amount staked. Despite concerns from many licensees that this would require redesign, redevelopment, internal and independent testing, the new RTS provisions will prohibit such effects in the circumstances set out in the consultation.

RTS requirement 14F:

The gambling system must not celebrate a return which is less than or equal to the total amount staked.

RTS implementation guidance 14F:

a. By ‘celebrate’ we mean the use of auditory or visual effects that are associated with a win are not permitted for returns which are less than or equal to last total amount staked.

b. The following items provide guidelines for reasonable steps to inform the customer of the result of their game cycle:

Display of total amount awarded.

Winning lines displayed for a short period of time that will be considered sufficient to inform the customer of the result. This implementation should not override any of the display requirements (as set out in RTS 7E).

Brief sound to indicate the result of the game and transfer to player balance. The sound should be distinguishable to that utilised with a win above total stake.

The suite of measures set out above must be implemented by licensees by 31 October 2020, although members of the Betting and Gaming Council (“BGC”), or supplying BGC members, will find that implementing the BGC’s Code of Conduct, they are one step ahead and will already have introduced some of the Gambling Commission’s new measures, including slowing down spin speeds and banning certain gaming features such as turbo play and multi-slot play.

Importantly, those licensees required to implement the new measures should bear in mind that they must satisfy themselves that they are offering games that are compliant. Where they are not sure, any existing game will require independent retesting by a Gambling Commission-approved testing house. Given that demand on external testing houses is likely to be high as licensees surge to implement the new measures, we would urge that licensees review their games now with a view to ensuring that testing is complete and games are updated in time for 31 October 2021 deadline.

If you would like any advice on implementing the Gambling Commission’s new RTS, please get in touch with us.

10Jul

Gambling Commission Consultation on Online Slots Game Design and Reverse Withdrawals

10th July 2020 Bahar Alaeddini 380

On 9 July 2020, the Gambling Commission announced a consultation on online slots game design and reverse withdrawals. The former follows the work of the Safer Product Working Group, which we wrote about in our blog on 2 April 2020, and the draft Betting and Gaming Council industry code, which is due to be published in September 2020.

In April 2020, the industry and Safer Product Working Group agreed to:

A minimum spin speed of 2.5 seconds on all slots.
Removal of game features which may encourage intensive play such as slam stops and turbo buttons.
Removal of split-screen slots which have been associated with potential loss of control.
A more detailed work plan which will include in-game messaging and the creation of a Betting and Gaming Council Testing Lab to investigate other game features.
Publication of the final industry code in September 2020.

Reason for the consultation

In its introduction to the consultation, the Gambling Commission explains:

“Our interest in online slots is because it is the largest online gambling product by Gross Gambling Yield (GGY) – played by relatively few but with a high average spend. Structurally it has a number of features which can combine to significantly increase intensity of play. This means it poses a relatively high risk, reflected in its associated problem and moderate-risk gambling rates.”

Slots are the largest online gambling product in Great Britain by GGY. 1.2% of adults participate in online slots and GGY from online slots has grown by approximately 50% since November 2014. The Gambling Commission believes “this implies a sharp increase in average spend per consumer”.

In a section titled Why are we consulting the Gambling Commission explains the industry proposals are insufficient and the “consultation goes further to keep slots players safe in a number of other additional areas”. It goes on to add that “the strength in the proposals will come from effective compliance by operators… the industry can expect what has described as “relentless escalation” to continue when see consumers not being protected from harm.”

The Gambling Commission is particularly concerned about the accelerating intensity of slot games which aim to increase the time and spend of players. The stated aim of the consultation is to make play of online slots safer by adopting an industry-wide and consistent approach, not just an industry code for Betting and Gaming Council members, and going further by implementing additional measures above the draft industry code.

It acknowledges these are not the only ways to improve player protection and invites views on other aspects of game design to consider for future changes. It refers to its interim Experts by Experience Group, which has suggested stake levels and different product labels to help customers understand potential risk better. The Gambling Commission’s Digital Advisory Panel highlighted the need for friction to reduce the likelihood of players placing impulsive bets.

New controls aimed at reducing potential harm of online slots

The consultation proposes to amend the Remote gambling and software technical standards (RTS) as follows:

Insert a high-level definition of slots: “casino games of a reel-based type (includes games that have non-traditional reels)”.
Add a new requirement RTS 14C: “The gambling system must prevent multiple slots games from being played by a single account at the same time.”
Add a new requirement RTS 14D: “It must be a minimum of 2.5 seconds from the time a game is started until a player can commence the next game cycle. It must always be necessary to release and then depress the ‘start button’ or take equivalent action to commence a game cycle.”
Add a new requirement RTS 14E: “The gambling system must not permit a customer to reduce the time until the result is presented.”
Add a new requirement RTS 8C: “The gambling system must require a customer to commit to each game cycle individually. Providing autoplay for slots is not permitted.”
Add a new requirement RTS 14F: “The gambling system must not celebrate a return which is less than or equal to the total amount staked.”
Add a new requirement RTS 2E: “All gaming sessions must clearly display the net position, in the currency of their account or product (e.g. pounds sterling, dollar, Euro) since the session started.”

Testing

Licensees must satisfy themselves that they are offering compliant games. Where they are not sure, any existing game will require third party retesting.

All new games published after the implementation date for these new requirements will need to be tested otherwise, they will need to be removed until retesting has been completed.

Although slots are casino games (and therefore not separately licensed), the Gambling Commission plans to stipulate testing reports to declare whether the game is identified as slots.

Reverse withdrawals

On 14 May 2020 we wrote about the Gambling Commission’s new “additional formal guidance” for online operators in response to “evidence that shows some gamblers may be at greater risk of harm during lockdown”. This included a prohibition on offering reverse withdrawals until further notice.

At the time, we questioned the reliability of the data used by the Gambling Commission because it showed a decrease in reverse withdrawals. It was clear to us that this measure was not based on the data published by the Gambling Commission, and we questioned whether it was necessary and proportionate. The Gambling Commission, supported by research, already considered reverse withdrawals to be a flag for potential gambling harms; however, action to tackle this through an industry consultation would have been more appropriate than a strict measure introduced under the guise of guidance. The Gambling Commission has now issued the consultation to make the change permanent, but without the evidence to support it.

This consultation will make it a permanent prohibition by adding a new requirement RTS 14B: “Consumers must not be given the option to cancel their withdrawal request.” Operators will be required to make this withdrawal process as “frictionless as possible”.

Respond to the consultation

The consultation closes on 3 September 2020.