28Nov

New Industry Code for Responsible Gambling (7th edition) comes into force this week

28th November 2023 Ting Fung 189

The seventh edition of the Industry Group for Responsible Gambling Code for Socially Responsible Advertising (the “IGRG Code”) was published by the Betting and Gaming Council on the 5 September 2023 and will come into force on 1 December 2023.

Pursuant to ordinary code provision 5.1.8, all licensees are required to follow the IGRG Code.

The IGRG Code has been strengthened following government’s indication in the White Paper to:

“take existing commitments in the industry code further, and use the full potential of available advertising technology to target all online advertising away from children and vulnerable people and those showing indicators of harm.”

What’s new?

The IGRG Code, which was last updated in October 2020, has been amended as follows:

Extension of the safer gambling messaging requirement to 20% of advertising space across online and broadcast media (previously, this commitment only applied to television and radio).
Extension of the 25+ rule to all digital media platforms, including those which operate age verification processes.

You can download a copy of the IGRG Code from the BGC’s website.

24Aug

White Paper Series: Time to think – Gambling Commission consultation on land-based age verification measures

24th August 2023 Chris Biggs 207

On 26 July 2023, the Gambling Commission opened its first consultation (the “Consultation”) following the White Paper. This included proposals to strengthen age verification in land-based premises, which we consider in this blog.

In recent White Paper Series blogs, we discussed other proposals in the Consultation including changes to game design, personal management licences and direct marketing. We strongly encourage the industry to respond to the Consultation.

Background

Test purchasing, the hiring of seemingly underage customers to attempt to buy or participate in age-restricted items or services, is a well-known measurement tool for compliance in the land-based sector. It has been a requirement since 2015 for most non-remote licensees to ensure their policies and procedures designed to prevent underage gambling are effective by undertaking test purchasing. The requirement (as set out under social responsibility code provision (“SRCP”) 3.2) encompasses all casinos, betting premises, adult gaming centres (“AGCs”), licensed family entertainment centres (“FECs”) and bingo premises that fall within fee category C or higher. In other words, smaller operators (in fee category A or B) are currently exempt.

The Government was clear in the White Paper that it was concerned about poor test purchasing pass rates for some gambling premises. Noting the poor test purchasing results for on-course bookmakers and alcohol licensed premises in particular, the Government emphasised:

“We challenge these industries to take further measures to urgently improve age verification measures, including by obtaining commercial verification of increased pass rates. We will continue to monitor industry’s progress on this issue and will legislate to make provisions within the Gambling Commission’s code of practice for alcohol licensed premises binding when Parliamentary time allows.”

The Gambling Commission’s most recent comparative data on the test purchasing performance of licensed gambling venues highlights the following pass rates:

Casino: 98%
Betting: 87%
Bingo: 83%
AGCs: 80%

Whilst these pass rates compare well to pass rates in the liquor industry, the exemption for smaller operators leads to “an incomplete picture of risk from underage gambling in those premises.” To “strengthen age verification testing and assurance in premises”, the Consultation proposes to extend AV requirements to small operators so that it applies to all licensees, which is very much supported by Government.

Consultation proposals

Issue 1: Test purchasing by all licensees

The Gambling Commission acknowledges that the gambling sector is performing well at testing purchasing as a whole, but notes that “he risks to children who play underage do not differ depending on the size of the licensee.”

Due to the exemption for licensees in fee categories A and B, approximately 20% of premises are not covered by test purchasing requirements (although the Gambling Commission notes that some operators in these fee categories will participate in test purchasing through trade body membership). The Gambling Commission states that less than 20% of category A licensees and less than 50% of category B licensees had submitted test purchasing results by the requested deadline for 2022-23.

The Gambling Commission considers the “relatively low” cost of testing (can be well under £50) is a reasonable expense in a sector where licensees’ products are age restricted. Therefore, and with the above data in mind, the Gambling Commission is spurred to rectify the “‘gap’ in this picture of risk” and remove the test purchasing exemption within the LCCP for the non-remote licensees in fee categories A and B.

Issue 2: Replacing Think 21 with Think 25 as good practice for non-remote licensees

In addition to strengthening the test purchasing requirements, the Gambling Commission is considering updating the ordinary code provisions (“OCP”) for all non-remote casino, AGC, bingo and FEC and betting licensees to replace Think 21 with Think 25. This would reflect the Challenge 25 retailing strategy introduced by the Retail of Alcohol Standards Group to encourage anyone who is over the age of 18 but looks under 25 to carry acceptable ID if they wish to purchase alcohol. The Gambling Commission previously consulted on replacing Think 21 with Think 25 in 2015, noting the retention of Think 21 was dependent on the industry “continuing to deliver improvements in their ability prevent access to gambling by children and young persons…”

Primarily, the Gambling Commission’s current concerns stem from data indicating that 18% of AGCs and 16% of bingo premises did not challenge age verification test purchasers at any point (although it should be noted the Gambling Commission does not point directly to a specific dataset or figure in the Consultation). The Consultation also acknowledges calls from both industry and campaign groups to introduce Think 25 as standard for all gambling in premises, noting the position was shared by the Advisory Board for Safer Gambling in its 2018 report and echoed by the Government in the White Paper.

Issue 3: Improving the effectiveness of age verification in premises that are not directly supervised

Lastly, the Gambling Commission is seeking industry views and evidence on how licensees ensure their age verification procedures and controls are effective in premises that may not be directly supervised, such as AGCs in service stations.

Responding to the Consultation

The Consultation is open for 12 weeks, until 18 October 2023. Responses can be submitted through the Gambling Commission’s online survey, or sent by post to the Policy Team at the following address: Gambling Commission, 4th Floor, Victoria Square House, Birmingham, B2 4BP. Additionally, the Gambling Commission remains open to direct engagement with stakeholders during this period through existing meetings, networks and fora.

We strongly encourage all licensees and stakeholders to consider the impact of the Gambling Commission’s proposals at Issues 1 and 2, and to make evidence-based submissions for all three issues.

Please get in touch with us if you would like assistance with preparing a response to the Consultation or the DCMS consultations.

24Apr

Betting and Gaming Council Announces Safer Gambling Strategy

24th April 2020 Jessica Wilson 382

Last month the industry association, the Betting and Gaming Council, announced a new 10-point safer gambling action plan for its members in response to the COVID-19 pandemic. The action plan, which came into force on 27 March 2020, aims to strengthen consumer protection and build upon existing safer gambling measures implemented by its members.

Whilst overall gambling has dramatically declined due to cancellation of sporting events and the closure of betting shops and casinos, the Government’s lockdown and social-distancing guidelines mean more people are spending time in their homes. Customers may now be gambling online more frequently and, during this difficult time, could be at their most vulnerable and a greater risk of problem gambling. The Betting and Gaming Council’s action plan consists of 10 pledges which set out the standard expected of operators to increase their safer gambling measures and to protect customers during the crisis.

The 10 pledges are as follows:

Members will increase safer gambling messaging across all sites, apps and channels including inbox messaging to all existing and new customers reminding them of the safer gambling tools available.
Members will implement heightened monitoring and data collection in the knowledge that customers are required to abide by social distancing measures. Any material change in customer play patterns, including any increase in time and spend, beyond normal patterns before the crisis, indicates potential markers of harm and operators must step up interventions.
Members, operating heightened monitoring, shall actively promote deposit limits and send a deposit limit message with link to the tool to any player exhibiting abnormal patterns of play that are a marker of harm.
Members shall commit to an immediate and ongoing review of their marketing and advertising – in volume, content and targeting – and will act to ensure it is both appropriate and responsible given the increased risk.
Members will report to the BGC instances of illegal rogue and inappropriate advertising and the BGC will report these to the regulator.
These Pledges will fully apply to all affiliates. Members will enforce a strict one-strike-and-you’re-out policy for breaches of these pledges.
Members will sign-post to Gamcare advice and the 24-hour free to call National Gambling Helpline and GamStop for self-exclusion in their safer gambling messaging, particularly where issues around anxiety or isolation are apparent from monitoring systems or customer interactions.
Members restate their commitment to maintaining the vital flow of important funding for Research, Education and Treatment (“RET”).
Members shall conduct welfare checks on employees during this crisis.
Members should play a full part in supporting the Government’s ‘National Effort’ by encouraging staff to volunteer for community service, as well as offering premises where possible for use by those supporting the effort to tackle the Coronavirus.

Commenting on the pledges, Michael Dugher, chief executive of the Betting and Gaming Council, said:

“In this time of national crisis, with so many people self-isolating and social distancing at home, it is vital that we do everything possible to ensure safer gambling and to protect potentially vulnerable or at risk people.”

Building on these pledges, and in response to a letter from the Sports Minister, members have this week committed to further safer gambling measures, as detailed in a letter from Michael Dugher to the Sports Minister in which he says:

“I can give you 100 per cent assurance that despite the severe financial pressures the industry is under at present, our members in the regulated sector are fully committed to working with you and the Government to address all concerns on safeguarding customers.”

These additional measures include:

Responding to the Sports Minister’s request for safer gambling messages to be given more prominence in all adverts across all channels. This is being treated as an immediate high priority.
Ensuring that the Gambling Commission’s recent request for data is urgently provided.
Expediting agreed changes to VIPs, advertising technology and game design.
In addition to implementing restrictions on VIP accounts for anyone under 25, members will look to bring forward age-gating on advertising technology to help prevent under 25s receiving advertising along with all other measures.

The letter also provides an assurance that Betting and Gaming Council members are “firmly committed to increasing funding for RET despite the severe financial pressures.”

The pledges and additional measures, together with the marketing code for the Virtual Grand National which took place on Saturday 4 April 2020, demonstrate the industry’s renewed commitment to safeguarding customers and raising standards. This is despite the disappointing response to the current crisis from the Gambling Commission, which we wrote about in our blogs on 25 March 2020 and 3 April 2020.

02Apr

Update on Gambling Commission Industry Working Groups

2nd April 2020 Bahar Alaeddini 379

On 2 October 2019, Neil McArthur, CEO of the Gambling Commission, delivered a speech at a CEO Breakfast Briefing in London in which he looked back at the year, talked about the challenges in the industry and three opportunities to reduce gambling harm:

opportunity 1: game and product design;
opportunity 2: inducements to gambling; and
opportunity 3: advertising technology.

We discussed these opportunities and industry working groups, formed in January 2020 in pursuit of these opportunities, in a blog post on 17 January 2020.

Yesterday, the Gambling Commission published an update on its “collaborative work” with the industry working groups, which included over 30 licensees, co-ordinated by the Betting and Gaming Council, and involved GamCare and people with lived experience of gambling harm.

Whilst “encouraged by the progress”, Neil McArthur challenged the industry to go further and deliver “real and rapid change for consumers”. He said:

“We set these challenges in order to deliver real and rapid change for consumers in key areas of risk. However, it is important these commitments are implemented as soon as possible. It should not take months to implement safeguards many would expect to be in place already…Whilst we are encouraged by industry proposals for making gambling products safer, we now call on operators to implement those proposals rapidly; but the proposals do not go far enough and we will now consider what additional measures we should impose on operators…Ultimately actions speak louder than words and any operator that does not put consumer safety first will find itself a target for enforcement action.”

Safer Products Working Group (opportunity 1: game and product design)

The industry has 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.

The Gambling Commission’s response:

“…this work must now go further and faster, in particular around using demographics and behaviours to indicate risk.”
It will issue a consultation on “priority areas” for immediate action “as soon as possible”.

Incentivisation of High Value Customers Working Group (opportunity 2: inducements to gambling)

The industry has agreed to:

Restrict and prevent under 25s from being recruited to high value customer i.e. VIP schemes.
All customers must first pass thorough checks relating to spend, safer gambling and enhanced due diligence before becoming eligible for high value customer incentives.
Reward programmes will also be required to have full audit trails detailing decision making with specified senior oversight and accountability.
Implement some measures from 14 April 2020.

The Gambling Commission’s response:

It will issue a consultation on how to makes these permanent changes as part of the LCCP.
Expectation that the industry implements its industry code “as soon as possible and considers most measures should be implemented within 3 months.”
It will monitor and support implementation of the industry’s code as an interim measure.

Safer Advertising Online Working Group (opportunity 3: advertising technology)

The industry has agreed to:

Amend the Industry Code for Socially Responsible Advertising by July 2020 to include the points below.
A common list of negative search terms (e.g. how do I self-exclude from gambling?) and suppression websites, which will help shield vulnerable groups from online gambling ads.
Better and more consistent use of customer data to ensure paid-for-ads are targeting away from vulnerable groups across social media platforms, instead of targeting for business.
Implement an approach which means that advertising is only targeted at +25 age in social media and “Pay Per Click” advertising where platform facilities permit. This will protect young people and increase confidence in the social media platforms’ own age-gating.
Age-gating YouTube channels and content.
Adopting and rolling out to all affiliates a code of conduct which will be amended and updated on a regular basis to ensure all measures undertaken by the industry will be implemented equally by affiliates.

This working group will also:

Establish a permanent cross-industry Adtech Forum.
Continue the proactive engagement with a wide range of stakeholders (including platforms).
Work with the Gambling Commission to publish and promote consumer advice, and work with online platforms and broadcasters to identify a more effective, simple and consistent approach, about blocking gambling advertising.
Commit to monitoring and evaluating all actions to ensure only effective solutions are pursued.

The Gambling Commission’s response:

“The industry has developed an appropriate set of commitments which should help further limit exposure to online gambling adverts by vulnerable groups.”
It expects industry to work collaboratively with social media platforms to identify and implement further solutions.
Operators will be “held account for these commitments” from July 2020.

Final thoughts

At the October 2019 CEO Breakfast Briefing, Neil McArthur’s final words were:

“If we work together, I am sure we can make gambling fairer and safer.”

The industry’s response to working with the Gambling Commission and investment in meeting tough timeframes should be applauded. Much work is still to be done, particularly to deliver “real and rapid change for consumers”, as the Gambling commission expects. Widespread action and engagement across the industry when the industry codes are implemented and consultations published will be paramount.