The UK Gambling Commission (UKGC) has opened consultations on deposit limits following the dialogue on the issue in February.
As part of the British government’s Gambling Review White Paper, it was outlined that operators would need to ensure customers are setting appropriate controls on their gambling accounts.
This stipulation to monitor online spending has been introduced by the Commission to the Licence Conditions and Codes of Practice (LCCP) guidelines.
The changes are designed to protect customers and give control on how much they spend on a platform on a user-led basis.
As part of the measure, the UKGC is giving autonomy to gambling operators to devise their own procedures as long as they meet the requirements.
All systems will be mandated to ensure new customers are setting a fixed amount before making the first credit transfer into their accounts.
With the changes due to be applied from October 31 this year, existing customers will also be given the option to set limits, as well as review periods and reminders being sent to users.
How to define and frame the guidance
The British regulator has also expressed the need for clarity as it believes operators introducing ‘net deposit limits’ have caused confusion.
The UKGC outlined the example of a customer setting a £20 weekly deposit and then withdrawing £10, which actually increases the same limit to £30. This has led to a series of complaints from users, reporting issues with net limits to the commission.
As part of the new consultation, the UKGC is seeking feedback on how deposit limits should be defined and framed.
The communication read: (From) responses to the consultation for these changes (the initial consultation), engagement with industry and consumer contacts, it has become clear that some operators are changing how they interpret financial limits, in particular deposit limits.”
“In our view, financial limits termed ‘net’ deposit limits would not meet the definition of ‘deposit limits’ proposed in our initial consultation.
It continued, “Whilst we are of the view that ‘net’ deposit limits would not meet the definition of ‘deposit limits’ proposed in the initial consultation, we are choosing to consult further on this issue to ensure clarity, rather than implement the initial consultation proposals and pursue this as a compliance matter.”
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