The online gambling industry is experiencing unprecedented growth globally, and The UK is no exception, where the casino industry has continued to see a significant increase in players. With increasing ease of access to the internet and technology advancements, players can now enjoy a wide range of casino games these days. This increase in new casino sites in the UK has also brought a need for tight regulations to ensure that the players are well protected and that there is fair play and responsible gambling.
In October 2015, a British man managed to win over £13 million with a bet of only £1, which was the largest single slot machine payout of that time. This win brought the industry to the forefront of many people’s attention and made many more interested in doing the same by trying their luck at online casinos. Moreover, the recent pandemic further boosted the only casino market as many people tried to find sources of entertainment while they were staying at home.
The online casino industry has experienced growth not just in the UK but globally as well. As a result, game developers have been under pressure to create new and engaging games that can keep up with the rapidly changing industry and remain relevant. Many game structures are now available that work across all devices, providing top-notch gameplay experiences. Carefully made with marketing strategies and after considering various psychological factors, these games have become addictive to some people, and this has made them susceptible to various gambling-related problems.
Undoubtedly, these problems could have further arisen if it wasn’t for the tightly regulated rules and guidelines in place. So, let’s discuss the role of regulations and how these are to be implemented for newly launched online casinos in the UK.
Governing Bodies and Authoritatively
The governing bodies and authorities play a crucial role in the online casino industry by keeping a strict framework. For example, the UK Gambling Commission is the primary gambling board that regulates the online casino industry. All officially registered and licensed casinos are categorised here. The governing site also provides newly implemented rules and the latest news related to gambling, which ensures players are aware of it. Any online casino that fails to follow the rules could see itself facing severe consequences.
Obtaining a Licence
For an online casino to be launched in the UK, they would first need to obtain a license. Any online site that is not registered would be considered illegal and could potentially face criminal charges and a permanent ban. Moreover, such unlicensed sites would also be risky for players because they don’t receive protection from government authorities regarding their personal and financial information.
In short, any newly launched casino must obtain a licence to enter this industry.
Revenue Tax
According to the latest news, the UK imposes a tax rate of 21% on the online casino industry, one of the highest tax rates worldwide. While it may seem burdensome and demoralising for new online casinos to launch, it is worth pointing out that the UK is also a popular gambling destination for companies and game developers due to its well-established market, benefiting the industry as a whole.
The high tax rate is also important as it ensures a fair contribution of revenue to the UK government. Gambling is a huge part of the culture in the UK, so it is one of the most lucrative locations in the world for online casinos to focus on.
Transparent and Fair
As discussed, a considerable percentage of the UK population likes to gamble, making it crucial for the government to ensure transparency and fairness in the online casino industry, from which they benefit.
With the industry constantly growing and various scamming sites also emerging, the government has regulated and ensured fairness among registered and licensed sites. In case of any failure to comply with the rules and regulations can result in strict actions, including heavy fines against online casino operators.
Promote Responsible Gambling
Our brains perceive near-misses during online casino games as “wins”, and this phenomenon contributes to gambling addiction in some individuals. To overcome the issue of problem gambling, the UK government has established strict rules for online casino operators to promote responsible gambling.
One of the strict regulations put in place by the UK government is a permanent ban on some key features of online slots. These bans include sounds that give the illusion of a win when the return is, in fact, equal to or below the stake, auto-play feature, and slot speeds faster than 2.5 seconds. Additionally, online casino operators are instructed to display the total winning and losing amount during the online session. These actions have been implemented since October 2021 for every existing and newly launched online casino.
Conclusion
The online casino industry is a vastly growing industry worldwide and has greatly changed the future of classic casino games. Online gambling offers players the opportunity to win at different betting prices with just one click, but it can lead to severe harm for many bettors, which is why the role of regulators is crucial.
To overcome this, The UK Government has made it mandatory for all online casinos to be licensed and regulated by governing bodies while also implementing taxes on revenues. It has taken strict makes that ensure a fair and safe gambling experience for all players. Additionally, an initiative to promote responsible gambling has also played a crucial step in overcoming gambling addiction.
