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The UK Government has proposed major changes to the online gambling industry, from stake limits to tougher affordability checks and the setting up of a new ombudsman... But what could this mean for Jersey punters?
The recent White Paper, 'High Stakes: Gambling Reform for the Digital Age' was published late last month following multiple delays.
The paper, first commissioned in 2020, outlines a series of policy proposals designed to counter the dangers associated with online gambling.
Chief among the proposals were the implementation of 'financial risk checks' for gamblers seeing a certain loss each month, the establishment of an independent gambling ombudsman, the imposition of a 'levy' on licensed establishments to combat gambling addiction, and new online stake limits.
Dr Jason Lane, CEO of the Jersey Gambling Commission, told Express he was broadly positive about the policies proposed in white paper, and its potential impact on Jersey players who may choose to gamble on UK sites.
"Vicariously, it will be good for Jersey punters... Anything that gives more responsibility to the player, that gives them the chance to take control of what they are doing is a good thing. It's giving them greater powers of control over their own levels of gambling."
Pictured: Dr Jason Lane, CEO of the Jersey Gambling Commission.
In particular, he was positive about the potential implementation of a new ombudsman, an independent third-party appointed to provide a check on government activity in the interests of the citizen.
He said: "It is a good thing to have an independent, third-party... There should be a facility for customers who have a legitimate complaint that is not taken seriously to have that complaint redressed."
While he considered that the cost of a dedicated gambling ombudsman in Jersey might be too great to justify its existence, he suggested that a different ombudsman could accept responsibly for gambling, or that the UK ombudsman might take responsibility for Jersey.
He noted, however, that the number of complaints is currently "relatively low".
One of the major proposals in the report was that operators will be required to impose 'financial checks' on players seeing a £125 net loss per month or £500 net loss per year. This threshold will be halved for 18- to 24-year-olds. Such checks will look for 'risk factors' such as Country Court judgments, equivalent to Petty Debts Court judgments in Jersey.
Pictured: The white paper proposed 'financial risk checks' for people who see a £125 net loss per month.
If risk are identified, operators will be required to respond "appropriately", to be judged on a case by case basis.
Dr Lane argued that, should Jersey follow suit, it would likely have a limited impact on remote gambling operators licensed in Jersey. Of these, there are only four. One of which, Mohawk Online, is owned by the Mohawk Council of the province of Kahnawake and only operates in Canada.
Another, Annexio, operates services that allow people to bet on the outcome of lotteries. According to Dr Lane, neither of these companies are likely to be affected by the proposed UK legislation, should it in turn be implemented in Jersey.
He said: "Both models are generally for people who will spend small or moderate amounts of money. Spending that is at a low level but repetitive... Someone who spends a lot of money will be flagged anyway."
Dr Lane described the proposed "two-tier" style of regulation – that of applying different regulation for those between the ages of 18-24 and those 25 or older – was "an interesting approach".
He said: "It's not one that's been tried in other regulated sector – for example, alcohol. There is a lot of research which talks about higher levels of participation in those age groups.
"As a concept, it's a good thing. I look forward to seeing how they are going to implement it."
While Jersey is likely to follow or feel the effects of many of the measures proposed, Dr Lane also suggested the island was ahead to some extent when it comes to support.
With regards to the proposed levy on to support victims of problem gambling, "the UK is catching up with us".
As a condition of holding a gambling licence in Jersey, licensees must pay a levy which goes into the 'Social Responsibility Fund'.
Pictured: Licensees in Jersey pay into a 'Social Responsibility Fund', which is used to support vulnerable people suffering from problem gambling.
This fund is in turn used to support vulnerable people suffering from addiction and other forms of harm associated with gambling.
"There will still always be people who gamble too much. The whole idea is early intervention," Dr Lane said.
"The health system can help, but clearly it's better for everyone if we can stop them getting there in the first place."
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