Australia has introduced a new measure banning the use of credit cards for online gambling, aiming to ensure that players only gamble with their own money. This significant change has been in the works since 2021, with Responsible Wagering Australia (RWA) and its members playing a crucial role in advocating for and developing this ban alongside the Commonwealth Government and the financial services industry.

Industry Support for the Ban

Responsible Wagering Australia CEO Kai Cantwell expressed the importance of this measure, emphasizing that it helps individuals manage their gambling more effectively. “This is an important measure to protect customers, making it easier for people to stay in control of their own gambling behaviour,” Mr. Cantwell stated. He highlighted that this ban complements the existing suite of safer gambling tools provided by RWA members.

Cantwell also pointed out the need for uniform consumer protection measures across all forms of gambling. “RWA and its members support the extension of this measure to all forms of gambling that have been exempted from the ban such as lotteries and keno. If consumer protection measures aren’t consistent across all forms of gambling, it will incentivize vulnerable Australians to move to less-regulated types of gambling, where they are more at risk of harm.”

Enhanced Consumer Protection Tools

RWA members are committed to ensuring that gambling is conducted safely and responsibly. They offer a variety of tools to help users manage their gambling activities more effectively. Many of these tools have been integrated into the National Consumer Protection Framework (NCPF) by the Commonwealth Government.

Cantwell noted the significance of the NCPF in maintaining a safe gambling environment. “The NCPF is expected to be evaluated shortly and we look forward to engaging in this process to ensure that consumer protection tools are fit-for-purpose and support a safe and sustainable regulated gambling environment,” he added.

This credit card ban marks a crucial step in protecting Australian consumers from the potential harms of gambling by preventing the use of borrowed money for such activities. It underscores the commitment of both the government and the industry to foster a safer and more regulated gambling environment.

Source: “Australia Enforces Credit Card Ban for Online Gambling”, European Gaming, June 12, 2024.

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Germany’s authority responsible for licensing and supervision of online gambling, Gluecksspiel (GGL), highlighted the extensive measures for player protection available in the country under the State Treaty on Gambling (GlüNeuRStv 2021). The regulator reminded the effective measures for player protection and the announcement came ahead of the annual nationwide day of action against gambling addiction, September 27, 2023.

As a part of the GGL’s campaign, it released detailed information regarding the efforts of licensed gambling operators in the country. Additionally, it vowed to conduct more such events and campaigns that seek to raise awareness of the potentially addictive nature of gambling.

The regulator pointed to some of the most important measures for player protection that licensed gambling operators in Germany are required to comply with. Such include a prohibition of parallel play, as well as a cross-provider deposit limit that is usually capped at €1,000 ($1,058) monthly. Those limits, GGL explained, can be personalized, allowing online gamblers to set much lower sums for daily, weekly or monthly loss or deposit limits.

Additional player protection measures under the GlüNeuRStv 2021 include restrictions for different types of gambling. For example, spins for online slots must go on for at least 5 seconds before a new spin can occur. For every hour of play, a mandatory break of 5 minutes is applied, while wagers per spin are capped at €1 ($1.06) maximum.

Prevention of Gambling Addiction Is Important

In addition to player protection, Germany’s gambling regulator is committed to preventing gambling addiction. The country’s gambling watchdog regularly communicates with different organizations such as addiction associations, and strives to improve the regulations in an effort to protect more consumers.

Benjamin Schwanke, GGL’s board member, praised the associations’ efforts toward preventing gambling harm. “We therefore welcome the annual day of action against gambling addiction, because education and prevention measures are the basis for effectively combating or avoiding gambling addiction,” he explained.

“It is important to us that the general public is informed about the legal regulations and that players can better assess which offers are illegal and which are legal, ie that they adhere to the strict rules for player protection.“

Ronald Benter, board member at the GGL

Ronald Benter, a board member with the GGL, praised the importance of informing the public about the legal measures for player protection that gambling operators in the country need to comply with. He explained that the player protection tools available for German customers can help them differentiate the legal offering from the illegal market.

The latest initiative marks the 13th annual nationwide day of action against gambling addiction organized in the country.

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40-year-old Luke Ashton, a father of two, took his own life in April 2021 while fighting his severe gambling addiction which had caused him to lose £5,000 ($6,400) during just one month. One of the gaming operators that Asthon had frequently used since 2012, Betfair, has now admitted that its protection systems have failed to identify the player as an “at-risk gambler.”

In a historic decision, Betfair has been called an “interested person” in the inquest, which is a first in the industry. The company admitted it “should have done more” to protect the vulnerable player who died on April 22, 2021, after he was “consumed” by his addiction. 

Up to 100 Bets a Day

Before losing the large amount during a single month, Ashton had made a habit out of gambling up to 100 times a day. The player preferred the operator’s Exchange platform to bet on horse and greyhound racing events that took place in the UK as well as abroad. 

Betfair describes Exchange as an option that is “generally more low risk” and also one that is used by “sophisticated and highly-skilled” players. In January 2019, Ashton was averaging 55 daily bets. 

During the remainder of the same year, according to the hearing held at the coroner’s office for Leicester and South Leicestershire, Ashton took out £18,000 ($23,000) in total loans in an attempt to clear his debts. 

His addiction peaked in March 2021, when he reached 1,229 bets. March was also the month when he made a £2,500 ($3,200) deposit in a single day.

While the family had to sell their home, Ashton didn’t manage to set himself free of his addiction and continued to frequent a number of gambling websites in the month prior to his demise.

Failing Machine-Learning Algorithm

During the second day of the hearing held earlier in the week, the Flutter-owned operator used the voice of managing director Richard Clarke to admit that their algorithm which is based on machine learning did not identify Ashton as a high-risk gambler. 

The algorithm that is used to closely track customer data is supposed to identify the behavior of players who had used the self-exclusion option from the operator’s platform for six months. 

Ashton used the same exclusion option in 2013, 2014, and 2016. Nonetheless, the algorithm was not able to deem him at high-risk and issue a permanent ban on him.

While Clarke expressed confidence in the company’s compliance with the current regulations, he added that by looking at the player’s activity in March 2021, “it does look like we should’ve done more.”

“Things Have Changed a Lot”

Betfair’s managing director also told the hearing that approximately 10,000 of their customers had placed more bets than Ashton in March 2021, which coincided with the grand opening of the horse racing season.

Since then, added Clarke, a series of changes had been put into practice. Among them, the implementation of a strict £500 ($640) monthly deposit limit for players under the age of 25, a £10 ($12.80) maximum stake limit on all slots, and a monthly net deposit limit for all returning customers at the end of a self-exclusion period, after a detailed assessment via phone.

Clarke also mentioned financial vulnerability checks via third-party reference agencies as an additional prevention measure. 

Mr Nicholls, who represented Ashton’s family during the hearing, said Betfair should have excluded the victim from their website. The inquest will be resumed on June 16.

In April, Betfair was fined for offering markets for 148 matches between 2021 and 2022 for the U21 Allsvenskan, a youth soccer league on which operators are forbidden to offer wagering. 
In May, the National Health Service in the UK revealed that, based on its Problem Gambling Severity Index scores, around 0.3% of gambling adults were labeled as problem gamblers and 2.8% of adults were found at risk to engage in problem gambling.

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Social responsibility failures and AML violations motivated the UK Gambling Commission (UKGC) to issue Videoslots a substantial £2 million ($2.53 million) fine. The penalty reflects Videoslots’ repeated misconduct and the AML’s commitment to enforcing stringent regulations and upholding responsible gambling practices. The operator acknowledged its shortcomings, vowing to implement urgent updates and bring its player protection mechanisms to the industry standard.

The Operator Ignored Repeated Warnings

According to the UKGC’s investigation, Videoslots failed in several vital areas. Between November 2021 and January 2022, a customer lost nearly half of his deposited £112,225. Signs like long gambling streaks continuing into the early hours and losses exceeding safe thresholds should have triggered several fail safes, but the operator let such behavior continue for months.

The problem case also revealed significant AML deficiencies. The operator’s systems and controls to detect and prevent money laundering activities were inadequate, as Videoslots had insufficient analysts to manage the substantial volume of data. The UKGC noted that the issues were also present with other customers, indicating an endemic problem.

AML analysts failed to properly implement all actions required by the licensee’s AML policies and procedures.

UKGC report

In 2019 Videoslots received a £1 million fine for KYC violations. According to the regulator, the company’s most recent failings directly followed multiple warnings about insufficient due diligence and AML safeguards, thus exposing customers to potential gambling harm. The £2 million penalty reflects the severity of these breaches and should provide sufficient incentive for change.

Regulator Vigilance Remains Paramount for a Safe Market

Videoslots’ UK failings mark the company’s second clash with regulators in recent months. March saw the company enter a dispute with the Dutch regulator for allegedly allowing unauthorized access to its services. The operator hotly contested the mammoth €9.9 million ($10.5 million) fine, denying all allegations.

Despite its objections in the Netherlands, Videoslots has acknowledged its UK shortcomings and committed to implementing remedial measures to rectify the identified issues. The operator recognized the importance of stricter adherence to licensing obligations, improving customer due diligence processes, and bolstering player protection mechanisms. Videoslots’ future actions will be crucial in rebuilding trust and demonstrating a genuine commitment to responsible gambling practices.

The £2 million penalty sends a clear message to operators that non-compliance will not be tolerated. The UKGC’s efficiency in pursuing regulatory breaches is commendable, as it fosters a safer gambling environment that puts player well-being at the forefront. It highlights the need for the industry as a whole to prioritize responsible gambling, robust player protections, and effective AML measures.

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Q: Are gambling companies overall getting better at protecting consumers?

What we have seen over the past few years is more investment and resources being applied to player protection. Yet we know there is still a long way to go. In 2021, we conducted a survey with YouGov, and it was clear that the public felt gambling businesses were not playing their part – only 28% of respondents agreed with the statement that gambling businesses were doing enough to play safely. The industry needs to keep using its resources to find new ways to mitigate harm.

Q: What is the one common thing that most gambling companies are guilty of not doing to protect customers?

We know that there are many ways operators can still improve their processes to prevent gambling harm from occurring. One key area we think GamCare and consumer protection there could be significant improvements made in is affordability checks – having robust processes at the point of registration that set deposit limits and are based on accurate data checks on a customer’s income. This is where operators can really make an impact in beginning to protect their customers

Q: What are GamCare’s main initiatives for the up-and-coming year?

One area we’re very concerned about is the rising cost of living and the implications this may have for people who rely on our services. To this end, we have established a new Money Guidance Service that will provide guidance to those who have been financially impacted by gambling.

The service will work with people to establish day-to-day ways to improve their finances and work closely with those impacted by someone else’s gambling, to help them understand their options. Any support that gives improved access to dedicated financial guidance in the current climate will only enhance the current treatment offer and support longer-term recovery.

We are also looking at how we can reach more people and encourage them to get help, particularly digitally. Since the pandemic, we have seen a shift in the way that people reach out to the National Gambling Helpline, with more choosing our live chat function over physically calling on the phone. We want to continue reducing the barriers for people to start their recovery journey with us and are focussing on how we can achieve that through new digital means.

Q: What is the one thing that GamCare would like to see the Gambling Commission pay more attention to?

We know that the Commission has been looking closely into the guidance around customer interaction and we welcome this focus. It’s so important that customer-facing staff feel confident in supporting their customers and know how to respond when someone is experiencing harm, including the right places to refer people to such as the National Gambling Helpline.

The guidance sets out the need for ‘hot transfers’ to support those customers who are escalated internally where gambling harms are identified, which we see as a great step. The more focus we give here, the more we can ensure people are receiving the right level of support at the right time.

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Getting the right balance between player freedom and consumer protection arguably remains the holy grail of the gambling industry. I’ve always felt that having what I call a ‘healthy tension’ between regulators and industry is needed to ensure industry continues to raise standards in responsible and safer gambling whilst allowing industry freedoms to innovate and grow sustainably.

This balancing act between sustainable growth and what the economists call the negative externalities of industry affects every industry, not just gambling. As a sector we are still learning about the pathways towards gambling harms and therefore, unsurprisingly, different jurisdictions are exploring different philosophies and approaches to consumer protection.

Here in the UK, player affordability and the single customer view have been key topics in the past two years and approaches and solutions are evolving. Other jurisdictions have taken more one-size-fits-all approaches, with stake limits for online slots (eg Germany), and more player-centric approaches, such as enforcing time and spend limits for each online player session (eg Spain), Striking the balance whilst some jurisdictions have kept monopolies in place (eg Norway), citing consumer protection as the main reason for this approach.

Whilst much attention in recent years has been centred on the iGaming sector, land-based gambling remains a major part of the industry and is embracing these solutions and services. It can be challenging in a land-based environment to innovate, however if the sector is to grow sustainably, it needs to continue to evolve its solutions, particularly leveraging technology further to protect customers.

Regardless of the different approaches, responsible or safer gambling remains a major strategic factor in building regulated and sustainable gambling markets globally. It also highlights the challenges and complexities for multi-national organizations operating in regulated markets as no two jurisdictions are the same.

This complexity, together with the continued pressure to raise standards in consumer protection, has seen considerable investment in safer and responsible gambling capabilities in recent years and there has never before been the range and depth of GAMING professional solutions and services that operators and suppliers can leverage to help ‘raise the bar’.

The ICE conference provides an excellent opportunity for all stakeholders, including legislators, regulators, academics, welfare groups and industry to get together to build strategies for using evidence and technology to strengthen consumer protection. The contributors to this safer gambling supplement are all working hard to develop insights, solutions and services to help the industry better protect players. There are many others and this week is a great opportunity to engage with them and see how you can work together to build a more sustainable industry.

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