A crackdown on betting firms can stop profits from problem gamblers
Yesterday’s proposals for limits on gambling should help betting firms stop making money off of problem gamblers, but we must also be careful to avoid blanket bans, writes Neil Banbury.
Every day, technology is making life better – from tracking our sleep patterns and blood pressure on smart watches to helping identify the best car insurance.
It would not instantly come to mind for many, but one of the clearest instances where investment in AI and data has brought a number of benefits to the consumer is the UK gambling sector.
In the UK, close to half of all adults place a bet each year, and innovations in technology have meant that almost all do so in a safe manner. Yet, Gambling Commission figures do show that 0.2 per cent of the population face issues with their gambling. This raises the question of how we strike the right balance of supporting the minority who experience issues without penalising the vast majority who enjoy gambling safely.
Yesterday’s long-awaited white paper on gambling regulation gets this issue right in many ways. Technology is one of the best ways we can make sure that regulation limits harm while not stifling success.
Competition across the sector has seen significant investment in delivering a better and safer experience for customers through monitoring behaviour, offering targeted support and explaining why problem gambling remains very low. However, the government rightly believes more needs to be done to protect those in society who are at risk have outlined how this can be done while offering further safeguards for the majority.
Let’s be clear – this white paper will require further contributions from industry to fund research, education and treatment; this will lead to further restrictions on sponsorship and advertising and will see greater investment placed for restrictions on our products through financial checks and limits applied.
But this is needed. To be a long-term sustainable business, safer gambling must be at the heart of everything we do, and these proposals offer a helping hand.
Sensible regulation will allow players to have confidence in who they choose to play with, and will also ensure that players are not driven towards the wild west of gambling operators based in jurisdictions where there is no regulation at all in practice. The opportunity now is to enable industry to continue innovating to keep players safe, and the government clearly wants this to be the case.
There are several propositions in the white paper that are already in place and working at Kindred. For example, we have already been rolling out our data-led affordability framework with our partner, TransUnion. Each customer is assigned a risk score based on their individual financial circumstance. This means differing experiences and limits when using our platforms based on their profile, while being monitored for any signs of harm. That way, problems can be nipped in the bud.
We’re also aiming to generate zero per cent of revenue from people who exhibit problem behaviours. We have made significant steps to achieve this, and the share in revenue from these players is now down to 3 per cent.
We also have the ability and are trialling how we can offer different stakes to different types of customers. While the government’s suggestion to consult limits on under 25s make sense, for other players, dynamic staking using AI and data is an existing and deliverable way of offering all customers a safe and enjoyable experience based on their individual circumstance. This is the best way to strike the right balance whilst avoiding the risks presented by blanket approaches.
The priority must now be to build on the white paper’s positive work, by ensuring regulation remains proportionate and encourages rather than throttles innovation. We can and want to continue investing in delivering products that all customers are confident they can enjoy safely and will work with the government to deliver this.