The UK government is set to announce new restrictions on online slot machines, which could affect the gambling industry and its customers. The new stake limits, which will be revealed on Friday, are expected to be £2 for under-25s and £5 for older gamblers. The move is aimed at reducing the risk of addiction and protecting vulnerable players from harm.
Why are online slot machines a concern?
Online slot machines are one of the most popular and profitable products in the online gambling market, accounting for £3.2bn of the sector’s £11bn in revenues last year, excluding the national lottery. However, they also carry a higher rate of addiction than other forms of gambling, such as sports betting or bingo. According to the Gambling Commission, online slots have an average return to player (RTP) of 95%, meaning that for every £100 wagered, the player loses £5 on average. However, some online slots have features that can increase the volatility and unpredictability of the outcomes, such as bonus rounds, free spins, multipliers, and jackpots. These features can create a false sense of winning and entice players to chase their losses or increase their stakes.
The government has been consulting on imposing a maximum stake for online slot machines since publishing a white paper on gambling reform last year. The white paper also proposed other measures to enhance consumer protection, such as banning reverse withdrawals, limiting spin speeds, and requiring operators to display clear information on wins, losses, and time spent. The government’s decision to introduce stake limits for online slot machines follows the successful implementation of a similar policy for fixed-odds betting terminals (FOBTs) in 2019. FOBTs are electronic machines that offer casino-style games, such as roulette and blackjack, in betting shops. The government reduced the maximum stake for FOBTs from £100 to £2, after a long campaign by anti-gambling activists, MPs, and the media, who dubbed them the “crack cocaine” of gambling.
How will the stake limits affect the industry and the players?
The stake limits for online slot machines could have a significant impact on the gambling industry and its customers. The industry is likely to face a substantial loss of revenue, as online slot machines are the largest and fastest-growing segment of the online gambling market. An industry source told the Guardian that they expect a 5-10% revenue drop if the UK introduced a five-pound stake limit. Some operators may also have to adjust their business models and marketing strategies, as they will have to rely less on high-value players who stake large amounts and more on attracting and retaining a wider customer base.
The players, on the other hand, may benefit from the stake limits in terms of reducing their exposure to harm and enhancing their responsible gambling behaviour. The stake limits may prevent players from spending more than they can afford, chasing their losses, or developing a gambling addiction. The stake limits may also encourage players to seek alternative forms of entertainment, such as playing other games, watching sports, or engaging in hobbies. However, some players may also face some challenges or drawbacks from the stake limits, such as losing their enjoyment, feeling frustrated, or switching to unregulated platforms that offer higher stakes and lower protections.
What are the reactions and opinions on the stake limits?
The stake limits for online slot machines have received mixed reactions and opinions from various stakeholders, such as the government, the industry, the regulators, the campaigners, and the players. The government has defended its decision to introduce stake limits as a necessary and proportionate measure to protect the public from the harms of gambling. The culture secretary, Oliver Dowden, said: “We want to strike the right balance between protecting vulnerable people and allowing adults to make informed choices about how they spend their money.”
The industry has expressed its concerns and reservations about the stake limits, arguing that they are not based on evidence and that they will have negative consequences for the sector and the economy. The Betting and Gaming Council (BGC), the trade body that represents the UK’s licensed gambling operators, said: “We are disappointed that the government has decided to impose arbitrary and disproportionate stake limits on online slot machines, without any consultation or impact assessment. This will hurt the industry, cost jobs, and reduce tax revenues, while driving customers to the black market, where there are no safeguards or controls.”
The regulators have welcomed the stake limits as a positive and effective step to enhance consumer protection and reduce gambling harms. The Gambling Commission, the statutory body that oversees the UK’s gambling industry, said: “We support the government’s decision to introduce stake limits for online slot machines, as part of a wider package of reforms to make gambling safer and fairer. We will work with the industry to implement the new rules and ensure that they are complied with.”
The campaigners have praised the stake limits as a victory and a breakthrough for the fight against gambling addiction and its social costs. The All-Party Parliamentary Group (APPG) on Gambling Related Harm, a cross-party group of MPs that has been campaigning for gambling reform, said: “We are delighted that the government has listened to our recommendations and decided to impose stake limits for online slot machines, which are the most addictive and harmful form of gambling. This is a huge win for the millions of people who have been affected by gambling harms and a testament to the power of cross-party collaboration and public pressure.”
The players have shown diverse and varied reactions and opinions on the stake limits, depending on their preferences, experiences, and circumstances. Some players have welcomed the stake limits as a helpful and sensible measure to control their spending, limit their losses, and enjoy their gambling more responsibly. One player said: “I think the stake limits are a good idea, because they will stop me from losing too much money and getting into debt. I used to play online slots with £10 or £20 a spin, and sometimes I would lose hundreds of pounds in a few minutes. Now I will play with £2 or £5 a spin, and I will have more fun and less stress.”
Other players have opposed the stake limits as an unnecessary and intrusive measure that will ruin their entertainment, limit their choice, and drive them to illegal sites. Another player said: “I think the stake limits are a bad idea, because they will take away my freedom and my enjoyment. I like to play online slots with high stakes, because they give me more excitement and more chances to win big. Now I will have to play with low stakes, and I will get bored and frustrated. Or I will have to find another site that offers higher stakes, even if it is not licensed or regulated.”
