Several years ago, in April 2020, the United Kingdom became the first country to implement a complete ban on the use of credit cards for online and retail gambling. More than four years after the implementation of the ban, new research probed into the impact of the measure, how it affected gamblers and whether or not some consumers changed their behavior in light of the ban.
A report on the evaluation of the credit card ban in the UK was released Thursday by the National Center for Social Research. The evaluation of the credit card ban outlined strategic objectives, including determining the degree to which the ban was implemented, its impact on consumer behavior and other important factors that measured its effectiveness.
Focusing on the perception of the ban, the recently released report confirmed that it was “perceived to be a positive change by key stakeholders (people who gamble, affected others, support providers) overall.” Importantly, people who engaged in gambling activities admitted to understanding why the measure was needed.
Despite being perceived as an overall positive change, providers of support services acknowledged that “the ban was not comprehensive enough as it did not address other types of borrowed money.” While gambling operators considered that a risk-based approach would have been a better solution, charities and organizations providing support for people affected by at-risk gambling warned that problem gamblers may “turn to other sources of borrowed money which will make it difficult for affected others to monitor the spending of those who gamble.”
Notably, the evaluation uncovered that the increased friction did not always change the consumers’ gambling patterns. This means that after the ban, the people who admitted to gambling and borrowing money didn’t stop doing so.
When it comes to awareness of the ban on credit card gambling, the National Center For Social Research’s white paper explained that 57% of the people at moderate risk of gambling or ones at high risk of gambling were more likely to be aware of the restriction.
In contrast, only 29% of the people who experienced low levels of problem gambling were aware. A similar percentage of 23% of the surveyed individuals who admitted to having no gambling problems said they knew about the ban on credit cards for gambling. Approximately 11% of the non-gamblers said they were informed about the credit card gambling ban.
Per the recent evaluation, the consumers were notified about the ban on gambling with credit cards through different channels with the list including social media, pop-up messages and emails sent by gambling providers. Despite the wide variety of channels used to inform the population, some responders considered that more precise targeting could have been used.
Recently, a separate study conducted by the National Center for Social Research for GambleAware uncovered that marginalized communities use gambling as a method to cope with social exclusion. Although such communities included a diverse range of groups, gambling was found to be a common method to deal with many issues, including discrimination, mental health issues and loneliness, among others.
August 30, 2024
August 05, 2024
Brazil Bets framework complete as SPA settles on Responsible Gambling rules
The Secretariat of Prizes and Betting (SPA) has completed the technical framework required for the government of Brazil to launch a federal online gambling market – commonly referred to as ‘Bets’.
On Friday, the SPA submitted ordinance No.1231 to the government, outlining its rules and technical guidelines for responsible gambling with regard to marketing, communications, and advertising of the Bets market.
The document supports previous SPA ordinances on IT securities, AML, licensing criteria, and game authorisations to guarantee the launch of a legal framework for “ethical and licensed gambling for the Federal Constitution of Brazil.”
SPA guidelines underscore that operating agents must observe Responsible Gambling as a duty of “promoting healthy, socially responsible gambling while preventing harm.”
Betting agents must adhere to statutory duties educating customers on the risks of gambling addiction/disorders and ensure compliance with age restrictions prohibiting under-18s from online gambling.
All customers must be provided with tools to set limits on money and time spent gambling, as betting agents must ensure that customers are monitored for symptoms of gambling disorders.
Self-exclusion from online gambling activities is recognised as a “legal right for customers,” in which operators must ensure no marketing communication with players that have self-excluded.
Operators must ensure that customers have the legal right to access clear information on odds, terms, and conditions, and to withdraw funds and close accounts without unnecessary restrictions.
Personal data and privacy must adhere to rules on IT securities. Customers are required to provide accurate personal information and comply with the legal requirements of betting firms on ID verification. Customers cannot act as intermediaries for third-party bets.
Prior to licensing, all operators must present the SPA with a “responsible gaming policy” and ensure that it accurately reflects the actual functioning of its betting system.
The integrity of betting systems includes complying with regulatory requirements on AML protections and the filing of income statements and tax receipts.
Advertising rules prohibit targeting minors and vulnerable audiences. Marketing campaigns cannot imply “gambling as a solution to financial problems,” or make misleading claims about winning odds, linking gambling to personal or financial success.
Advertisements must clearly display age restrictions (18+) and warnings about addiction risks, as betting agents must ensure that all “promotional content is clearly identifiable as advertising.”
On social media, campaigns must be transparent when promoted by influencers, who must disclose the commercial relationship and ensure that campaigns are promoted to over-18 audiences.
The ordinance upholds the rule that customer sign-up bonuses are prohibited, but “actions that encourage bettor loyalty are permitted.”
In sports and media sponsorship, betting campaigns must promote responsible advertising and avoid sponsoring events or teams involving minors. Sponsorships will be reviewed to ensure responsible messaging to audiences.
The SPA detailed that regulatory oversight of advertising campaigns will be initiated from the market’s expected launch on 1 January 2025, with “immediate sanctions for non-compliance.”
Stringent administrative penalties have been outlined for individuals or entities that violate regulations, including warnings, fines, suspension of activities for up to 180 days, and cancellation of authorisations.
As outlined under licensing accreditations, Bets fines may range from 0.1% to 20% of the revenue generated in the year preceding the initiation of proceedings, with a maximum limit of BRL 2 billion.
Offenders may also face prohibitions from obtaining new authorisations and engaging in certain activities for up to ten years, as well as being banned from participating in public service concessions for at least five years.
On Friday, the SPA submitted ordinance No.1231 to the government, outlining its rules and technical guidelines for responsible gambling with regard to marketing, communications, and advertising of the Bets market.
The document supports previous SPA ordinances on IT securities, AML, licensing criteria, and game authorisations to guarantee the launch of a legal framework for “ethical and licensed gambling for the Federal Constitution of Brazil.”
SPA guidelines underscore that operating agents must observe Responsible Gambling as a duty of “promoting healthy, socially responsible gambling while preventing harm.”
Betting agents must adhere to statutory duties educating customers on the risks of gambling addiction/disorders and ensure compliance with age restrictions prohibiting under-18s from online gambling.
All customers must be provided with tools to set limits on money and time spent gambling, as betting agents must ensure that customers are monitored for symptoms of gambling disorders.
Self-exclusion from online gambling activities is recognised as a “legal right for customers,” in which operators must ensure no marketing communication with players that have self-excluded.
Operators must ensure that customers have the legal right to access clear information on odds, terms, and conditions, and to withdraw funds and close accounts without unnecessary restrictions.
Personal data and privacy must adhere to rules on IT securities. Customers are required to provide accurate personal information and comply with the legal requirements of betting firms on ID verification. Customers cannot act as intermediaries for third-party bets.
Prior to licensing, all operators must present the SPA with a “responsible gaming policy” and ensure that it accurately reflects the actual functioning of its betting system.
The integrity of betting systems includes complying with regulatory requirements on AML protections and the filing of income statements and tax receipts.
Advertising rules prohibit targeting minors and vulnerable audiences. Marketing campaigns cannot imply “gambling as a solution to financial problems,” or make misleading claims about winning odds, linking gambling to personal or financial success.
Advertisements must clearly display age restrictions (18+) and warnings about addiction risks, as betting agents must ensure that all “promotional content is clearly identifiable as advertising.”
On social media, campaigns must be transparent when promoted by influencers, who must disclose the commercial relationship and ensure that campaigns are promoted to over-18 audiences.
The ordinance upholds the rule that customer sign-up bonuses are prohibited, but “actions that encourage bettor loyalty are permitted.”
In sports and media sponsorship, betting campaigns must promote responsible advertising and avoid sponsoring events or teams involving minors. Sponsorships will be reviewed to ensure responsible messaging to audiences.
The SPA detailed that regulatory oversight of advertising campaigns will be initiated from the market’s expected launch on 1 January 2025, with “immediate sanctions for non-compliance.”
Stringent administrative penalties have been outlined for individuals or entities that violate regulations, including warnings, fines, suspension of activities for up to 180 days, and cancellation of authorisations.
As outlined under licensing accreditations, Bets fines may range from 0.1% to 20% of the revenue generated in the year preceding the initiation of proceedings, with a maximum limit of BRL 2 billion.
Offenders may also face prohibitions from obtaining new authorisations and engaging in certain activities for up to ten years, as well as being banned from participating in public service concessions for at least five years.
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