SBC News Voice of the Sports Betting Industry
The UK Gambling Commission (UKGC) has launched consultations on the new deposit limits following an announcement made last month..
Part of the Gambling Review White Paper, the requirements for license holders to ensure customers are setting deposit limits on their online spending were added by the UKGC to the Licence Conditions and Codes of Practice (LCCP).
The changes – due to come into effect from 31 October – aim to give more control back to the consumers about how they manage their gambling spend when wagering with an online operator, setting and maintaining deposit limits on their own accord.
In order to facilitate that, the UKGC has instructed all online gambling providers to prepare for the deadline by developing their own procedures, which will require new customers to set a deposit limit before making the first payment into their account.
Existing customers will also have the option to limit their spend, with the new operator controls allowing for an easier review and modification of the desired deposit threshold – with online licencees required to issue reminders every six months.
Recent operator activity however might have led to the muddying of the exact definition of deposit limits, the UKGC explained.
The regulator pointed out that some online gambling platforms have deployed ‘net deposit limits’, where withdrawal amounts also come into play.
An example of that is when a customer sets a £20 weekly deposit limit and withdraws £10, making the same limit go to £30. This could lead to unnecessary confusion among customers, the UKGC added.
In fact, the regulator highlighted that in the period between January and December 2024, it was made aware of the potential issues stemming from net deposit limits thanks to a string of complaints from concerned customers.
Some expressed dissatisfaction due to the practice being “potentially unfair and misleading”, while others commented that net deposit limits are undermining the whole idea of setting a limit.
Therefore, the new consultation is asking for opinions on how deposit limits should be defined and communicated to customers.
“Via responses to the consultation for these changes (the initial consultation), engagement with industry and consumer contacts, it has become clear that some operators are changing the way in which they interpret financial limits, in particular deposit limits,” the consultation read.
“In our view, financial limits termed ‘net’ deposit limits would not meet the definition of ‘deposit limits’ proposed in our initial consultation.
“Whilst we are of the view that ‘net’ deposit limits would not meet the definition of ‘deposit limits’ proposed in the initial consultation, we are choosing to consult further on this issue to ensure clarity, rather than implement the initial consultation proposals and pursue this as a compliance matter.”
The consultation consists of 20 questions looking at the exact texts on deposit limits from the Remote Gambling and Software Technical Standards (RTS) framework, and asks for any suggestions as to how they can be changed to achieve more clarity. Respondents have until 30 April to participate in the survey.
