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Compliance Updates

UK House of Lords Calls for Urgent Regulation of Loot Boxes

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The House of Lords Gambling Committee has urged the UK government to classify video game loot boxes as “games of chance.” The recommendation came as part of a wide-ranging report in which the committee suggested a number of changes to the gaming industry.

“If a product looks like gambling and feels like gambling, it should be regulated as gambling. The government must act immediately to bring loot boxes within the remit of gambling legislation and regulation,” the report says.

Loot boxes have long been controversial in video games. They offer players a chance at a randomised reward when opened. To further complicate matters, boxes can often be bought for real money, and the rewards can sometimes be traded.

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Lord Grade, chairman of the committee, said that lots of other countries have already started to regulate loot boxes because “they can see the dangers” which is teaching “kids to gamble.”

He said the Gambling Act was “way behind what was actually happening in the market” but he added that the “overwhelming majority” of the report’s recommendations “could be enacted today” as they do not require legislation.

The Lords report is wide-ranging, covering the entire gambling industry, but focuses in part on new forms of gambling, and those targeted towards children.

“There is academic research which proves that there is a connection, though not necessarily a causal link, between loot box spending and problem gambling,” it says.

The Lords report concludes that ministers should make new regulations which explicitly state that loot boxes are games of chance. It also says the same definition should apply to any other in-game item paid for with real money, such as FIFA player packs.

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The government told the committee that its planned future review of the Gambling Act would focus on loot boxes. But the Lords report warns: “This issue requires more urgent attention.”

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Compliance Updates

UKGC Launches Latest Consultation on Gaming Machine Technical Standards

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The Gambling Commission has launched a new consultation aimed at making gambling in Britain safer and fairer.

This is the Commission’s third consultation to implement proposals from the 2023 Gambling Act Review White Paper High stakes: gambling reform for the digital age.

The consultation, which will run for 16 weeks (from 29 January 2025 to 20 May 2025), is focussed on the gaming machine technical standards and the related testing strategy. It includes proposals to:

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• introduce five new standards, a licence condition and a social responsibility code provision designed to support and empower consumers to use gaming machines safely at every stage of the customer journey – this includes proposals on time and monetary limit setting functionality and information provision such as safer gambling messaging and the display of net position and session time

• amend three existing standards having considered industry proposals to improve customer enjoyment and gameplay

• consolidate the existing 12 gaming machine technical standards into a single standard, whilst amending the format to be more consistent with our Remote gambling and software technical standards for greater clarity

• update the gaming machine technical standards and the related testing strategy to remove obsolete material.

Tim Miller, Gambling Commission Executive Director for research and policy, said: “The White Paper sets out that a top priority is ensuring that gambling happens safely. We share this commitment and today’s consultation proposes how we could implement gaming machine changes in the land-based sector.

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“We recognise that regulatory changes that impact the design of machines can come with considerable costs. We are encouraging consumers, gambling businesses and other interested groups to share evidence that will assist us in measuring both the likely regulatory impacts of the proposed changes and the likely costs of implementing them. This evidence will be invaluable to helping make a robust assessment on whether the benefits to consumers are proportionate to the costs involved.”

The post UKGC Launches Latest Consultation on Gaming Machine Technical Standards appeared first on European Gaming Industry News.

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Compliance Updates

Permanent Secretary for the Economy Visits MGA Offices

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On Tuesday, 28 January 2025, the newly appointed Permanent Secretary within the Ministry for the Economy, Enterprise, and Strategic Projects, Mr Godwin Mifsud, paid an official visit to the Malta Gaming Authority (MGA/Authority) offices at SmartCity. He was greeted by MGA CEO Charles Mizzi, alongside members of the MGA Executive Committee and staff.

During his visit, Mr Mifsud was given a tour of the Authority’s offices and had the opportunity to engage directly with team members from various departments. These interactions provided him with a deeper understanding of their responsibilities, the core functions of each department and the challenges they face in their day-to-day work.

The MGA CEO outlined the Authority’s strategic direction to Mr Mifsud and shared details of key projects currently underway, as well as those planned for the future.

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Why stakeholders must be vocal as part of UKGC consultation on gaming machines

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As the UK Gambling Commission announces the launch of its consultation on proposed new rules for gaming machines, Nick Arron, lead partner for the Gambling Team at Poppleston Allen urges stakeholders to ensure they are heard

The UK Gambling Commission this week announced the launch of a 16-week consultation, seeking input on proposed new rules for gaming machines in retail venues.

The consultation focuses on technical standards and related testing strategy and aims to improve consumer protection through a number of proposed changes. The consultation is due to end on May 20.

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Nick Arron, lead partner for the Betting and Gambling Team at Poppleston Allen, encouraged stakeholders such as operators and licensees to have their say on what impact these proposed changes will have, including the potential costs.

He said: “Robust stakeholder engagement is an important part of this progress. It’s important that operators have their say so that the regulatory framework balances both consumer safety and industry sustainability.

“Changes will require affected businesses to update their processes and technologies to ensure that any changes are not only implemented by the required date but also properly enforced.

“As this consultation progresses, operators will need to weigh the implications of adopting these new standards, not least the cost. While the intention is to enhance consumer protection, businesses must carefully assess the operational and financial implications of the proposed changes.

“While the Gambling Commission’s initiative is a positive step in prioritising consumer safety, the real challenge will be ensuring that the proposed regulatory adjustments are manageable for businesses already operating under thin margins.”

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Tim Miller, Gambling Commission executive director for research and policy, said: “We recognise that regulatory changes that impact the design of machines can come with considerable costs.

“We are encouraging consumers, gambling businesses and other interested groups to share evidence that will assist us in measuring both the likely regulatory impacts of the proposed changes and the likely costs of implementing them.

“This evidence will be invaluable to helping make a robust assessment on whether the benefits to consumers are proportionate to the costs involved.”

The post Why stakeholders must be vocal as part of UKGC consultation on gaming machines appeared first on European Gaming Industry News.

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