UKGC Implements New Rules on Consumer Protections by 2025

The UK Gambling Commission (UKGC) is set to implement pivotal regulatory updates to enhance consumer oversight of gambling activities and to fortify transparency concerning player funds. Commencing on 31 October 2025, these changes will inaugurate standardized deposit limit prompts and bolster financial safeguards for bettors. Among the primary changes, the introduction of mandatory deposit limits for new users stands out. From late October 2025, every licensed gambling entity in the UK is required to ask new customers to set a spending cap before they can make an initial deposit. While some operators have already voluntarily implemented similar restrictions, this new rule aims to standardize practices across the entire industry.

Mandatory Deposit Limits and Fund Protection Measures

Players will be permitted to modify their deposit limitations at any point following their initial setting. To promote responsible gambling behavior, operators are also obligated to notify users every six months to reassess their deposit limits and view their transaction histories. This initiative by the UKGC emphasizes furnishing consumers with potent instruments for managing gambling tendencies and maintaining financial cognizance. The regulatory body highlights the need for improved clarity regarding customer funds protection.

Currently, operators are mandated to inform players within their terms if their funds are safeguarded against insolvency. Under the new scheme, this declaration must be made conspicuously at the point of the first deposit, classified across four levels of protection: not protected with no segregation, not protected with segregation, medium protection, and high protection. By 31 October 2025, operators that hold unprotected player funds must remind clients biannually that their funds face potential risk in case of the company's insolvency. Although legally not obliged to secure client funds, the UKGC notes that numerous companies choose to do so voluntarily, and this transparency assists players in making informed judgments about whom to trust with their financial deposits.

Statutory Levy and Contributions Towards a Safe Gambling Space

In terms of funding regulations, there has been clarification regarding the statutory levy rolled out in November 2024. Licensed gambling businesses are now required to contribute between 0.1% and 1.1% of their Gross Gambling Yield (GGY). The specific percentage depends on various factors, including the sector of operation, gambling type, and the products' risk profile. Anticipated to begin in April 2025, the UKGC has also confirmed the removal of the existing obligation for operators to annually support a panel of research, prevention, and treatment organizations. This step seeks to synchronize with the statutory levy, thus eliminating any overlap.

Tim Miller, the Executive Director for Research and Policy at the UKGC, emphasized the importance of these regulatory shifts stating, “These changes illustrate our commitment to ensuring gambling is fair and open by improving consumer empowerment and choice.” His statements underscore the intention of these alterations, which is to empower consumers with increased control over their fiscal limits, improved expense monitoring, and a clearer understanding of fund protection policies.

In line with the UKGC's commitment to uphold regulatory standards as delineated in the 2023 Gambling Act White Paper, these measures are designed to ensure that the UK's gambling industry remains transparent, focused on consumer safety, and responsible.

Source: UKGC Enforces New Consumer Protections and Deposit Limits, lcb.org, 05 February 2025.

By GamesAndCasino