In its latest consultation response, the Gambling Commission has identified multiple changes to the Licence Conditions and Codes of Practice (LCCP) and Remote Gambling and Software Technical Standards (RTS) that will soon come into force. 

Background

In November 2023 the Gambling Commission launched a consultation on a range of LCCP and RTS changes. The latest response focuses on three specific topics, being:

1. financial limit tools;
2. transparency on customer funds protections; and
3. financial contributions to gambling research, prevention and treatment.

Summary

From 31 October 2025, operators will be required to implement a number of changes, including requiring customers to set a financial limit (using a free text box) on registration or first deposit, requiring positive action from a customer to opt out of setting a financial limit, implementing decreases to financial limits immediately, prompting customers to review their financial limits every 6 months. In addition, operators that don’t protect customer funds will be required to remind customers of this position every 6 months, referring to the value of the funds held for the customer. 

The Commission decided not to implement cross-operator deposit limits at this time, though this will be kept under review.

Operators should consider carefully the contents of the Gambling Commission’s response and begin taking steps to implement any changes that will be required by the 31 October 2025 deadline. The changes are likely to require shifts in business processes, from consumer facing front-end systems all the way to back-end system workflows. It is important to act now to ensure that compliance can be achieved by the implementation deadlines.

Financial Limits

The consultation covered three main types of customer led-tools: (1) customer-led financial limits implemented at account level; (2) cross-operator deposit limits; and (3) barriers to consumer choice which may discourage consumers implementing safer gambling measures.

Financial limits

The Gambling Commission’s response indicates that the following amendments will be made to the RTS from 31 October 2025:

• Timing (RTS 12A): Operators must now require customers to set a financial limit as part of the registration process or when the first deposit is made. The chosen limit must be implemented as soon as practicable, and the operator must inform the customer when the limit will come into force.
• Choice (RTS 12B): Customers must be able to select their financial limits via a ‘free text’ box i.e. optional drop down lists or click boxes are no longer permitted. 
• Consistency of limits (RTS 12B): All operators must implement account level financial limits i.e. there is no longer an option to implement limits at a product or category level in place of the broader account level limit. 
• Visibility and accessibility (RTS 12C): A new requirement will be introduced through which operators must provide a clear, direct link to financial limit facilities on their website home page and deposit pages. Also, operators must ensure that the limit setting facilities are accessible through a minimal number of clicks.
• Amending limits (RTS 12D): The requirement that operators must simply “take all reasonable steps” to only increase limits following a customer request, a 24 hour cooling off period and a positive action following the cooling off period by the customer has become an absolute obligation. Operators must now also ensure they implement threshold limit reductions immediately on request, unless prevented by technical or system failures. 
• Activity (RTS 12D): The Gambling Commission will not be proceeding with the proposal to require operators to alert customers who are approaching their limit, or provide customers with account activity statements. However, additional requirements will be implemented under which operators must prompt customers periodically (every 6 months) to review their account and transaction information.
• Implementation (RTS 12E): Financial limit setting must be the default choice, for example by pre-selected tick boxes. The customer must perform a positive action to decline setting the limit, prior to gambling. If no limit is set, an annual prompt must be given to the customer to review their settings.

Cross-operator limits

The consultation took views on the effectiveness of cross-operator deposit limits in reducing gambling harm. The Gambling Commission has determined that cross-operator deposit limits will not be introduced at this time as a requirement under the LCCP and RTS, but this will be kept under review. 

Barriers to choice 

The Gambling Commission’s response noted concerns in relation to product design which may undermine the protection of consumer interests, such as account closure information being unclear and operators adding layers of friction to withdrawals (including minimum withdrawal thresholds). The response has not set out any specific reforms that will be introduced in this area, but this is clearly an area that the Gambling Commission will continue to monitor.

Protection of Funds

The Gambling Commission consultation proposed two potential reforms in connection with the protection of customer funds in the event of an operator entering insolvency. Both options required operators to actively remind customers if their funds were not protected in these circumstances, one with a threshold on the funds that must be held and the other applying regardless of the amount of funds. The Gambling Commission has decided to implement the (more stringent) no threshold approach.

LCCP 4.2.1 will be amended from 31 October 2025 so that the terms and conditions under which gambling facilities are provided state whether customer funds are protected in the event of insolvency, the level of such protection and the method by which this is achieved. These terms must be provided in writing to each customer, in a manner which requires the customer to acknowledge receipt of the information and does not permit the customer to utilise the funds for gambling until they have done so, both on the first occasion on which the customer deposits funds and any subsequent deposit where the terms in relation to protection of funds have since changed. Where the operator has a ‘not protected’ rating, a reminder of this must be sent to the customer every 6 months referring to the value of the funds held for the customer.

Financial Contributions

We have previously reported on the upcoming statutory levy that will be introduced in April 2025, under which gambling operators will be subject to a statutory levy at a specified rate of their Gross Gambling Yield.

The Commission has confirmed that Social Responsibility Code 3.1.1 will be amended to align with the introduction of the statutory levy, meaning that the requirement to make annual voluntary financial contributions to organisations delivering or supporting research into the prevention and treatment of gambling related harms will no longer be applicable.