The UK is considering updating its 17-year-old gambling legislation to address addiction concerns. Ministers are currently debating maximum stakes between £2 and £5 for online casinos and a ban on free bets. Gaming companies could also be required to remove features from online games that increase the level of risk for customers, such as quick games where customers can lose money faster.
Online gaming sites may be required to check if their players can afford to play to ensure they don’t spend more money than they can afford. Prime Minister Boris Johnson and other cabinet members must approve the final decision within the next week.
Analysts interviewed by CNBC have praised the planned legislation, saying it isn’t as stringent as previous versions that had been blocked. According to Jefferies’ James Wheatcroft, investors may be relieved that the planned legislation isn’t more restrictive. According to the Wednesday note to clients, the most significant aspects are “relatively benign” and can be expected to have a limited financial impact on the sector. At 9:08 a.m., 888 Holdings Plc shares increased 4.9% in London trading, Playtech Pld rose 0.2%, and Flutter Entertainment Plc advanced 0.8%. Entain Plc was up 0.1% at 9:08 a.m.
According to a source, the government plans to reduce restrictions on physical casino operators. The reduction of the limits will allow casinos to have up to 80 gaming machines in their businesses. The government will also allow casinos to offer credit to wealthy foreign tourists. Casinos can compete with internet gambling firms by providing credit to foreign tourists. Rank Group Plc, which owns casinos in the United Kingdom, has gained 3.3% due to this news.