UK gambling operators face new deposit limits and fund protection rules

Online gambling in the UK continues to grow in popularity as technological advances shape innovations and behaviours in the gaming industry. Players can now access and engage with their favourite casino games or sports betting operators, anywhere and anytime they choose.

While innovation has increased, so too has competition, with new operators looking to benefit from the sector's increased revenues. Other beneficiaries include today’s gamers, who are now able to choose from many reputable and innovative online gaming operators.

Gambling commission changes

In February, the Great Britain gambling commission announced multiple changes to current gaming regulations, in order to change and better regulate the way gambling in Britain is regulated. These new regulations will be enforced from October 2025.

The regulations are in response to the gambling act review white paper “High stakes: gambling reform for the digital age”, that was published in April 2023. The paper was a product of consultation with both consumers and online operators.

New customer tools

One of the aims of the new rules is to give consumers a better way to manage their gaming through the setting of credit limits. This will make it easier for gamers to set and maintain deposit limits on their online accounts and give them more effective ways to manage their gambling.

New rules include:

• Customers must set a financial limit before making their first deposit
• Operators to make it easy to review and alter this limit at any point after
• Operators must remind consumers to review their account and transaction information every six months

New customers

Most online casino sites offer bonuses to new players, this is an incentive to attract players to their site. However, following the new regulations, any new customers signing up to online operators must be asked to set a financial limit on their account before they make their first deposit.

Simplicity and clarity

Operators must make it easy for customers to review and change their deposit limits at any time they choose. Also, deposit limits must be clearly defined and communicated to customers as some operators offer “net deposit” limits which consumers can find confusing.

For instance, deposit limits typically involve a simple limit on the amount a customer can deposit over a specific time period, such as paying £10 a week into an account.

However, some operators have begun offering consumers “net deposit limits”, which takes into account withdrawals. For example, if a customer sets a £10 weekly deposit limit but also withdraws £10 from their account, then the total amount they can deposit that week goes up to £20.

The commission found this to be unnecessarily confusing and sought to provide clarity and simplicity for customers.

Reminders

Once financial limits are set, customers must also receive a reminder from their chosen operator to review their account and transaction information every six months. It is hoped that this will better help consumers maintain their account preferences and deposit limits.

The commission explained that while many operators do currently offer customers these good practices, the legislation will ensure everyone can expect the same industry standards right across the board.

Greater transparency

Once customers have deposited funds with an online operator or even won some money, they need to know that their money is safe. From 31st October, all operators whose customer funds are not protected in the event of insolvency must routinely remind consumers every six months that their money is not protected.

Terms and conditions

There is no legal duty for gaming operators to protect customers' funds in the event of insolvency, however, many reputable businesses do. The new regulations make sure that all operators clearly state in their terms and conditions whether a customer’s funds will be protected in the event of insolvency

This information must be made available when the customer first deposits their money. The level of that protection must also be stated, and is broken down into four different levels:

1. Not protected – no segregation of customer funds
2. Not protected – segregation of customer funds
3. Medium protection: segregation of customer funds in separate accounts but not secured in case of insolvency.
4. High protection: funds are safeguarded through insurance or an independent trust arrangement.

The aim of the changes is to help consumers understand which operators protect their money and which do not, allowing them to make better informed decisions when choosing a suitable operator for their gaming.

The future of gaming

Ultimately, the beneficiaries of these changes by the gambling commission are the millions of customers who use online operators for their gaming and gambling. By providing a licensed and well-regulated industry, consumers are better able to enjoy their game time.

Tim Miller, executive director for research and policy at the commission, said: “These changes will help consumers decide on deposit limits, enable them to keep track of their spending and ensure they are fully aware of what happens to their funds should an operator become insolvent.”

The gambling commission is expected to continue to work on delivering the remaining commitments in the White Paper, including evaluation of the new regulations.

Disclaimer: Players must be 18 years + to partake in any gambling, betting or casino activity. Players are urged to seek help if they require it. Players play at their own risk.