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- Mar 31, 2005
Regulatory Compliance and Its Impact on Players
By Dave Sawyer, Casinomeister.com
Having been involved in the online gambling industry for over 25 years, when I started out with Ladbrokes based in Gibraltar on 2nd October 2000, I have witnessed considerable changes in how online casinos operate, particularly when it comes to the regulations they are required to follow.
When I first started playing at online casinos back in the early 2000’s, things were very different. You could register an account, make a deposit and start playing your favourite casino games without having to jump through numerous hoops.
Fast forward to 2026 and the experience for players, particularly those residing in the UK, is very different indeed, as no doubt those reading this will be able to attest to first hand.
Over the past several years, take the UK Gambling Commission (UKGC) for example, which has introduced a raft of regulatory changes for licensees of online gambling operations. These are all designed to make gambling safer, protect vulnerable individuals and ensure licensed operators conduct their businesses responsibly.
However, these changes have had very real implications for players, the customers of the online casinos. From the introduction of Source of Wealth checks, the obligatory Know Your Customer and Enhanced Due Diligence checks. Players have been given more and more hoops which they have to jump and navigate through.
Then there are the removal of 'features' or restrictions placed on operators. Say goodbye to the Autoplay feature, maximum bet limits smash downwards to a couple of pounds and not forgetting the removal of many games that in the UKGC’s view appeal to minors!
Now, I am certainly not going to argue against the need for regulation. Far from it. Having spent many years working in the industry, I know only too well what can happen when casinos are allowed to operate without proper oversight. Indeed, this very forum has sadly seen many a bad situation play out in real time.
However, there is a question that I believe deserves asking.
Has the balance between protecting players and allowing them enjoy gambling as a form of entertainment shifted too far in one direction?
Know Your Customer (KYC)
Let's start with something that virtually every online casino player will have encountered at some point. Know Your Customer, or KYC for short.
The principle behind KYC is perfectly reasonable. Casinos need to establish that their customers are who they say they are, that they are old enough to gamble and that they are not using their accounts for fraudulent or criminal purposes.
I don't think anyone can seriously argue against that.
However, the way KYC is implemented can sometimes leave a lot to be desired.
How many times have we seen complaints from players who have been happily depositing and playing at a casino, only to find that when they request a withdrawal, they are suddenly asked to provide additional documentation?
Passports, driving licences, utility bills, bank statements and sometimes even photographs of themselves holding identification documents.
For further information check out the following page on the UKGC site:
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Source of Wealth (SOW)
You think you have successfully hurdled all the obstacles in front of you having completed the KYC process satisfactorily only to be hit with the next regulatory mandatory obstacle, in the form of the dreaded Source of Wealth request.
This ‘feature’ is triggered once you have crossed an arbitrary financial figure in the form of deposits and the forensic information requested by the operator, can seem more intrusive than a HMRC or IRC compliance check on your tax affairs.
Admittedly there are good reasons as to why it is in place, to protect vulnerable individuals, but the details required from players is to be blunt, a massive invasion of privacy.
While I appreciate that casinos have legal and regulatory obligations to fulfil, I can also understand why some players are extremely uncomfortable handing over detailed financial information to a gambling operator.
The following link from the UKGC site, explains when a source of wealth check is required:
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The LCCP and the Increasing Responsibilities Placed on Operators
LCCP stands for Licence Conditions and Codes of Practice. For full details whereby you can search all the rules, visit:
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Essentially, these are the rules and requirements that gambling operators licensed by the UKGC must adhere to.
They cover a wide range of areas, including customer protection, anti-money laundering, marketing, complaints handling and safer gambling.
Failure to comply can result in substantial financial penalties and, in serious cases, the suspension or revocation of an operator's licence.
Consequently, it is hardly surprising that casinos take these requirements seriously.
However, one consequence of increasingly stringent regulation is that operators may adopt an extremely cautious approach when dealing with their customers. We have seen this happen time and time again.
So rather than risk falling foul of the UKGC, some operators may choose to implement restrictions or additional checks that go beyond what a particular customer's circumstances might reasonably warrant.
From the casino's perspective, this may be understandable. From the player's perspective, however, it can be incredibly frustrating. Notwithstanding the fact that different operators may implement the LCCP differently from each other.
The Removal of Autoplay
Arguably one of the most contentious moves the UKGC have made that has had a direct impact on players, is forcing the removal of the autoplay facility from all online slot games.
Indeed when this came about Nik Robinson of Big Time Gaming even created this thread https://www.casinomeister.com/forums/threads/removal-of-auto-spins-with-ukgc.93990/ on the Casinomeister Forum, discussing this.
I do not know any slot player that did not use the autoplay function, I mean I even use it playing slots in land based casinos.
Its removal will not curb the issue of problem gambling, but it will detract from the entertainment playing slots provides players. Of which the vast majority gamble responsibly and pay to enjoy this pastime.
This is part one of a two-part series of articles that covers regulatory compliance. With the second part looking at other measures taken such as the removal of the ‘Reverse Withdrawal’ facility.
Have measures introduced such as Source of Wealth requests and the removal of autoplay made you stop in your tracks and reconsider playing at casinos operating in regulated jurisdictions? Let us know…
