Gambling Commission launches social games investigation
UK regulator begins gathering data to investigate whether adequate controls for player protection are in place
The UK Gambling Commission has begun an investigation into the potential risks posed by social gaming, submitting a call for social gaming operators to supply player data to aid the study.
The regulatory body explained it was looking to ascertain whether the growth of the industry “posed risks to the public” and if so, whether “adequate protections are already in place”. The Commission has begun gathering evidence, opening discussions with the Responsible Gambling Strategy Board and regulators in other territories that have already started investigations into the industry.
It explained in a statement it would “only want to advise the government to bring social gambling within scope of gambling regulation” if it the risks posed could not be addressed by three key areas. These were listed as: self-regulation by the industry, use of existing consumer protection bodies such as those of The Office of Fair Trading and advertising watchdogs Ofcom and the Advertising Standards Agency.
Operator bodies the Social Gaming Association (SGA) and International Social Games Coalition (ISGC) have both pledged to aid the investigation.
SGA director Stuart Tilly said his association “firmly supports the balanced and considered approach taken by the Commission in its attempts to understand the social gaming industry”.
“We welcome the opportunity to assist the Commission in seeking to address any consumer protection concerns raised in the report through the provision of more detailed and targeted data,” he added.
ISGC chief executive Luc Delany also welcomed the report, saying he looked forward to further research into free-to-play social games and gambling that will “help dispel any confusion there may between what are two very different experiences”.
However, Delany warned against the term ‘social gambling’ to describe free-to-play social casino games, saying that “it is completely wrong” to describe the genre in this way.
“People can play social games and pay if they choose for additional features which add excitement, but this is optional and completely different from gambling “ which involves a stake and the ability to cash out,” he explained.
The launch of the investigation comes after the Office of Fair Trading (OFT) began its own inquiry into social games developers’ marketing strategies in April this year. The OFT aims to monitor whether mobile games include “direct exhortations” to prompt the player to make a purchase, or perform an action that would force them to make an in-game payment. Should developers be found guilty of doing so, they will be in breach of the Consumer Protection (from Unfair Trading) Regulations 2008.
Reports in the British press last year suggested the Gambling Commission might look to enforce some form of regulation, though these were later rejected by a spokesman, who said the regulator was merely “monitoring” the sector.
“The gambling industry is innovative and technological advances are testing the boundaries of the Act. We monitor what is going on across a wide range of activities, whether on-line or terrestrial, including social gaming sites, to ensure that unlicensed gambling “ as defined by the Act “ is not taking place,” the spokesman said at the time.