UK and Ireland
Flutter Entertainment's UK & Ireland arm launched on September 6th a new £500 maximum monthly deposit limit for all customers under the age of 25.The new measure will apply across Flutter’s Paddy Power, Betfair, and Sky Betting & Gaming brands in the UK and Ireland.
Flutter said the limit is based on a recognition that early adulthood is characterised by a range of major life changes. It aims to bring its operations into line with businesses in other areas that recognise this, similar to the way finance and car insurance companies recognise younger customers have a higher risk profile.
The operator said its own research suggested support for the scheme, with 77% of regular gamblers approving additional measures for younger people, while 78% of 18-24-year-olds polled backed the new restrictions.
Ivan Kurochkin’s comments
One of the largest international gaming companies, operating through a multitude of well-known brands across the world, voluntarily limited the maximum size of deposits for its clients in the UK and Ireland, who are less than 25 years old.
The news is extremely interesting because of the initiative to introduce responsible gaming mechanisms that seriously affect the operators' profits that doesn’t often come from the operators themselves (which is generally not surprising).
A good example of curbing the potential reluctance of operators to limit the size of deposits in any way is the regulation in Germany, where legislators limited the size of deposits for all players that use licensed operators. This restriction caused a large amount of negative feedback from the operators, since such a restriction quite seriously affects the financial model for entering the market.
In this regard, it will be extremely interesting to observe Flutter, and find out whether the deposit restriction comes as a voluntary decision or some events (e.g. the review of the UK Gambling Act) influenced the operator's decision to limit its profits in these regions quite seriously.
In any case, this step is a clear example of how a responsible gambling mechanism of limiting the size of the deposits can and should work, however, it is crucially important for such a mechanism to be fine-tuned to cater for both sides of the business — the bettors and the operator alike.
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