Online Bingo Regulation in the UK

With the rise of the new millennium and the availability of high speed broadband, playing Online Bingo has become a cultural phenomenon in the UK.  While Online Bingo may seem like a benign form of simple fun, there have been sufficient concerns about the nature of Online Bingo that the UK decided to regulate the game under the Gambling Act of 2005.

Current estimates show that more than 3 million people play Online Bingo in the UK, and currently there are more than 250 Bingo websites offering the game to UK Bingo players.  It is estimated that over 600 million pounds is spent annually in the UK for Online Bingo tickets.  Online Bingo marketers see immense potential for explosive growth in the number of people playing Bingo online, and see Online Bingo as a lucrative business opportunity.   

For Online Bingo players, much of the game’s popularity is attributed to immediate access to play and the ability to access play conveniently from any computer at any time.  For younger people especially, Online Bingo provides more mental stimulation than the traditional form played in Bingo halls because it moves at a much more rapid pace.  Between the rapid pace of Online Bingo and the ability to play more rounds than can be played in the same amount of time in the Bingo hall, and the significantly greater winnings involved, many people see the potential for a much bigger return on their investment of time and money as well.

Since only one percent of all Bingo players play online, the UK wanted to put its Gambling Commission in the forefront as the Online Bingo industry was developing to head off potential dangers to citizens.  Thus, the UK Gambling Commission, which is part of the Department for Culture, Media and Sport, oversees Online Bingo regulation, was chartered to monitor gaming fairness, prevent crime within the industry, and keep vulnerable adults and children safe.

The potential for gaming unfairness was seen from the beginning as quite significant.  This is because in the traditional Bingo hall, there are many eye witnesses as to how the game is administered.  This is not the case when one is interacting with a computer screen and interfacing with a software program.   As part of the licensing process, Online Bingo sites are required to prove that the games they offer are fair and tamper proof.  This has prompted most online Bingo sites to go to expert software developers and to license their software. 

Regulators also saw significant potential for credit card fraud with Online Bingo early on.  In the earlier days of Online Bingo in the mid-1990s, credit card fraud and identity theft in general were more prevalent than they are today.  Nonetheless, since there are so many credit card transactions involved in playing Online Bingo, the potential for fraud is always a danger.  As part of the licensing process, Online Bingo sites must show proof that credit card information provided by players is transmitted and stored in a secure manner through encryption and password protection.

Defrauding people of their rightful winnings was also seen as a possibility by the crafters of the Gambling Act of 2005.  In order to be and stay licensed, Online Bingo organizations are required to prove that they have sufficient operating funds to operate the Bingo site smoothly.  This means they must be able to process withdrawals for player winnings in a timely way, and they must provide full disclosure of the details of terms and conditions of any prizes, promotions and bonuses.

From the beginning, Online Bingo was seen as ripe for “Money laundering”.  Money laundering is the process of disguising illegal sources of money so that the money appears to be coming by legal means.  While the methods by which money can be “laundered” through criminal exploitation are quite varied, Online Bingo via the internet offered a relatively unprecedented level of sophistication that regulators saw the need to head off.  For this reason, Online Bingo organizations are required by law to make their financial records available for inspection at any time, and their financial records are to be audited regularly by auditors who are not part of the organization.

The demographics of Online Bingo players also created concern about potential dangers involved with Online Bingo.  Of the over 3 million people in the UK who now play Online Bingo, the game is most popular with young people.  While younger people tend to be very computer literate and thrive on the concentration and fast pace offered by Online Bingo, many who want to play are not of legal age.  It is also noteworthy that the vast majority of Online Bingo players are young women.  In view of the fact that most Online Bingo sites also have a chat room to facilitate the social aspect of the game, there is potential for harassment and unwanted solicitation to take place.  For this reason, most sites have chat room rules that must be abided by.

In the UK, one must be at least 18 years of age to participate in interactive gambling sites.  For this reason, the Gambling Commission has put strict guidelines into place so that Online Bingo organizations must verify player identity.

The kind of information Online Bingo organizations are required to obtain and authenticate include:  name, date and place of birth, a telephone number or e mail address, and a residence address.  The information provided is then subjected to a variety of third party verification checks.  Depending on how the information provided by the player compares to the third party knowledge base, the site will either allow or deny site access.

Lastly, Online Bingo is a game that is easy to become addicted to, particularly in view of how large cash prizes are becoming.  Since Online Bingo provides such high-speed gratification, one of the Commission’s goals is to educate and to try to prevent compulsive gambling.  As a result, many Bingo sites contain educational material and resource that their players might not otherwise become aware of.