Turbulent times ahead: UK online gambling market braces for regulatory reform

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It’s not like the UK doesn’t have enough on its plate following the recent Prime Minister Liz Truss resigns after only 44 days. During his short tenure at No. 10, Truss caused his fair share of disruption. Among his many controversial decisions was that the UK no longer needed GDPR. To be fair to Truss, however, it wasn’t a radical idea as such. This is something that has been debated since Brexit has been on the agenda. The only difference now is that it seems to be becoming a reality.

This week, Michelle Donelan, UK Secretary of State for Digital, Culture, Media and Sport (DCMS), confirmed that the UK is planning to replace the EU’s data privacy law with its own set of rules. Security and data protection are issues that the gaming industry has been committed to for a long time, given the nature of the sector. However, it looks like things for gaming operators are about to get significantly more complicated as they are forced to deal with two different data privacy systems.

Let’s examine these implications in a bit more detail.

Brexit – The complicated split between the UK and the EU

The UK’s transition out of the EU has been far from smooth and has been complicated by the COVID-19 pandemic, which started around the same time the process was due to begin. This decision to abandon the GDPR is not new. In fact, the UK announced that it planned to drop this bill and go its own way four months ago. It’s really just another way for the country to cut ties with the EU.

As it stands, the UK is planning to introduce its own Data Protection and Digital Information Bill at some point, but none of the details have been made official yet, and it seems that the process will take longer than expected, especially given the constant change in management.

Even though the creation of these data protection rules in the UK has been in the works for some years, the general concepts had to be in line with the original EU guidelines.

As the UK grapples with the post-Brexit transition, it is evident that the country is going through difficult times due to economic strife. The choice to leave the EU’s GDPR program further complicates matters, especially for game providers. Senior Writer and Casino Expert at NoDeposit365, Tim Wrightexplains his concern about the foreseeable future of this jurisdiction:

“As a senior editor, my duty is to continuously monitor and greenlight what is published on our site, because content is and always will be the crucial element of a website. In 2018, when GDPR has been implemented and enforced, our team have worked tirelessly to update every page of our site to reflect these regulations Now that the UK is no longer an EU member state, it There are many gray areas that need to be clarified, so we are not only aware, but able to be fully compliant.

Justifying the UK’s derogation from GDPR

Although the UK’s abandonment of the GDPR has serious consequences for industry, the Secretary for Digital, Media, Culture and Sport justified the government’s decision by saying that the data protection system from the UK would aim to balance consumer privacy and security while allowing businesses to retain data in a way that allowed them to trade freely.

Donelan actively tried to temper concerns about the changes by citing examples from countries like New Zealand and Japan to highlight how consumer data could be protected without the need for far-reaching regulations like those presented in the GDPR.

To win over business interests, she said the move will help create a better business environment conducive to growth. However, companies seem unconvinced, with many business leaders expressing frustration that they now have to comply with multiple sets of rules that are likely to have negative implications for their bottom line.

The shortcomings of the GDPR

The introduction of GDPR in 2016 was met with enthusiasm and positivity. Many have considered it one of the greatest achievements in modern history. It was predicted that the GDPR could save Europe billions of dollars and promote more efficient operations across the continent.

However. 6 years later, the lived reality has been markedly different and not in a good way. For example, a recent survey conducted by the University of Oxford point out that companies in the EU have suffered lost profits of 8.1% on average since the adoption of the GDPR. While large companies were better placed to deal with the consequences, they still lost around 7.9% of their profits, while SMEs were hit harder, with average losses of 8.5%. Even big tech giants like Apple, who expected to benefit, saw no significant impact from GDPR implementation.

The last word

Considering all of this, the future does not look so bright for businesses operating in Britain. With the UK government opting to get rid of the GDPR as part of the divorce from the EU, along with outsized inflation rates, things don’t bode well for the UK economy.

However, the silver lining here is that the pace of change is likely to be slow when it comes to the introduction of the UK’s data protection system. Additionally, with the government’s future currently up in the air, a general election could be on the cards sooner than expected, which could mean the legislation is stopped in its tracks.

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