Gambling powerhouse Flutter Entertainment has implemented a monthly cap on its younger customers’ losses as the industry is facing mounting pressure to do more to protect vulnerable people and help problem gamblers.
The company has introduced the gap on Sunday to prevent customers under 25 in the UK and Ireland from losing more than £500 or €500, respectively, each month.
Flutter pointed out that about 5% of its 750,000 UK and Irish customers into the above age category would sometimes be affected by the new monthly cap.
Of the new measure, Flutter Head of UK and Ireland Conor Grant said that the “risk regulation” in the brains of under-25s is not fully developed and that the cap aims to encourage “an evolution of sustainable spending.”
Mr. Grant went on to note that the newly imposed limits are “not a target” but a backstop and that there is a “very fine balance for us in providing the safety net and dictating what customers can and can’t do with their own money.”
News about the monthly cap on losses emerge after Flutter CEO Peter Jackson said last month during the company’s H1 earnings call that they plan to continue to strengthen their responsible gambling policies by developing initiatives that are tailored to meet the requirements of specific markets.
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It was also not long ago when Flutter announced that it has deployed technology to avoid targeting its under-25 customers with ads of its products on social media.
The company has been introducing initiatives toward providing safer services amid an ongoing review of UK gambling laws and regulations and amid damning criticism that operators are not doing enough to help those whose lives have been severely impacted by their gambling habits.
UK-licensed gambling companies have recently committed to a whistle-to-whistle ban on wagering ads, while the Gambling Commission has introduced a ban on credit card gambling as part of the sector’s efforts to appease MPs and other staunch critics.
Earlier this year, Flutter agreed to voluntarily implement the above measures in the Irish market. The Irish Bookmakers Association announced last week that all its members would follow suit by the end of the year.
With a portfolio of multiple international brands, including Paddy Power, Betfair, PokerStars, Sky Betting & Gaming, and FanDuel, Flutter is one of the world’s largest gambling operators. The company has also been focusing a lot of its efforts on expanding in the lucrative US sports betting space where its FanDuel business has been maintaining the lead in terms of market share.
The US-focused brand was expected to float on the New York Stock Exchange this year, but Flutter pushed back that plan to 2022 amid managerial changes and a legal row with Rupert Murdoch’s Fox Corporation.
Source: Flutter imposes €500 cap on monthly losses for gamblers under 25, The Times, September 5, 2021