It’s not as if the UK hasn’t got enough on its plate following the recent resignation of prime minister Liz Truss after just 44 days. Within her short tenure at No.10, Truss caused her fair share of disruption. Among her many contentious decisions was that the UK no longer needed the GDPR. To be fair to Truss, however, this wasn’t a radical idea as such. It has been something that has been debated for as long as Brexit was placed on the agenda. The only difference now is that it looks like this is actually becoming a reality.
This week, Michelle Donelan, the UK’s Secretary of State for Digital, Culture, Media and Sport (DCMS), confirmed that the UK had plans to replace the EU’s data privacy act with its own set of rules. Data security and protection are issues that the gambling industry has demonstrated a commitment towards 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 contend with two different data privacy systems.
Let’s look at these implications in a little 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 was complicated by the COVID-19 pandemic, which kicked off at around the same time the process was due to begin. This decision to ditch the GDPR is nothing new. In fact, the UK announced they had plans to scrap this piece of legislation and go their own way four months ago. It really is just another way for the country to cut ties with the EU.
As it stands, the UK is looking to introduce its own data protection and digital information bill at some point in time, but none of the details has been formalized as yet, and it looks like the process will take longer than expected, especially given the constant change in leadership.
Even though the creation of these rules of data protection in the UK has been in the pipeline for a couple of years, the overall concepts were expected to be in line with original EU guidelines.
As the UK grapples with the post-Brexit transition, it is evident that the country is facing trying times due to economic strife. The choice to leave the EU’s GDPR program further complicates things, specifically for gaming providers. Senior Writer and casino expert at NoDeposit365, Tim Wright, explains his concern with this jurisdiction’s foreseeable future:
‘As a senior writer, my duty is to constantly monitor and greenlight what’s published on our site because content has and always will be a website’s crucial element. Back in 2018, when GDPR was implemented and enforced, our team worked tirelessly to update every page of our site to reflect such regulations. Now that the UK is no longer an EU member state, there are many grey areas which need to be clarified, so we’re not only in the know but are able to be fully compliant.’
Justifying The UK’s Departure From The GDPR
Although the UK abandoning the GDPR has severe implications for industry, the secretary for digital, media, culture and sport justified the government’s decision by saying the UK’s data protection system would aim to balance consumer privacy and safety while allowing businesses to retain data in ways that allowed them to trade freely.
Donelan has 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 stressed that this move would help create a better business environment that was conducive to growth. However, businesses don’t seem convinced, with many business leaders expressing their frustration at now having to comply with multiple sets of rules which will likely have negative implications for their bottom line.
The Shortcomings of the GDPR
The introduction of the GDPR back in 2016 was met with enthusiasm and positivity. Many deemed it to be one of the greatest achievements of modern history. It was envisaged that the GDPR could save Europe billions of dollars and promote more efficient operations across the continent.
However. 6 years down the line, the reality experienced has been markedly different and not in a good way. For instance, a recent survey carried out by Oxford University highlight that business across the EU suffered profit losses averaging 8.1% since the adoption of the GDPR. While bigger companies were better placed to weather the implications, they still lost around 7.9% of their profits, whereas SMEs were harder hit, with losses averaging 8.5%. Even large technological giants like Apple, who expected to benefit, saw no significant impact from the implementation of the GDPR.
The Final Word
Bearing all of this in mind, the future doesn’t look so bright for businesses operating in Britain. The UK government choosing to dump the GDPR as part of the divorce with the EU, along with inflation rates that are off the charts, 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. Furthermore, with the future of the government currently up in the air, a general election may be on the cards sooner than we thought, which could mean the legislation is stopped in its tracks.
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