The UK’s gambling industry is recognized the world over for being one of the best and well-regulated, helping industry growth and protecting potentially vulnerable customers. However, news that the regulatory body that oversees the industry, the Gambling Commission, has made deals with betting firms to keep failings out of the public eye has been met with criticism.
The UK’s Gambling Commission has robust protections for consumers and its comprehensive regulatory framework covers retail and online gambling operations. All online operators licensed in the UK must sign up to the voluntary self-exclusion program Gamstop, however this can lead to long sign-up processes for consumers.
Not all UK bettors want their personal information stored across multiple websites, and a growing trend for sites with no ID needed has emerged. Online gambling expert Andjelija Blagojevic explains that no-KYC betting sites allow users to make crypto deposits to play with, improving personal data security, speeding up transaction times, and avoiding costly fees and exchange rates.
News that betting firms have been able to avoid negative publicity following regulatory failures could also be bad news for UK operators. It has come to light that the Gambling Commission has come to an agreement with operators in some cases to place them into special measures rather than face formal action.
Formal action for regulatory failures can include the loss of licenses and fines, and the failings are made public which can lead to reputational harm. Introduced in 2020, the Gambling Commission’s special measures allow operators to agree to urgent action that tackles the failings. The opportunity to donate proceeds from failure to comply with regulations to good causes can also help the operator’s case.
This scheme was implemented as a way to ensure operators get back on track and are only offered if the risk to consumers is limited or non-existent. Betting companies must accept the failings and it is not applicable for operators with a history of non-compliance.
The Gambling Commission sees these measures as a middle ground that allows operators to accept failings and make the necessary changes. They have explained that special measure activities are not automatically published as their purpose is to achieve quicker results without having to resort to exercising regulatory powers on a formal level.
By having a threshold where they don’t publicize interventions and exercising a range of measures, the Gambling Commission believes it is in a better position to act accordingly and streamline results.
Campaigners argue that vulnerable customers should be made aware of regulatory failings with some legal challenges being taken to court.
The Gambling Commission has the luxury of covering all of Britain through its regulatory framework. While there are some questions about this specific case, their rules have made it easier for betting operators to set up in the UK.
In comparison, the US and Canada have vastly different regulations for gambling by state and province. Different regulatory bodies are in charge of different markets and this can lead to confusion for consumers and businesses looking to expand in these regions.
As things stand in the UK, the Gambling Commission could be forced to revise its current system of allowing operators to keep failings private in some cases. However, it has already dug its heels in when asked about revenue figures or surrendered monies and has also denied a freedom of information request over fears that divulging this information could harm its relationship with operators and its willingness to volunteer information in the future.
The UK gambling industry generated $18.7 billion in 2023 and is a major source of revenue through taxation and licensing. Almost 100,000 people are employed in the industry and the government and Gambling Commission will be keen to avoid any regulatory changes that could harm this.