Insider Insights Into Leading One of the World’s Central Gambling Jurisdictions

Speaking at the March 2024 Swedish Gambling Regulator Conference, Sarah Gardner, Deputy Chief Executive of the Gambling Commission (UKGC), expounded on their actions to strengthen British online gambling and some areas where it has fallen short.

With a market that has grown by 6.6% from April 2022 to March 2023 and a total Gross Gambling Yield (GGY) of £15 billion (with the online gambling niche being worth £6.5 billion) for the first time since its regulation, what she has to say is worth hearing.

More Details Decisions Are Made for Impact, Not Popularity

With one of the world's largest and most successful gambling jurisdictions to caretake, Gardner broke down the metrics they review and the activities the organisation has led to ensure it survives and thrives.

✓ Seek Stability, Not Spikes:

The Gambling Commission pays close attention to the number of active players across short, medium, and long periods. Remarking on the recent player behaviours for the year to March 2023, she said:

Quote

“The participation rate for in-person gambling also remained statistically stable at 27%, although this figure remains below the pre-pandemic level of around 35%. The online gambling participation rate also remained statistically stable at 26% compared to March 2022.”

Gardner explained that these stable participation rates mean the UK has around 22.5 million active players monthly. Ensuring these players can gamble within safe financial limits means ongoing revenues that do not stress local finances or increase the risk of problem gambling.

✓ Set Clear and Enforceable Guidelines:

Gardner explained that “minimising the risk of harm is a key licensing objective” for the UKGC. This significantly impacts the formulation of the Licence Conditions and Codes of Practice (LCCP), a set of regulations determining how licensees are allowed to market their games of chance and other gambling products in this mature market.

The Commission has harnessed the impact of fines and penalties to keep operators in line:

Quote

“In the financial year of 2022 to 2023, the Commission concluded twenty-four enforcement cases with operators paying over £60m because of regulatory failures.”

The maturity of British gambling means that it is not easy to grow or gain market share, which means that operators need to be directed to become innovative and stand apart based on excellence, not just bigger welcome bonuses and enticing promotions.

Facts Enhanced Compliance and Enforcement

To ensure that the laws and regulations of the Gambling Commission stay in step with changes in technology, macro market conditions, and the lessons learned from managing operators, the organisation has an operations team optimising the Compliance and Enforcement guidelines.

Quote

“Better data and evidence will lead to better regulation and, in turn, better outcomes for everyone associated with gambling.”

To continually improve their research, evidence and data and strengthen operator guides, the regulator has invested in data analytics and established three Expert Groups comprising a Digital Advisory Panel, a Lived Experience Advisory Panel, and the Advisory Board for Safer Gambling.

Some of the practical outworkings of these initiatives have been:

Improvements in enforcing player age verification before deposits are accepted or bets can be placed.
Limiting the harmful enticements associated with ‘VIP schemes’ and banning in-game compulsive gambling triggers like autoplay.
The banning of credit card gambling in online casinos and physical gambling and betting venues.

These panels draw on the strengths and insights of experts from academia, digital and technology sectors, and individuals who have personally dealt with addiction and gambling harm to help create a safer and more inclusive environment.

Alert UKGC Focus Areas For 2024 and Beyond

While Gardner was bullish about the good that the Gambling Commission has accomplished, she did highlight some areas where the regulator and its supporters had vital work to do.

The three most impactful of these are:

The Gambling Act Review: “[It] provides a once-in-a-generation opportunity to deliver positive change for gambling in Great Britain and for all people impacted by it. This is a very large programme of work which is at the top of our current priorities.”
Multilingual Collaboration: “The Gambling Commission’s commitment to international collaboration hasn’t yet stretched to helping our staff become as multilingual as we should be in the modern world.”
Financial Risk Checks: “We are not quite ready to publish the full response yet that will chart how we implement Financial Risk Checks in full - we are committed to conducting a pilot before we mandate changes in this area.”

Gardner also addressed the fact that the Commission is focused on addressing the issue of illegal online casinos, and while they do not deny their impact on the market, they are not willing to lower their standards in response to fears that their regulations will drive players unregulated offshore gambling sites.