UK Gambling Commission Discusses Industry Reform, Regulation and the Way Forward

In a speech at the Westminster Media Forum, Ian Angus, Director of Policy at the Gambling Commission, discussed the potential reform of UK gambling regulations and new customer protection measures to ensure player safety.

With more than 44% of British adults playing games of chance and placing bets to the value of £14.1 billion annually, the sector's security, management and maintenance are vital to the country.

Join us as we delve into his concerns about the state of the gambling industry, his views on where the Commission needs to improve its operation, and how to combat the dangers of compulsive gambling.

 Fines Are a Failure, Not an Income Source

The ongoing narrative in many publications is that gambling jurisdictions see the massive fines they seem to dole out far and wide as just another revenue stream. However, Angus sees them as a way to track where the industry is failing.

In his speech, he said:

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“Sadly though, as a result of operators failing to comply with our rules and meet our standards, the last year has also seen the largest penalties that operators have ever had to pay.”

He also adds that "the numbers tell part of the story", which refers to the incredible leap in the value of fines incurred by regulated online casinos and gambling portals. In the 2016/2017 financial year, total fines amounted to £1.7 million. By the end of 2022, this amount had skyrocketed to £76 million.

He explains why this is a sad condition for a regulated market to be in:

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“The reason we’ve been forced to escalate our enforcement action like this in recent years is that each failing is not just a failing against our rules; it’s a failing for ordinary people, some of whom have suffered terrible harm as a result.”

His examples of the human face of these failed systems include players who were allowed to spend anywhere from £23,000 up to £70,000, some on the same day their accounts were opened.

Angus closed this part of his speech with a warning, “failings like this cannot continue”. This a caution that licensed casino operators and those overseeing departments within the Gambling Commission would be wise to take to heart.

 Growth Requires Widespread Collaboration

Angus acknowledged that the Gambling Commission has historically been wary of collaborations, preferring an us-and-them approach. He noted that this way of thinking needs to be updated, and the regulator recognises that collaboration is the most direct path to the results they want.

Internally this began with the “Industry Challenges” initiative, where he led a team which focused on in-country partnerships in the Ad-Tech space. This project was the driving force behind enhanced youth protection structures, locking down predatory VIP programs and ensuring that casino games were appealing to an age-appropriate market segment.

He also added how this internal success opened doors for cross-border initiatives:

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“Over the past year, we have stepped up our engagement with other gambling regulators around the world, sharing best practices and experiences and discussing how we can work together and support each other in our own jurisdictions to achieve safer, fairer, and crime-free gambling.”

In this scenario, the player is the winner, as one regulator highlights bad actors and their practices are then shared with all the collaborating members. This allows these regions to proactively stop these operators from exploiting their citizens.

The power of this level of global mobilisation is evident in the following statement:

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“To be clear: No operator should want to be in this position. No operator should want to be the subject of discussion between regulators in different parts of the world.”

Recent successes in addressing black market operators and increased market channelisation have prioritised cross-border collaboration in the UK.

 Looking Ahead Towards a Bright Future

While the long-awaited whitepaper is underway, the Gambling Commission is continuing to strive for a robust, safer, and more appealing gambling industry. At the core of this drive are the three principles that the Commission CEO, Andrew Rhodes, has branded the ‘Commission Story’.

These three principles now underpin everything the Commission does:

1. Putting people first
2. Doing the right thing
3. Regulation that works for all

This new mandate is having a demonstrable impact on a variety of channels and projects, which include:

✓ Collaborating with the BGC and ICO on the Single Customer View.

✓ Developing new methodologies for addressing Participation and Prevalence statistics.

✓ Piloting new methods for interpreting gambling-harm data.

The Commission believes investing in market data will better equip it to help at-risk consumers, seek out non-compliant operators, and bolster the industry to ensure longevity.

In closing, Angus reiterated their Commission’s customer-first view of the sector, saying:

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“And we want to continue by working with gambling operators, as well as others, to make more progress more quickly. But compliance is the first step. Where operators continue to fail in their obligations, we will continue to take uncompromising action.”

This, he claimed, will be how they protect and serve the twenty-two million Britons who enjoy gambling and deserve to do so with complete peace of mind.