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Andrew Rhodes Confirmed as Permanent CEO of the Gambling Commission
By Jeff Osienya May 30, 2022 IndustryThe UK Gambling Commission has officially appointed Andrew Rhodes as its permanent CEO, following his service in an interim capacity for nearly a year. Along with Chairman Marcus Boyle, Rhodes is keen on implementing tighter gambling industry regulations.Andrew Rhodes has finally been confirmed as the new permanent UK Gambling Commission (UKGC) CEO after holding the post in the interim since June 2021. His initial appointment as the interim boss came on the back of the resignation of Neil MacArthur, who had to exit after a 15-year stint in the face of the Football Index debacle. Following his appointment, Rhodes was handed an ambitious task of stabilizing things as the UK regulator went through a transitionary process. However, his interim appointment came with an 18- month contract as the gambling ombudsman sought a suitable permanent replacement.
When he joined the Commission last year, Mr. Rhodes was backed by a remarkable 20-year portfolio in the private and public sectors. Before assuming the interim UKGC CEO role, he was the Registrar and COO at Swansea University. Before his time at Swansea, Rhodes had held other senior positions in many top organizations, including the DWP (Department for Work and Pensions), FSA (Food Standards Agency), and the DVLA (Driver and Vehicle Licensing Agency).
A New Era for Britain’s Gambling Regulator
The confirmation of Andrew Rhodes marks one of the vital steps that the UKGC has taken as it edges closer to a new era of regulatory revamp. In his role as CEO, Rhodes will work closely with Chairman Marcus Boyle, who has been advocating for tighter gambling oversight in the UK. Still, it’s crucial to bear in mind that the push for stricter regulations has been on the watchdog’s agenda even during Rhode’s interim CEO phase.
So thus far, he has been instrumental in providing vital insight to the government for its completion and publication of a White Paper on the 2005 Gambling Act review. The White Paper was due to be published before the end of 2021, but the cabinet reshuffle that saw Chris Philip replace John Whittingdale as the gambling minister pushed the publication to early 2022. Rhodes also spearheaded the ombudsman’s agenda of ensuring that gambling advertising was banned for high-risk customers. And on top of that, in his interim spell, he also oversaw the Commission’s fourth competitive bidding process for the new National Lottery operator, where Allwyn UK edged out Camelot Group.
From what industry insiders are saying, the confirmation of Rhodes was never really in doubt, and rumors of his permanent appointment had started flying as early as January. Now that it’s official, Rhodes has been tasked to work alongside Chairman Boyle and other Commission colleagues to ensure that the UK gambling sector is “regulated strongly and effectively.” Additionally, the newly confirmed UKGC boss will continue running his stakeholder engagement program alongside industry operators, consumers, parliamentarians, and individuals with ‘lived experiences.’
During the review of the 2020/2021 gambling enforcement period in December, Rhodes voiced satisfaction with how industry oversight was conducted that year. Nevertheless, even though he was impressed, he expressed his disappointment that such strict enforcement was necessary. He said in part:
Quote“As Great Britain’s regulator for the gambling industry, we still see far too many breaches of regulations where everyone in the industry agrees we should not see them. The industry has the resources, skills, and knowledge to change this.”
Nonetheless, in his statement at the time, he mentioned that the gaming watchdog would consider taking a tougher stance in its regulatory work. Now, with his permanent appointment, Andrew Rhodes is getting the ball rolling on with a series of hardnosed commitments that could see a lot of change in the gambling space in the UK.
Chairman Boyle Joins Rhodes in Calling for Radical Reforms
Both the CEO and Chairman Boyle have made it clear that the gambling sector is in for a tighter regulatory revamp. In fact, Boyle recently wrote an op-ed in the New York Times voicing support for Rhodes and echoing his concerns about ‘persistently failing operators.’ In the op-ed, he suggested setting up a tougher oversight environment for operators who are constantly on the wrong side of the codes of conduct. Based on his observations, it appears that the Commission’s long-standing approach that has heavily relied on issuing fines is not working.
Mind you, £130 million worth of fines has been imposed on operators over the last 5 years. Moreover, over the past financial year, an annual record of £32.1 million in fines was paid to the regulator by 15 UK gambling operators. So instead, Chairman Boyle proposes introducing cumulative sanction packages that will carry more weighty financial implications. These sanction packages will be pegged on the percentage of profits and will implement long-term license suspensions. He said:
Quote“We will not tolerate an attitude of lowest possible compliance being sufficient. We expect our license-holders to genuinely commit and learn from failings. Licenses will be withdrawn where standards are not met, meaning that individuals could not hold senior positions in the industry. License-holders should aim for the highest standards.”
On top of the financial sanctions, Boyle also wants a new best practice study to be implemented. Boyle believes that this study will guide the regulator in making more meaningful steps toward taking accountability for high-risk gambling. The study will also develop an algorithm that should help the gambling operators in the UK identify high-risk gambling. That way, better recommendations will be made after specific high-risk gambling behaviors are identified more efficiently. The measures proposed include conducting soft credit checks when assessing the affordability of a user and a greater emphasis on the links between gambling and suicide.
Along this same line, Boyle wants to see an introduction of an independent standards audit body and for there to be an extension of the official accreditation of operators. He believes that this measure will ensure more mindful compliance among the said operators.
There is also a push by Boyle to expand the UKGC’s technological capabilities- a move that will no doubt increase the number of checks the operator can conduct. Additionally, from how Boyle sees it, by expanding technological capabilities, the regulator will also be better equipped to monitor and take action against the black market.
Solid Ground Set for the UK Gambling Act Review
Now that the UKGC is set leadership-wise, it looks as though the start of the UK Gambling Act review will be a seamless process. The review was initiated by the Department for Digital, Culture, Media, and Sports (DCMS) amid increasing concerns over the mounting problem gambling issue in the country and exposure to children through advertising and football sponsorships.
According to some observers, it is particularly reassuring that even before the UK Gambling Act review commences, the two people at the helm of the Commission are championing the much-needed changes. So, for now, we just have to wait and see what changes will be introduced by the long-awaited regulatory overhaul for the UK gambling sector.
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