Opening remarks from the Chairperson outline the rapid progression of the regulated online market, AI technologies and the evolving regulations which encase them. Margarita Cruz underscores the diverse and changing nature of global gambling regulations as part of her keynote conference introduction.
Posing key questions around compliance, player protection and non-intrusive responsible gambling checks - Cruz explains that, historically, the world looked at the UK market as the benchmark of effective regulation. However, she now queries whether the market has become too restricted, pushing players toward the black market. Further, she continues that this is “not a UK debate,” as she highlights that these challenges span across a multitude of global jurisdictions.
BGC CEO: Drawing on the positives
Building on these themes is Betting and Gaming CEO, Grainne Hurst, who enters the frame to discuss the regulatory outlook, priorities and key industry pressure points over the next two years. She draws on the key question of how effective recent changes in the UK market will have their desired long-term effect - particularly around protecting players and allowing for a sustainable regulated market.
Hurst outlines that, in the UK, millions of people enjoy betting via the ‘Great British regulated gambling industry’ - which supports thousands of jobs across the country and drives innovation, alongside economic growth, within one of the most regulated gambling jurisdictions in the world.
“We can remember when safer gambling was just a slogan.”
Hurst continues that the progression of the industry around player protection and safer gambling particularly, is something that should be celebrated as an active demonstration of the regulated industry’s willingness to adapt and improve in the UK. However, she continues that the recent changes in the nation will spell a crucial two years for the long-term sustainability of the market.
Challenges in the UK market
Focusing on financial risk assessments, Hurst states that both opportunities and challenges lie around the corner. “Regulation doesn’t operate in a vacuum, consumers always have choices and increasingly one of those choices in the unregulated and unprotected black market.”
Financial risk assessments, states Hurst, remain one of the key inflection points of regulation in the UK market. Recent YouGov polling found that 65% of bettors would be unwilling to submit comprehensive financial details for gambling financial checks. This highlights the challenge in ensuring protection and effective regulation in this area.
Moving forwards to taxation, Hurst underlines the fresh calls for further increases in tax for the regulated gambling industry. “It is essential that policymakers consider the broader long-term impact, how it impacts investment, customer behaviour and channelisation. Players will not stop betting, but simply move elsewhere.”
Discussing the topic of advertising, Hurst explains that she believes too often gambling advertising is all treated as the same - as she highlights the importance of distinction between responsible and irresponsible advertising. She highlights that in the past two years, advertising by licensed operators has dropped from 80% to just over half.
The black-market concern
“The black market is not a theoretical concern, it is happening right now.”
Hurst draws on the fact that illegal operators are increasingly easy to find, with estimates highlighting that black market spend could increase to almost £33bn ($43.7bn) by 2028, tripling over two short years. “That should concern every regular, every policy maker and anyone who genuinely cares about player protection in the UK.
“Regulators, technology platforms, payment providers and operators all have a role to play in combatting the illegal market."
Looking ahead, Hurst states that operators will need to prepare for continued implementation of the white paper reform, ongoing debates around taxation and advertising and further calls to combat the illegal market.
“The period between now and 2028 will be critical for our industry.”
Recent taxation changes in the UK have caused widespread concern around the proliferation of the illegal gambling market
