Gambling

How are Regulatory Changes Affecting the UK Gambling Sector?

The UK Gambling sector has changed significantly over the last few years. We’ve seen a ban on credit card gambling, changes to limits on fixed-online betting terminals, delays between spins, and the removal of auto-play and turbo options. And that’s just the start. Regulators are planning some bigger changes later in the year, and they’re unlikely to end there.

So, how will these changes impact the UK’s best-known casino websites and brands. and how will they impact the players who enjoy these sites and the authorities that tax them?

Players are Turning to the Black Market

In a country where gambling is legal and tightly regulated, it seems absurd to suggest that players would turn their backs on legal gambling and dive into the black market. But that’s exactly what’s happening.

Illegal gambling generated over ÂŁ270 million last year, and the number is rising. Black market bookmakers are even buying up boxes at racecourses to give their customers a VIP experience.

Of course, this has nothing to do with the removal of credit cards and slower slot spin times. It’s because high rollers are facing increased scrutiny and lower limits. They are the lifeblood of the industry, the players who deposit the most and wager the most, and as they can’t get what they want legally, they’re turning to unregulated markets.

The bigger concern is that this problem will grow when new affordability checks are introduced.

The government has proposed a system whereby all players who lose £1,000 within 24 hours or £2,000 over 90 days will be required to undergo financial checks. The idea is that these checks will protect players who can’t afford to lose such sums of money, but it also means that high rollers must submit themselves to intrusive checks.

The changes will also require passive affordability checks for players who lose more than £125 a month or £500 a year. It’s these checks that have raised the most concern, as the average casual gambler is within that scale.

On the one hand, problem gamblers who can’t afford to lose substantial sums will be blocked. But at the same time, private players who don’t want to be scrutinised will either stop altogether or take their money elsewhere. Problem gamblers could also turn to the black market, where there is no protection, no responsible gambling controls, and very little support.

A Change in Bonuses

Although nothing has been planned yet, the government has raised concerns about casino bonuses, noting that they increase the temptation for problem gamblers and may cause them to wager more than they can afford.

It’s no secret that bonuses increase activity. That’s what they are there for. Without them, gambling sites would have fewer means for driving traffic to their site. It will impact the industry on the whole but will likely have more of an effect on new independent sites that lack the presence, reputation, and marketing budgets to compete with household names.

Bonus restrictions already exist in other jurisdictions, including Sweden, where gambling sites must limit their offering to a single bonus, a law that has resulted in many breaches and fines.

The sporting world has a close relationship with the gambling sector. Casinos and sportsbooks spend billions on advertising, whether they’re placing their logos on football shirts, plastering them across billboards, or paying for TV ads during live games. That could change in the next few years.

Other companies will step in to fill those advertising spaces, but by removing such a key player, it will cause a headache for Premier League teams already battling with the beast that is financial fair play (FFP).

After the end of the 2025/26 season, football logos will be removed from the front of football shirts and a new code of conduct will be drawn up. There have been no suggestions of an industry-wide advertising ban, but considering 8 of the 20 Premier League teams have a main gambling shirt sponsor, it will leave a mark.

Summary: Tax Revenue is Still High

Despite all of the above, the gambling sector still drives a lot of tax revenue, and that seems set to continue. During the 2023/24 tax year, tax receipts exceeded £3.5 billion, adding up to a total of £124 for every UK household. That number has doubled over the last couple of decades. It seems that even with tightening restrictions, closing betting shops, and fewer license applications, the UK’s public appetite for gambling is stronger than ever.

Will that change? It’s hard to say, but the government knows how much this industry generates for their coffers. It knows how many billions are spent on advertising and how many people work within the industry. So, every time it proposes a major change it will weigh up the pros and cons (safer gambler vs reduced income) and make an educated decision.

It’s unlikely we’ll see prohibition anytime soon, but we can definitely expect more changes.


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