The UK Gambling Commission Regulatory Model Raises the Bar for the iGaming Industry

Anyone who gambles knows that the online sector of the industry has been struggling with the lack of proper regulation since the beginning. While land-based casinos flourish across the globe, online gamblers are being pushed aside, either sanctioned by law or ignored altogether, left to fend for themselves in the so-called gray zone where nothing is quite specific. Even countries that otherwise allow and adequately regulate gaming activities in physical locations, like the United States with Las Vegas being hailed as the unofficial gambling capital of the world, cannot be bothered legalizing internet wagering because it is difficult to do right. Cyberspace is a whole new ballgame, and to bind it efficiently requires building an entirely new framework practically from scratch.

Some countries have recognized early on that there’s no stopping the iGaming industry. It is already far more popular than the land portion, simply because it is readily available and offers more convenient ways to play any game of chance or skill. People who want to gamble on the internet always find a way, despite restrictions or the lack thereof. The United Kingdom, one of the world’s largest online markets, realized it’s better to have control over these activities and offer some protection to their citizens than leave them at the mercy of the black market, which they would seek anyway. As a result, the UK Gambling Commission was formed and has been operating with a high degree of success for over a decade.

Top 4 United Kingdom Casinos

A Model to Consider

The Commission is the country’s official regulator overseeing all forms of gambling in a highly competitive market, from casino games to lottery and sports betting. This region is especially attractive to remote operators and many have obtained a license to offer services within the borders. Formed in 2005 and officially on duty since 2007, with a system created independently of others, paving the way for future regulations and regulatory standards on a global scale. While not perfect, the model proved very effective with regards to almost any aspect of gaming operations, most importantly ensuring the player protection by letting only legitimate and suitable companies in through careful screening procedures. In such a dynamic environment that is continuously changing, improvement is not an option but a necessity and the Commission does a good job when essential matters are concerned: fending off criminal groups, making gambling fair and transparent, and ensuring the safety of minors and risk players. Additionally, software must have certified random number generators.

Obtaining the UK license is difficult and quite expensive, with operators having to comply with stringent requirements, pay high taxes and follow defined rules pertaining to advertising. Those who operate without a license are doing so illegally, facing criminal charges. Another way to control offshore companies was through the so-called white-listing process. This allows foreign sites with permits from the European Union jurisdictions to on the UK’s public channels and accept wagers from the residents. There are currently over 2000 licensees operating in the region, even after many have pulled out from the market in the months following the 2014 amendments that introduced harsher requirements.

New Proposals

It has so far been among only a few jurisdictions to pursue more effective measures actively, and to attempt to establish a system that is fair to both gaming companies and customers. In 2017, after reviewing major persistent issues, the Commission enforced new laws, which meant higher taxes for a portion of the licensees. A much-needed advertising and marketing restrictions were introduced to prevent misleading ads, as outlined by the Advertising Standards Authority. Popular brands Bet365, Betfair and BGO were among the first to face penalties for false ments for promotions and failing to address the consequences of their actions in due time proper manner.