The U.K. Gambling Commission recently hosted a two-day meeting of industry executives and technology experts, seeking to make progress on the development of a “single, industry-wide solution” to reduce problem gambling. Such an approach has already been outlined as a major initiative of the commission’s ongoing national strategy.
The meeting, held in Birmingham, brought in more than 100 technology experts and included support from the Betting and Gaming Council, with representation from the Information Commissioners Office. In 2020, the commission seeks to raise standards and knowledge on areas related to ethical game design, the use of advertising technology, and incentives for high-value customers.
“We recognize that … operators currently only have a partial view of behavior, (and that) is a challenge,” Neil McArthur, CEO of the Gambling Commission said. “That’s why we’re bringing together experts from outside and within the gambling industry, to explore how technology could create a single customer view, as it has the potential to significantly improve customer protection.”
In related news, stricter regulations designed to reduce gambling addictions have had an impact on gaming revenues in the U.K. Revenue has been steadily dropping since 2014, according to some studies. Tighter government regulation and negative media coverage contributed to the gambling sector’s first-ever decline in the gross gambling yield last year.
According to data from the LeagueOfBetting.com, revenue from gambling and betting activities in the country expects to reach $79.8 billion this year, or $3 billion less than 2019 figures. The statistics indicate the downsizing should continue income dropping to $70 billion by 2024.
In 2014, the gaming and betting industry topped $114.3 billion in revenue, according to a Statista survey, the highest in seven years. By 2016, income dropped 17 percent to $94.5 billion. In 2017, numbers increased to $101.2 billion, but in 2018, revenue plunged again to $86.3 billion and declined another $3 billion a year later.
Though remote and online gambling has increased substantially over the years, a significant part of the decrease in total gross gambling yield resulted from a fall-off in online gambling.
In just four years, the number of new online gambling player registrations quadrupled, topping 34.2 million in 2018. However, UKGC data revealed that in 2019, for the first time in the recorded period, gross gambling yield from online gaming witnessed a 0.6 decrease to £5.3 billion.
It’s not just revenue taking a hit. Tighter government rules, including stricter age and identity checks for online gambling and the capping of maximum stake on terminals, decreased the number of companies in the market. In 2019, the number licensed by the Gambling Commission dropped to 2,689, or 4.6 percent less than the previous report.
In January, an international betting and casino website, Royal Panda, announced it’s leaving the U.K. market, telling customers they should withdraw funds before the end of the month. Malta-based Slotty Vegas operator Max Entertainment pulled out the same month, naming the U.K.’s departure from the European Union as the reason.
The number of licensed operators might witness an even more significant drop, as the government announced a new restriction in February. As a part of the plan against gambling addiction, the government restricted the use of credit cards for betting. Financial data showed around 800,000 U.K. residents use credit cards to gamble, and 22 percent of them are problem gamblers. The ban will come into effect in April and apply to all online and offline gambling products.
