The gaming regulators of the world should unite to fight illegal gambling declared Tim Miller, executive director of the U.K. Gambling Commission (UKGC) at the Global Gaming Expo on October 10, Yogonet reported.
Miller noted that the UKGC is finalizing memoranda of understanding with U.S. regulators to advance common goals; something he hopes will become a trend.
This kind of international cooperation could become a force multiplier toward creating a safer gaming environment for consumers. All with the goal of eliminating illegal gambling.
He noted that consumer projection is at the heart of the U.K.’s gambling white paper that was released this spring, and which is now amidst a consultation. It will be the first update of gambling law in the country since 2005.
Eliminating criminal influence, making gambling fairer and safer are all goals of this effort, he said.
According to Yogonet, Miller told the audience, “The collective voice of gambling regulators across the globe pressuring big tech companies, banks, and even some other jurisdictions to address the role they play in facilitating illegal gambling will be much harder to ignore.”
The white paper included more than 60 recommendations. The first set of consultations commenced in July and ended October 18. Phase one covered financial risk and vulnerability, the design of internet games, direct marketing and improving age verification in brick-and-mortar casinos.
A problem, Miller said, is that regulations differ significantly depending on jurisdiction. This allows operators to be legal in one jurisdiction and illegal in another. This points to the need for regulators to be familiar with rules in other jurisdictions. This encourages shared data and best practices and improves effectiveness overall.
Working together would pinch the abilities of uncooperative operators to use conflicting regulations in multiple jurisdictions to their advantage. It would also make it more likely their home jurisdictions would question their activities.
Miller highlighted the success of the commission in fighting illegal gambling through cooperation within the industry. This has led to a dramatic decrease in traffic to illegal gambling sites targeting British consumers. It is important to include payment providers, internet search engines and product and game developers in these efforts, he said.
He talked about enforcement measures the UKGC took during FY 2022/23 against four operators that culminated in fines of more than $73.2 million (£60 million). The operators were fined for regulatory failures.
He noted that he was told recently that 90 percent of the largest enforcement penalties and 85 percent of all enforcement activities have been done by the UKGC.
Last year the commission hit big companies like Entain and William Hill with significant fines. The goal was not to punish but to encourage correct behavior, he noted.
Fueling the need for more international cooperation among regulators is the growth of the sports betting industry in North America, and the participation in those markets by large British and European operators, he said.
In a related development, UKGC Director of Policy Ian Angus told delegates of the Lotteries Council that “substantive changes” to the Gambling Act review will be introduced “as we move into the new year” as responses to the government consultations on the white paper recommendations are published, CDC Gaming Reports reported October 12.
Included will be changes to the License Condition and Codes of Practice (LCCP). At the same time the consultation process will continue for unresolved issues.
The commission recently wrapped up consultations on financial vulnerability checks, financial risk assessment, removing features from online games that increase intensity of play, age verification and improving consumer choice on direct marketing.
The next phase of consultations will address issues of social responsibility, such as not using bonuses and free bets in a way to cause harm, gambling management and the issue of whether online deposit limits should be required and whether they should be opt-out rather than opt-in.
Angus said that the proposed research, education and treatment (RET) levy on the industry will be part of the consultation with the industry. The levy will probably require legislative action by parliament, he said.
Per CDC, Angus explained, “Whilst we’re on the levy, we are expecting DCMS (Department for Digital, Culture, Media & Sport) to launch their consultation on the levy soon, which will be your chance to make your case. Our advice to the government on the levy will also be published.”
The “substantive changes” related to the License Conditions and Codes of Practice (LCCP) will take longer and require more consultations, he said. “Now we do have to consult before we make any changes to that document which is why there will be a number of consultation windows over the next couple of years.”
Regarding the white paper recommendation of the creation of an ombudsman, which the industry has endorsed, Angus repeated that while it will be created by the industry, it will have to meet certain standards.
“Only when we and DCMS are satisfied with its scope and independence, will we explore how best to make sure that customers of all licensees have access to it,” he said, according to CDC.
