Gambling Regulatory Best Practices

We break down some of the points made by the UK’s Betting and Gaming Council (BGC) in its recent Gambling Regulatory Best Practices guide. (Image by w_lenu_nu541255 on Vecteezy)

The UK’s Betting and Gaming Council (BGC) has created a regulatory best gambling regulatory practices guide.

It is a report that uses examples of rules from multiple gambling regulatory authorities across the globe. In essence, it is a ‘what works’ and ‘what may not work’ report.

In this latest Casinoplusbonus gambling news report, I take a look at some of the key points in the BGC best practices guide, and I also pitch in with some of my thoughts on the matter.

The BGC report mainly focuses on the success of the UK gambling industry. Still, it also looks at other licensing authorities across the globe and highlights how the use of specific rules in their jurisdictions has created success.

One highlight is that UKGC rules under the UK Gambling Act 2005 have successfully boosted Britain’s tax revenues. At the same time, the success of UK gambling in land-based and online environments has created hundreds of thousands of jobs either directly or indirectly due to the UK’s bustling gambling sector.

For instance, regulation creates jobs in IT, as gambling companies need computer systems put in place for compliance measures. IT systems could be KYC programs to prevent underage gambling and money laundering or tools that spot changes in user behaviour that could lead to gambling addiction.

Furthermore, the BGC highlights Britain’s low gambling addiction records. One rule that I notably advocate in the UK is that the UKGC forces online gambling platforms to include responsible gambling tools so players can set limits, exclude from real money gambling, and keep track of playing time.

However, the report also points out the dangers of over-regulation. A topic that, as iGaming journalists, we have seen work against the UK and Australian gambling markets. Australia does not allow online casinos, so its online casino market is 100% black market. The UK has clamped down on video slot features, increased the cost for UK operators to provide service in the country, thus reducing value passed onto players, and is in the midst of introducing invasive affordability checks.

Over-regulation is now a real topic, especially considering even the best gambling regulatory practices guide points out the growing black market in the UK.

You can read the full Betting and Gaming Council Launch First International Best Practice Guide. Copies are available via email [email protected].

Key Points Highlighted to Creating Ideal Gambling Regulatory Conditions

BGC Rules to Focus On BGC Explanation Casinoplusbonus Opinion
High Channelisation Ensuring that as much gaming as possible takes place in the regulated market.
  • This rule suggests that countries use domestic licensing.
  • In Canada and the USA, there are provincial, territorial, and state licensing authorities.
Consumer Protection Protecting young people and the vulnerable through robust safer gambling measures.
  • In the UK, anyone between 18 and 24 cannot bet more than £2.00 per spin.
  • In Ireland, the country is introducing gambling advertising watersheds to prevent young people’s exposure to gambling ads.
Preserving Consumer Choice Maintaining competition
  • In the UK, we here at Casinoplusbonus feel the lack of crypto availability under UKGC fuels the black market.
  • The expense of operating in the UK casino market has seen many brands exit the country. There has to be a fine line between costs to operate in the UK and maintaining competition.
Keeping Gambling Crime Free Ensuring sporting integrity.
  • The most recent example we have seen is the changes to the Curacao eGaming licensing. To keep gambling crime-free, there is now a new Gambling Control Board (GCB).
Raising Tax Revenue Ensuring operators invest in the markets they operate in.
  • I am not sure how raising tax revenue will help with maintaining competition. A fair tax revenue will keep any gambling company competitive, thus passing down value to players.
  • Passing down value to players, could prevent over-gambling as players get a better deal, they feel less inclined to chase losses.

The Dangers of Over-regulation and Government Policy Interference

This is the part where I pitch in with my two-pence on the matter. I believe the UK has gone too far with over-regulation, and the UKGC and government are only just beginning to realise the adverse effects.

The issue with the UK government is the minsters have put so much pressure on the gambling industry to divert attention away from their poor policy performance. To do this, they make noise about gambling, which has led to over-regulation.

Now, the problem in the UK is that its strict gambling rules limit features and bonus value available to players. For example, online and land-based slots in the UK cannot include bonus buys, auto-spins, or quick spins, while there is a max bet limit of £5.00 per spin. You can see the full list on our Casinoplusbonus UK gambling guide, which points out the new rules currently in place.

On top of this, the UK is also seeing pushback from players regarding the introduction of affordability checks.

Taking just these factors into account, some of these rules have worked against the UK remote gambling industry as the BGC also pointed out that the UK has a growing number of players opting to sign up for black market casinos, i.e., platforms not operating under the UKGC licensing authority.

How can the UK reduce black market gambling? In my opinion, the UK can eradicate 50% to 60% of black-market gambling by allowing online casinos to accept crypto payments. The problem is, every time there is a report or survey, they ignore the fact crypto even exists, as I pointed out in a recent report – ‘Over Regulation – UK’s Growing Black Market‘.

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