Is unregulated gambling in the UK about to explode? Black market gambling sites seem to think so after an increase in UK ads! (Photo by Mohamed Hassan on Pixabay)
In lieu of the upcoming release of the UK gambling market’s white paper, a recent report issued on the Betting and Gambling Council (BGC) newswires highlights a research study showing more than 250,000 UK citizens visited unregulated gambling websites.
This is a year-on-year increase of 212%, more than double the number of players. It is a worrying sign for the UK Gambling market. However, and not to cushion the figures in any way, the spike was largely due to the World Cup in Qatar which would of course mostly relate to sports betting.
Players are seeking out black market gambling sites without a UKGC licence. These platforms are not connected to GamStop – a system that links all online gambling sites to a database that tracks players who have self-excluded thus preventing them from signing up and playing at any other establishments in the UK.
The study came about after the BGC requested a well-known research company, Yield Sec, to carry out an analysis of the current size of the unregulated gambling market in the UK.
One solution to this issue or one many believe will solve some of the woes of the UK gambling market that is currently coming under scrutiny is the issue of the much-anticipated white paper. Paul Scully, who attended the recent BGC, has said that the document is in its final stages of completion.
What is an unregulated gambling site in the UK? Any online gambling website without a UKGC licence. These operators do not use GameStop and are generally not punishable under UK laws. You can learn more about the country’s online gambling market via the United Kingdom online casinos guide here where you will find an expert breakdown.
United Kingdom Gambling Market White Paper Close to Completion
(No sign that it will deter black-market casinos)
In the recent BGC annual get-together, Paul Scully (UK Gambling Minister) said the white paper is undergoing the finishing touches. Originally slated for release in 2019, it seems it is finally about to go public.
Operators, tech companies, aggregator tech solution firms and software providers are all awaiting its release amidst uncertainty due to the large number of operators surrendering their UKGC licence. However, when you look at some of the rumoured content it will supposedly contain, I don’t think this will deter those looking for black market casinos.
Some of the rumoured white paper content is said to be as follows:
- Casino may have to shelve their VIP loyalty programs.
- Plans to reduce video slots’ maximum bets to between £2 and £5 per spin.
- Betting more than £2 and £5 per spin on slots would require an enhanced affordability check.
- Auto trigger affordability checks at when players lose £125+ per month or £500+ per year.
- One suggestion is the banning of ‘free bets’ promos off the back of a loss (hopefully not cashback on your losses!)
Looking at some of the possible content of the report, it remains to be seen how the UKGC’s gambling white paper will solve the industry’s key issues. Right now, they appear to be (1) Reducing the number of players seeking out unregulated gambling sites and (2) Reducing the number of companies exiting the UK gambling market.
White Paper May Contain the Following Rules
- Abolish VIP loyalty programs.
- £2 and £5 per spin max bets on slots
- Enhanced financial check for increased slot limits
- Auto triggered affordability checks
- No more ‘post-loss advertising’ promos
Black Market Online Gambling Platforms – Vultures preying on opportunity?
What is the appeal factor black market casinos offer? Well, first you need to understand how they operate, which is straightforward. And their target audience is one that creates a worrisome scenario for the UKGC.
Most operators running black market online casinos do so to skirt the gambling laws and regs of the countries they target. Of course, none of the operators runs a registered UK business as this would leave them open to prosecution. Effectively this is the first step, and admittedly a cost-effective one to ensure their business and platform are exempt from UK laws.
Adding to this, the lion’s share of these virtual establishments has no licensing of any kind in place from any other jurisdiction because if they did, the licensing framework would likely restrict them from targeting the UK market.
Ironically, this appeals to some players. Judging by the recent BGC report, a quarter of a million people in the UKGC.
So, what is the appeal?
- Self-Excluded Players: Self-exclusion is an irreversible option all regulated online casinos in the UK must sign up to. If a player self excludes, he/she cannot deposit or play real money casino games at the casino. All other UKGC-regulated casinos connect to this same database, so the player cannot sign up for another casino either. One option is the ‘lifetime’ ban. How many players did so in the heat of the moment? Inevitably, many of them will search for black market casinos and sports books.
- Problem Gamblers: The real issue at large is how many players are currently self-excluded because of legitimate gambling addiction options. These black-market online gambling sites’ serviceable obtainable market (SOM) are essentially problem gamblers, which is a real concern.
- Cryptocurrency: There are no UKGC casinos that offer cryptocurrency deposits, and a huge demand for crypto gambling. The recent SOFTSWISS hottest iGaming trends report is a testament to this. Therefore, how many of the 250,000 players were seeking out crypto gaming?
Here’s the part that scares the UKGC: These black-market online gambling sites’ serviceable obtainable market (SOM) are essentially problem gamblers. Otherwise, why play at an online casino not regulated by the UKGC under the protection of local consumer rights and game fairness laws?
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