The GlobaliGaming Partners Affiliate Program has ceased operations in the UK gambling industry due to legislation, compliance and taxation. (Image by Tim Mossholder on unsplash.com)
While the UK gambling industry is admired around the world due to its strict regulation, focus on player protection, and how it works hard to weed out operators that flout the rules, is it now going too far?
Following the company issuing warning signs back in May, GlobaliGaming, a leading iGaming affiliate program in the UK, has now circulated an email to its partners that claims it has no choice but to close down.
In the email received by the Casinoplusbonus EN team, the GlobaliGaming Partners Affiliate Program stated that due to legislation, compliance, and taxation in the UK, it has had to close down.
In other words, the UK market has become too complex to operate in. For partnering affiliates, this is bad news in isolation, but could it be a sign of things to come as the UKGC continues to make life difficult for operators?
According to GlobaliGaming, due to reduced hold, new reverse withdrawal rules in the UK, taxation, and compliance, there has been no revenue to pay affiliates signed up to its program. They claim substantial amounts of money are continually held from them by brands in the UK.
Much of this is due to rising fees set by the UKGC and a negative gaming revenue brought in to operators. The firm claims it has spent months trying to secure a better outcome but has now had to admit defeat and close down for good.
GlobaliGaming has stated that they are working hard to compensate all partners and will contact each regarding individual account statuses.
Is the Good Work of the UKGC Now Having a Detrimental Effect?
The performance of the UKGC is often understated, but the regulatory body has to take a lot of credit for the hard work it has done to make the UK gambling industry what it is today. Renowned globally as the world’s top gambling regulatory body, the UK market is often held as an example that others should follow.
However, in the search for continual improvement, is such strict and expensive regulation now starting to have the opposite effect? Are brands now being forced out of a market that is too expensive to operate in?
The closure of GlobaliGaming, a company that relies on its income from top UK iGaming brands has to be a warning sign. As an affiliate program, the company makes its money by advertising these brands and attracting customers to sign up and play. However, if the casinos are not pulling in enough money to pay the firm, what does this say about the state of the UK gambling industry?
We already reported that increased licensing fees and application costs came into force at the start of this month. While it is difficult to know if these played a part in the closure of GlobaliGaming, surely this will only mean further issues down the line.
We know that the UKGC has to tread a fine line in making the UK gambling industry attractive to operators while also putting in place measures to protect players. Still, it is worrying that this balance is starting to tip a bit too much in one direction.
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