A month ago, Gamesys, a leading international online gaming operator, was fined in the United Kingdom over AML and social responsibility violations. Now, Gambling with Lives, a charity set up by families bereaved by gambling, seeks to convince the UK Gambling Commission (UKGC) to revoke the licenses of companies that commit serious violations.

Gambling with Lives launched a petition, asking the UKGC to be less benevolent to operators that violate its rules. Dubbed “Stop reckless gambling firms,” the petition urges stricter enforcement of the UK’s social responsibility rules since fines are easily paid by huge gambling companies.

Gambling with Lives argues that unregulated gambling can sometimes lead to suicides. As a result, fines that multibillion companies can easily pay are not a proportional punishment, the organization said. Citing recent statistics, the charity pointed out that a whopping 496 people in Britain take their lives because of gambling addiction every year.

Big Companies Will Never Change Unless Forced to

According to Gambling with Lives, big gambling operators earn billions of pounds a year, meaning that even fines in the realm of millions are easily payable. The charity said that, for many of these companies, fines are nothing more than a cost of business.

Because of this, multi-billion-pound gambling companies do not feel the need to change, the charity pointed out. Gambling with Lives cited Gamesys’ recent fine as an example, noting that the operator had promoted new games and promotions to a customer who had just lost £10,000.

These violations earned Gamesys a £6 million fine. However, its parent company, Bally’s, earns almost £2 billion a year.

Because of that, Gambling with Lives believes that operators should risk something more than a slap on the wrist.

The big gambling firms will never change their ways unless forced to. If they knew they could be shut down, they would be forced to behave better.

Gambling with Lives statement

Now, Gambling with Lives is seeking public support as it hopes to convince the UKGC to revoke the licenses of serious violators and help prevent gambling-related deaths in Britain.

The petition was launched yesterday and already has 1,117 of its target 2,000 signatures.

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The United Kingdom’s new Criminal Justice Bill is set to provide the Gambling Commission (UKGC) with extra powers, allowing it to request the blocking of unlicensed gambling websites. While yet to be passed, the bill is gaining traction as the UK seeks to empower law enforcement bodies, allowing them to tackle crime and fraud.

What That Means for the Gambling Industry

The bill has already passed its first and second readings and is now being discussed before undergoing a third reading. Following that, the bill will go to the House of Lords and, if approved, will finally be signed into law.

Under the new proposal, the UKGC will be able to request IP and domain name providers to block access to websites that violate or might violate British law. At the moment, the commission must request such actions under a voluntary suspension model that has proved to be inefficient, especially for sites outside of the UK.

As a result, the UK seeks to enable agencies, such as the UKGC, to apply for court orders, which can be served even to foreign companies.

Minister Philp Says the Bill Would Bring Much-Needed Change

Under the new Criminal Justice Bill, unlicensed operators and crypto casinos risk getting blocked. As reported by Next.io, Chris Philp, the United Kingdom’s Minister for Policing, said that these new rules will allow any UKGC member of at least the level of executive director to make applications for court orders.

Philp said that this is an important step in the crackdown on foreign companies that steal a market share from their legal competitors and do not respond to requests to cease their unlicensed activities.

Philp said that he hopes everyone can agree that this is a necessary measure, arguing that it would also help to tackle online crime as a whole.

In the meantime, the UKGC just handed a £6 million fine to Gamesys, which violated the country’s social responsibility and anti-money laundering protocols. The commission, which continues to closely monitor the market, concluded that Gamesys conducted inadequate customer due diligence and was over-reliant on third-party regulation.

In other news, the UK continues to discuss the ongoing gambling reforms, especially the controversial affordability checks. While yet to be implemented, the checks have agitated many bettors who believe that the measure would infringe on their privacy. As a result, the UK Petitions Committee will discuss Nevin Truesdale’s recent anti-affordability checks petition.

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The United Kingdom’s Gambling Commission (UKGC) has announced the appointment of Nick Rust as the chairman of its Industry Forum. According to the regulator, Rust will step into the office in November and will serve an initial two-year term.

The UKGC noted that its Industry Forum will be made up of members from the United Kingdom’s gambling sector. Its job will be to provide the gambling watchdog with insight into how the gambling industry feels about the Commission’s regulatory plans.

As announced by the UKGC, Rust has a significant track record in the gambling and sports sectors. His past experience includes a successful six-year tenure as the chief executive officer of the British Horseracing Authority. In addition to that, Rust currently serves as the chairman of the Starting Price Regulatory Commission. He is also a non-executive director of Redcar Racecourse.

The UKGC added that Rust is a founding partner of GVS EQ, a company that specializes in equine sports. He is also a trustee of the Injured Jockeys Fund.

Marcus Boyle, the UKGC’s chairman, welcomed Rust on board. He praised his knowledge of the gambling sector, saying that his input will be invaluable.

I am delighted that Nick has been appointed as the inaugural Chair of the Commission’s Industry Forum. Nick’s extensive knowledge of the gambling sector makes him a valuable asset, and I am confident he will work with us to create a productive and insightful Industry Forum.

Marcus Boyle, chair, UKGC

The UKGC Moves Toward Implementing the White Paper Measures

In the meantime, the UKGC continues to evaluate and move toward implementing the measures outlined in the Gambling Act white paper. However, its plans to introduce affordability checks continue to dismay both consumers and gambling companies.

A recent petition, for example, seeks to convince the government to abandon its affordability checks plans. The petition currently has almost 75,000 signatures. Gamblers argue that the measure would make their hobby unsustainable, despite the UKGC’s efforts to convince them that the checks would be seamless and non-intrusive.

Andrew Rhodes from the UKGC has been increasingly vocal about the alleged intentional efforts to misinform the British public about the true nature of the checks. During the recent IAGR conference, he reaffirmed his position, slamming the efforts to “muddy the waters of debate and to torpedo the implementation.”

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Tim Miller, the executive director of the United Kingdom’s Gambling Commission (UKGC), spoke during the recent G2E conference in Las Vegas, saying that his team is close to sealing several Memoranda of Understanding with a number of US regulators.

In line with Miller’s call for unity, the move would improve the relationship between the British regulator and its US counterparts, setting them up for further collaboration.

In his speech, Miller said that operators should work together to prevent unruly operators from causing harm. He explained that operators that abide by the rules in one market, may not be as cooperative in other markets, which is why regulators should share information and work together.

Such joint action would allow regulators to cover a glaring blind spot and create a healthier international gambling market. Miller noted that no regulator is an island and no single regulator can police the industry on its own.

The MOUs May Signify a New Age of Regulation

In his speech, Miller noted that many of Europe and the United Kingdom’s top operators have been increasingly interested in exploring the opportunities offered by the lucrative North American markets. The Memoranda of Understanding with US regulators will help the UKGC establish a very important relationship with the governing bodies of these key jurisdictions.

By working together and committing to collaboration, we can make sure we each achieve the safer, fairer and crime-free gambling that we want for our jurisdictions and for our consumers.

Tim Miller, executive director, UKGC

Miller also explained that the joint work with US regulators would put more pressure on third parties that facilitate black market gambling.

The Memoranda of Understanding with US regulators may very well signify a new age of gambling regulation, in line with the ongoing reforms in the United Kingdom. The UK is still consulting the white paper proposals that seek to revolutionize the gambling sector and modernize its rules.

Miller’s call is also reflected in the efforts of Australia’s ACMA to join forces with the Curaçao government and weed out unlicensed Curaçao-based operators.

However, not all regulators might be equally cooperative. Earlier this year, Malta passed Bill 55, restricting regulators’ ability to impose judgment on Malta-licensed companies. Needless to say, the move was extensively scrutinized by multiple European regulators.

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The study sheds light on the gambling activity that unfolds during such high-profile events and their aftermath. Its findings will help the British regulator make better-informed decisions and remain in touch with the ever-changing global gaming landscape. Analyzing these interactions will help the commission enhance its regulatory measures and promote responsible gambling practices.

Impressive Participation Yielded Reliable Results

The UKGC commissioned fieldwork and data collection company Yonder Data Solutions to examine the gambling activity during and after the 2022 FIFA World Cup. Yonder’s approach involved contacting individuals who engaged in betting during the tournament. Respondents answered questions about their gambling behaviors and attitudes over the preceding four weeks.

The study yielded valuable insights by re-contacting the same people in March to uncover any changes in their gambling behavior. 811 individuals participated in both surveys, forming a solid foundation for the research’s conclusions. Such data will be invaluable in the UKGC’s efforts to promote safe gambling during similar high-profile events.

The World Cup Had a Significant Impact on Bettors

According to the UK regulator, the data revealed several notable trends. Compared to the 12 months used for previous surveys, respondents reflected on the period since the world cup. However, average gambling participation increased. Although wager amounts dropped significantly, the higher-than-average engagement signifies that high-profile sports events can efficiently onboard and retain gambling customers.

The UKGC also examined the results according to its Path to Play framework, determining that most World Cup bettors engaged with gambling to add excitement to the game, often choosing to participate due to influence from friends. These findings mean participants are less likely to wager “For the Money,” making them less at risk of problem gambling.

This reinforces the view that betting on the World Cup was more of a social experience than normal football betting.

UKGC report

Despite the prevailing social aspect of World Cup gambling, it led to continued betting engagement for a third of participants, demonstrating its potential status as a “gateway” event. Gambling harm data was inconclusive, prompting the UKGC to consider additional research as the 2023 FIFA Women’s World Cup final is just around the corner.

By engaging in such investigations, the UKGC continues to equip itself with actionable insights to protect bettors and address potential challenges in the gambling landscape. The regulator’s efforts reflect its commitment to maintaining a balanced and transparent gambling sector that prioritizes consumer well-being and responsible gambling practices.

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The UK Gambling Commission (UKGC) has sounded an alarm over the misuse of gambling statistics by stakeholders, calling for responsible data presentation to maintain debate integrity.

Amidst the evolving discussions on gambling regulations, the UKGC has expressed deep concerns about the manipulation of statistics to bolster arguments. This trend has been observed across the board, involving gambling operators, the media, and other parties, often accompanied by confusion between “problem gambling” and “gambling-related harm.”

A key concern centers on distorted problem gambling statistics. Claims like “99.7 percent of gamblers are unhurt” and “only 0.3 percent are harmed” are misleading. The 0.3 percent figure refers to the UKGC’s abbreviated Problem Gambling Severity Index (PGSI) screen, which has fluctuated between 0.2 and 0.6 percent of individuals aged 16 or older experiencing problem gambling.

The misconception stems from assuming this percentage pertains solely to gamblers, when it includes all adults in Great Britain. Health Survey for England 2021 data shows that among those aged 16 and over who gambled in the past year, 0.8 percent experienced problem gambling by PGSI or DSM-IV criteria.

Misleading notions about low-risk gambling forms are also addressed. The UKGC clarifies that problem gambling rates vary significantly by activity, ranging from 0.9 percent for National Lottery players to 8.5 percent for online slots, live casinos, or bingo participants.

Inaccuracies are noted in comparative analyses due to pandemic-induced data collection limitations or changes in survey methods. The UKGC emphasizes cautious interpretation.

The complexity of gambling statistics underscores the issue. Despite an apparently low overall problem gambling rate relative to participation, the UKGC stresses the profound consequences for affected individuals and their communities.

To maintain discussion credibility and informed decisions, the UKGC urges stakeholders to use statistics responsibly, ensuring diligence, precision, and contextual understanding.

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The United Kingdom’s Gambling Commission (UKGC) scrutinized the misuse of statistics for furthering arguments and pushing agendas. While the British regulator supports all kinds of opinions on gambling, it slammed the misuse of statistics as “unacceptable.”

The UKGC noted that it has seen all kinds of pro-gambling and anti-gambling bodies misuse statistics to present their arguments. This includes, among others, operators, unions, non-profit organizations, sports bodies and media companies.

To make matters worse, some complaints the authority has received have seen the complainants themselves resort to misusing statistics. In other cases, parties resorted to leveraging unreliable statistics whose authors had themselves noted that the data in their works might not reveal the full picture.

The UKGC’s chief executive officer, Andrew Rhodes, noted that all parties who use statistics to present their points should do so “accurately and in the correct context.” The UKGC warned that it might refer cases of misused data to the Office for Statistics Regulation.

Problem Gambling Rates Are Oftentimes Misrepresented

Rhodes explained that the most commonly misused statistic is related to the problem gambling rate in Great Britain. Many organizations have referred to a figure that shows only 0.3% of adults in Great Britain are problem players.

The figure relates to UKGC’s short PGSI screen that shows that between March 2019 and March 2023, between 0.2% and 0.6% of people over 16 had experienced gambling harm. In addition, the figure represents only problem players and not “at risk” players, the UKGC added.

Instead, multiple organizations have wrongly claimed that the figure represents 0.3% of the gamblers in the UK and that it refers to both problem players and at-risk players.

The UKGC referred to a number of surveys to demonstrate the faultiness of the 0.3% claims, including the Health Survey for England 2021, HAS 2021 Gambling tables and the Health Survey for England 2018. For example, the 2021 survey showed that 0.8% of those who had gambled in the past 12 months were experiencing problem gambling. However, this statistic itself also doesn’t show the full picture, Rhodes pointed out.

In addition, the CEO noted that the representation of certain gambling verticals as “less risky” is misleading and untrue. Furthermore, parties have sometimes compared statistics to claim certain development in the sector. While this is not a problem in itself, the data, arguments and methodologies they have used are oftentimes faulty, Rhodes argued.

Misusing Statistics Serves No One, Rhodes Said

Rhodes noted that the real statistics confirm that problem gambling rates in the United Kingdom are low. However, he slammed parties who misinterpret data to push agendas and warned that problem gambling can still be devastating to families and people’s relationships.

Anyone seeking to compare data sets has an obligation to make sure the data is used in the proper context and not compared when it is not appropriate to do so, especially when authors have placed those caveats on their reports.

Andrew Rhodes, CEO, UKGC

Rhodes concluded that gambling is a topic that can be discussed in depth but added that misusing statistics to further an argument serves no one. Because of that, he asked parties to take greater care to properly understand the context and truthfully represent the information when appealing to statistics.

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The gambling regulator in the UK, the Gambling Commission, announced the launch of consultations regarding the proposed changes following the review of the Gambling Act in the country. The consultations launched Wednesday and will run for 12 weeks. During that time, the Commission asks gambling operators, health experts, consumers and other groups involved in the sector to submit their opinion regarding key changes that seek to improve the regulated gambling sector. Ultimately, the proposals seek to make the UK gambling industry safer, fairer and free from crime.

Stuart Andrew, the country’s Gambling Minister, explained that the proposed changes to the gambling regulation seek to make the new rules suitable for the digital era. Additionally, he explained that the government seeks to ensure customers that enjoy gambling responsibly to continue doing so while protecting at-risk or vulnerable people from gambling harm. Andrew added: “These consultations give people a chance to have their say and I encourage everyone to make their voice heard.”

“We are updating our decades old gambling laws to make them fit for the smartphone era.“

Stuart Andrew, Gambling Minister

The recently launched consultations will seek the opinion of consumers, gambling companies and industry stakeholders within four strategic areas. Those include proposals for strengthening age verification for land-based gambling venues and improving customer choice on direct marketing. Moreover, the Commission seeks opinions regarding the design of remote games and financial risk and vulnerability.

In addition to the aforementioned areas, the Commission seeks input regarding proposals that call for the implementation of personal management licenses for employees that hold management-level roles. Separately, the regulator would consult on proposals “relating to the composition and decision-making processes of the Commission’s Regulatory Panels.”

Changes to the Gambling Sector Are Imminent

The launch of the consultation comes after the gambling regulator touched on the topic of cashout issues for bettors. The Commission’s director of communications, Lucy Denton, recently explained that operators should never obstruct customers from withdrawing their funds. Yet, she added that the application of specific restrictions related to depositing is something that may be implemented.

“We are pleased to now focus consultation and engagement on the detail of how such protections and controls can be implemented in practice.“

Tim Miller, executive director for research and policy at the Gambling Commission

Focusing once again on the consultations, the regulator’s executive director for research and policy, Tim Miller, highlighted the importance of input from consumers and gambling companies. “These consultations offer the opportunity for people to have their say on proposals aimed at empowering and protecting consumers,” he said.

Miller explained that some of the proposals have already seen plenty of engagement. Finally, he explained that the launch of the consultations represents a milestone moment for the changes in gambling regulations in the country.

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The UK Gambling Commission (UKGC), the gambling regulator in the country, is tasked with monitoring the compliance of gambling licensees. The work of the commission includes not only monitoring but the implementation of penalties whenever breaches to the established regulations are observed. In addition to fines, the UKGC has the power to suspend or revoke licenses for serious offenses.

Now, the gambling watchdog unveiled details regarding a monetary sanction imposed against the gambling operator Star Racing Limited trading as Star Sports. On Thursday, the Commission revealed it uncovered breaches by the company relating to anti-money laundering (AML), as well as social responsibility. According to the Gambling Commission, the breaches occurred between March 2020 and May 2021.

Describing the breaches, the gambling regulator said that it found that Star Sports breached Paragraphs 2 and 3 of license condition (LC) 12.1.1 which are related to AML and the prevention of money laundering and terrorist financing. Additionally, the gambling watchdog said that the operator breached License Condition 12.1.2 which requires foreign jurisdiction-based operators to comply with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.

Last but not least, the UKGC said that Star Sports failed to comply with Paragraphs 1 and 2 of the Social Responsibility code provision (SRCP) 3.4.1. The aforementioned paragraphs require gambling operators to interact with their customers to help prevent gambling harm or associated risks.

Due to the described breaches, the Commission said it imposed a monetary penalty of £594,000 ($776,400) against Star Sports. The company also received a warning and saw the addition of an extra condition to its license. The additional conditions to its license will demand the operator to “conduct risk-based due diligence on the third parties it transacts with,” explains the UKGC.

The Gambling Regulator Continues to Monitor the Market

The latest fine and warning come after the UKGC recently imposed a hefty fine against Videoslots. In mid-June, the regulator announced it uncovered breaches related to AML and responsible gambling practices. As a result, the licensee was hit with a substantial £2 million ($2.53 million) financial penalty.

Before that, in May, the Commission unveiled details regarding an investigation into PPB Counterparty Services Limited, trading as Paddy Power and Betfair. That probe uncovered deficiencies related to marketing, which resulted in a £490,000 ($606,300) fine against PPB Counterparty Services Limited.

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The new hub has been published on UKGC’s platform under the “Compliance” tab. Its main purpose is to help operators collaborating with entities that are not licensed to fulfill their duties and carry on their responsibilities with more ease. 

Last month, the Commission announced its intention to fill in evidence gaps under the 2023-2026 plan, as a result of the much-anticipated launch of the White Paper. 

Offering Guidance and Information

The new test hub offers clear definitions of both the responsibilities and expectations of operators who do business with white-label partners and other parties that are not running under valid licenses. 

Information regarding the recommended practices that operators should follow to make sure that all Licence Conditions and Codes of Practice (LLCP) are carried out efficiently is also part of the new hub.

The decision to launch the hub in its testing phase came after the Commission imposed a number of fines and other punitive measures on several operators who had failed to conduct due diligence checkups on contracted third parties they were running contracts with. 

As a result, UKGC licensees have asked for a thorough review of the LLCP in order to determine the best regulations that would express the obligations that all gambling operators should comply with when working together with third parties. 

According to UKGC, licensees are directly responsible for the third parties they choose to collaborate with, which means the need to make sure the latters’ operations are perfectly aligned with these license conditions and codes of practice.

Operators Must Check Their Partners’ Reliability and Competence

As per the recommendations in the new test hub, gambling businesses should perform a series of due diligence inspections on all the third parties they currently work with or which they plan on working with in the future to determine their levels of trustworthiness and competence. 

Additionally, the commission asks all licensees that rely on third parties to conduct any aspect of their business in relation to the licensed activities to ensure they have “sufficient oversight and controls in place to ensure all activities are carried out in accordance with the LCCP, notably, but not exclusively, social responsibility and anti-money laundering requirements.”

Operators who fail to effectively control the third parties they work with could be subject to regulatory actions including the loss or temporary suspension of their license to operate in the UK. 

The information in the new hub also explains that online gaming operators holding a license are exclusively responsible for the compliance of all of their gambling platforms, including white-labeled websites, and that the responsibility cannot be transferred to other parties.

In May, the Commission fined SkillOnNet $380,000 over a series of license breaches. In January, TonyBet was given a $550,000 fine over a number of similar breaches. 

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