The road ahead – collaboration and transparency key
Andrew Rhodes delivered a powerful reminder of the Gambling Commission’s (UKGC) continued commitment to reform in his 15 November speech to industry CEOs. He focused on collaboration, transparency, and innovation. He also shared his views on the UK gambling industry as it stands, alongside his hopes (and occasionally fears) for the future.
We’re going to look at some of the overarching themes in his speech, offer our take on what he had to say – as well as a few bits that might have been missing!
- Setting the scene
- Progress in compliance
- Consumer protection
- Illegal gambling
- Innovation needed
- What wasn't covered?
- Reflections
Setting the scene: the UKGC’s vision and focus areas
Two particular areas that stood out in Rhodes’ speech were collaboration and transparency. These are certainly two important talking points that nobody could argue the UK gambling industry wouldn’t benefit from addressing. Below is a more in-depth look at what Rhodes said.
Collaboration to the fore
Collaboration is certainly something Rhodes believes the Gambling Commission has succeeded in improving in the 2 years since he became CEO. He emphasised the importance of industry and regulatory collaboration, using initiatives like GamProtect as an example of the positive outcomes that can be achieved when regulatory bodies and businesses work together.
Transparency as a core principle
There was also mention of the Gambling Commission's Corporate Strategy that was published in April. He explained that while the UKGC have long expected companies to act transparently, they’re now taking a leaf out of their own book (so to speak) and becoming more proactive in their own approach to transparency. This includes explaining:
- How well the rules they’ve laid out are being followed
- Sharing facts and figures with the public
- Helping players understand why certain things (like checks/limits) happen
Rhodes highlighted how the Gambling Survey for Great Britain gave priceless insight into how the UK public gambles. There was talk of how this survey could be improved, but also time dedicated to celebrating what an achievement it is – the largest survey of its kind in the world.
Progress in compliance
Generally, Rhodes gave the impression he was pleased with the progress the industry had made in compliance, but he wasn’t shy to admit there is still room for improvement.
He explained that, on the whole, gambling companies and casinos were contacting customers that most needed intervention more quickly and more satisfactorily. Most notably the compliance metrics have improved, pretty dramatically. In Q3, 75% of assessments were satisfactory or better, this is up from 58% the previous quarter. It’s clear that the new frameworks are making a difference, though it’s also clear that this more complex framework is harder for smaller operators to keep up with.
Disappointing progress in consumer protection
One of the low points of Rhodes’ speech was with regard to consumer protection and overall feeling. Withdrawal delays and account restrictions remain the top complaints.
The commission's data on withdrawals shows only 1% are not processed within 48 hours. However, the commission doesn’t yet have the data on what is causing account restrictions and limitations. There was a lot of talk about a small minority of successful sports bettors seeing restrictions put on their accounts and taking to social media to vent about it. At present, this is only anecdotal, but if it is happening, then it’s a problem. Thankfully, Rhodes feels the same and stated that ‘in the very near future we will be asking you for data on account restrictions and the reasons’. This is a positive step, as seeing the data is the only way to determine if profitable/successful gamblers are being penalised.
A broad view of illegal gambling
Rhodes spent a good deal of time discussing the illegal gambling landscape in the UK and unpicking the different ‘groups’ the commission believes are using these sites. He then moved on to explain what the commission’s plans are for tackling both online and land-based illegal gambling operations.
Which groups are using illegal sites
This was a particularly interesting insight into the theories behind illegal gambling and why it happens. Rhodes clearly broke users of these sites down into 4 distinct groups – each with different motivations. This is a brilliant way of identifying the problem and the beginning of ways to address it. The groups Rhodes outline are below:
- Self-excluded consumers: Those who have been proactive in disengaging from gambling by using tools like Gamstop. Illegal sites exploit the vulnerability of this group, even marketing themselves openly as ‘not on Gamstop’, specifically to attract this group
- Value/bonus hunters: This group consciously chooses the illegal market because they believe it offers better value, better bonuses, or wider game choice. Players in this group are often unaware of the lack of safeguards
- Displaced consumers: This group is excluded from the legal market because of account restrictions or limitations. They’ve turned to the illegal market because they feel their custom is unwanted/they are unwelcome
- Everybody else: This group includes users who:
- Want to avoid checks on legitimate sites
- Remain anonymous (often using cryptocurrency)
- Don’t realise they’re using illegal sites
Combating the threat
The most important part of this section of the speech is of course, how the UKGC plans to tackle illegal gambling – and how they’ve been succeeding so far. Highlights include:
- 100,000 URLs reported, resulting in 264 websites being removed from Google
- Takedowns and raids on land-based illegal operations
- The successful disruption of upstream suppliers (for example payment providers)
Rhodes finished by reiterating that companies should take their own steps to ensure that the people they work with (ISPs, payment providers, search engines, software suppliers etc) are not supporting illegal gambling operators.
Innovation, innovation, innovation
Rhodes repeated the need for innovation in the industry, giving examples of where it has already worked well. Below is an overview and some suggestions of where the UKGC could look next.
Success stories
GamProtect is a highlight again here, showcasing how technology can be used to safeguard vulnerable customers without flying in the face of regulatory compliance. It was a collaborative effort that resulted in an innovative solution – two of the biggest buzzwords of the speech. But, in all seriousness, it has been a positive outcome.
New frontiers
While Rhodes didn’t highlight specific areas the UKGC were looking at for innovation, there are a couple that stick out:
- Blockchain technology: Not to jump on the bandwagon, but blockchain is already being used by some sites to demonstrate that their games are fair – provably fair. While it’s an expensive (and perhaps unnecessary) approach for all operators, it would be interesting to look into where it’s used, and if it’s working.
- Artificial intelligence: There are endless applications for AI and some sites are using it successfully already, in ways as simple as suggesting suitable games, or running a chatbot. Perhaps AI could be used to provide more personalized responsible gambling tools?
What was missing?
Rhodes’ speech was pretty all-encompassing. He painted an honest picture of the UKGC and the UK’s gambling landscape, but he couldn’t cover everything – and who could expect him to? However, there are some issues he could have spent a little time on:
Tackling emerging risks
Rhodes hinted at emerging risks a few times, but never actually spent any time on them. Being proactive is the only way to get ahead of the game. So, perhaps it’s important that the UKGC is more actively discussing new gambling formats like social casinos and esports betting. These are fairly new ideas and frameworks might need to be updated (or even created) to ensure that they remain safe.
Affordability checks
Contentious to say the least, affordability checks are divisive and it seems as though the UKGC has decided to plough on regardless and avoid ‘poking the bear’ by just not mentioning them at all. It would be great to see more honest dialogue about whether affordability checks are working, if operators are managing to implement them seamlessly, and what consumers’ opinions are now that they have been implemented.
Final reflections
Rhodes’ presented a brilliant and thorough overview of the gambling landscape in the UK, and the UKGC’s place within it. His key focuses on collaboration, transparency, and innovation were the perfect points to examine. These are all things we want to see in the gambling industry – and they’re all actionable.
While the speech is a long read, if you’re interested in the effect of the actions that the commission has taken and the plans it has for the future, you should take a look! The speech offers a promising vision, but the industry must continue to push for meaningful innovation, data-driven policies, and improved consumer trust.