A new report issued by accountancy firm PwC claims that overregulation of the online gambling market and the potential risks could push British gamblers towards the so-called “black” market.
The report, which has been commissioned by GVC Holdings and William Hill, has estimated the active unregulated gambling sector in the UK to about 1.2% of the turnover, or £1.4 billion. The research, however, unveiled that some regulatory changes set to ensure tougher rules for the gambling industry, such as stricter due diligence checks or credit card restrictions, could boost the risk of people choosing to gamble with unlicensed operators.
The results of the report were based on data which PwC has gathered through its partner Andy MacGilp in 2018 after interviewing 3,000 gamblers.
As a non-published summary of the report, which was cited by the Racing Post, said, further regulation of the sector may change the customer experience and fend off customers from licensed operators, pushing them to use the services of the black market. Of course, the research agency does not call for the removal of the gambling market regulation, but it highlights the fact that the relationship between the implementation of new stricter rules and some potentially unintended consequences should be considered more carefully.
The Right Balance Must Be Found by British Regulatory Authorities
Some restrictions on British customers’ gambling could be another breaking point, according to the information unveiled by the report. The analysts, who have been engaged with the research, say that anything that could affect local consumers’ gambling habits is a potential catalyst that could push someone to start gambling with a new, and even a potentially unlicensed operator.
People could be fended off the regulated gambling sector in case their choices for betting with licensed operators are limited or they cannot reach the products they want.
The report also claims that approximately 200,000 British gamblers, or 2.2% of the total number of players in the UK, have used the services of unlicensed gambling operators in 2018. Apart from that, the report also claims this trend was also applicable to other European markets which have made it harder for licensed gambling companies to compete. Such markets feature a higher proportion of gambling in the black market.
According to the interim chief executive officer of the Betting and Gaming Council, Wes Hilmes, the sector has accepted that changes would be made in the gambling industry regulation. He, however, agreed there must be a balance between raising standards and the result where these regulatory changes lead to. Mr Hilmes reminded that in the last few years, there has been a trend for raising standards in prevention, education and treatment of gambling addiction, so regulatory changes aimed at guaranteeing that were something normal.
A spokesperson of the UK Gambling Commission (UKGC) explained that the gambling sector in the country needed to channel its energy on raising standards to make the industry fairer and safer for local customers. The major gambling regulatory body in the UK pledged to continue working in collaboration with organisations and authorities to take quick action whenever it is necessary to tackle unlawful gambling operations in the country.
- Author
Daniel Williams
