How Will the UK Gambling Review Affect the iGaming Industry

It’s been almost 18 months since the Department for Digital, Culture, Media, and Sport (DCMS) announced that it was launching an official review of the gambling industry in the UK. But we have yet to see any changes or even proposed changes to the laws. 

That could all change in the coming weeks as the department is preparing to publish a white paper that was originally due for release in December of 2021. 

The white paper is based on feedback from both consumers and gambling companies, and will outline any proposed changes to the UK’s laws on gambling. But what changes are expected and how will they affect the many iGaming companies operating in the UK and their software providers? 

Here’s what we know so far:

Advertising to be limited further

The government has already indicated that it will take a much stricter approach to restrictions on the advertising of gambling. In recent weeks, the UK Gambling Commission has introduced new regulations that prohibit companies from marketing their gambling products and services to at-risk gamblers or those who are susceptible to the harms of problem gambling. 

However, this is unlikely to be the only change. Gambling minister Chris Philp has indicated that more needs to be done to ensure that children are not exposed to online gambling adverts when using social media. Something that has already been identified as a potential trigger for problem gambling in minors. 

Free bets and promotions could face the axe

While there has been no indication as yet that free bets and promotions such as bonuses will be restricted, there’s a chance that the UK could follow other country’s leads in banning them outright. 

A complete ban would have a significant impact on how iGaming companies market their products. A quick look at the latest list of newly opened UK online casinos shows that free bets and similar bonus promotions are the primary strategy used by iGaming companies to attract new customers. Putting a stop to that strategy would be devastating for smaller providers and startups. 

With the UK iGaming industry now booming and tax revenues at an all-time high as a result, it’s hard to envisage the government hamstringing the industry in such a way, but stranger things have happened. At the same time, non GamStop casinos continue to attract players looking for more flexible gaming options outside UK restrictions. 

A ban on gambling sponsorship in sport 

There has been a lot of talk in recent years about the amount of money pumped into sport by gambling companies with a particular focus on football. There have even been reports that this could be banned completely in the upcoming review. 

While a ban on free bets and promotions would impact smaller iGaming providers, a ban on sponsorship deals will have a greater impact on larger companies. At present, almost every club in the Premier League has a formal sponsorship deal with a gambling company while seven have front of jersey sponsorship agreements. 

A ban on this type of sponsorship will have more of a positive impact on problem gamblers and those susceptible to the harms of gambling than it will a negative impact on iGaming companies. Bigger companies can easily afford to adopt other marketing strategies while football clubs can seek different sponsors. This makes it highly likely that this particular change will come into effect. 

What does this mean for the iGaming industry?

As mentioned earlier, the UK iGaming industry is booming. This is largely due to the global pandemic and lockdowns that saw a notable spike in online betting activity. In short, the iGaming industry has never been healthier with dozens of gambling startups launching to meet the significant rise in demand for both products and the tech that drives them. 

There are fears that smaller companies may feel the impact of new restrictions and limitations on their ability to market freely. However, these changes have been talked about for more than a year and if true, they are unlikely to be enacted for some time. These companies have had plenty of time to prepare for the review and will most likely continue to prosper. 

With regards to tech providers, new restrictions and regulations could even be seen as a boon to some. This is because there will undoubtedly be a demand for further tech solutions that allow betting companies to remain compliant with any new rules and restrictions. 

What is the gambling review timeline? 

The government has indicated that the gambling review white paper will be published in June of 2022 at the earliest. However, it’s worth noting that the white paper will merely propose changes to the laws and regulations. These proposed changes will still need to be discussed by the government and members of parliament before they can be signed into law.