Gambling is popular all over the world but it is important that it is regulated. This is needed to ensure that gamblers are protected and the levels in which the industry is regulated varies around the world.
Recent years have seen the gambling industries in the UK, US and Canada enjoying huge amounts of growth. Let’s look at the situation in the US and Canada first.
Legislation has been passed that has legalized gambling in over 30 US states. Canada has also followed suit with law changes and private companies allowed to operate in the province of Ontario.
2023 saw total gross gaming revenue in the US go through the $60 billion barrier. That’s good news for the gambling companies but also for the American states that have made betting legal. One of the key reasons that they took this action was to receive the millions of dollars of betting tax revenue.
There is regulation of the gambling industry in the US. This has to take place to ensure for example that underage gambling does not take place. If that is the case then fines can be issued and licenses withdrawn.
The promotion of gambling to underage players is also something that will see action taken against. As states make betting legal, gambling companies publicize their products looking to gain a strong share of the new market. Regulatory bodies will do their best to ensure that it’s not underage players that are targeted.
There is also the ongoing battle against the unregulated gambling sites. There are still a high number of these and their members do not receive the protection seen at regulated sites. Nor do these unregulated sites pay tax on their revenue.
The level of taxation is a concern for US gambling companies. Rates aren’t too exorbitant in many states but in New York it’s 51%. The fear is that the future may see other US states decide to increase their tax levels.
Canada has also seen an expansion in their gambling industry. Private companies have been able to operate in Ontario since last year. This means more online sites and a lot more gambling tax being received. Operators need to be licensed and abide by its terms. This includes keeping track of how much customers wager with them and their behavioral patterns.
Different rules are in place in other Canadian provinces and it’ll be interesting to see how their approach to gambling changes in the future.
Now let’s take a look at the situation in the UK. The gambling industry has been established in the UK for a long time now. High Street shops were allowed to open in the 1960s and opening hours were extended in the Gambling Act 2005.
That law is now recognised as being outdated. It’s easy to see why because since it was passed, the internet has arrived and with improved mobile phone technology, people can gamble 24/7.
There is the need to reform the legislation passed 18 years ago. The Conservative Government pledged to do so during the 2019 General Election campaign. There has been a multitude of evidence gathered but all the problems in Downing Street have continually delayed the publication of a White Paper detailing how gambling reform will be achieved.
All of this has created uncertainty in the UK gambling industry. It’s difficult for established and new UK online casinosto plan ahead when you don’t know just what reforms are on the way. Making profit forecasts isn’t easy when those reforms may well affect the revenues that are going to be earned.
There continues to be concern over the harm that gambling can cause. The UK Gambling Commission have fined several companies for breaching social responsibility and anti-money laundering procedures.
Those fines hit gambling companies in the pocket but shareholders aren’t pleased either. Share prices fall when such fines are issued.
What will the White Paper on gambling reform include? Online casinos aren’t going to be delighted at its contents. That’s the area in which reform is needed and one measure that is likely is reducing maximum stake limits. Taking that action would see the profits of online casinos being hit. That happened in land-based betting shops when similar action was taken against gaming machines.
Stricter affordability checks and restrictions on products offered by gambling companies and bonuses are also likely to be introduced.
Other countries in Europe such as the Netherlands, Spain and Germany have already been getting increasingly stricter towards their gambling industries. With the UK following suit in the future, American and Canadian regulators will be keeping a close eye on what takes place.
They already examine the levels of gambling harm in their countries. If the figures were to increase, then the levels of regulation may be further on the increase in the future.
