Push for crackdown on illegal casinos

Push for crackdown on illegal casinos - Banner
Joseph Lee
by Joseph Lee Last updated:

Recent years have seen growing concerns over the prevalence of black market casinos, with particularly worrying patterns emerging in the Netherlands, France and Germany. 

Entain has now called for regulators to make tackling this issue a priority, backing a new report published by Regulus Partners. Regulus describes itself as a “global strategic advisory business focussed on the sports and leisure sectors”.

The Regulus report

Regulus’ report was unveiled by Entain CEO Barry Gibson at the SBC Summit in Lisbon recently. In support of proposals outlined in the report, Gibson said:

“Taking on the black market operators should be a key priority for policymakers around the world.”

The report presents a number of specific, actionable recommendations intended to target black market casinos and reduce illegal gambling in the UK. It also finds that, despite regulatory efforts, “black market participation in the UK is still growing”.

Laid out in Regulus Partners’ report are 5 overarching and “highly achievable” measures:

  • Forcing illegal casinos out of the market by working with banks to restrict payments to them
  • Specific advertising restrictions, particularly on social media
  • Utilising the new Online Safety Act to block the IP addresses of illegal casinos
  • Increasing the legal repercussions for unlicensed casinos
  • Publishing a publicly-available blacklist of illegal casinos

Crucially, Gibson drew attention to the negative impact of heavy regulations, stating that harsh restrictions can “encourage players towards the black market”. This alarming pattern has already been observed in several European countries in the past few years. Maximum stake limits and affordability checks have drawn extensive criticism. 

Wider support

Other entities have also weighed in, following an earlier report by consulting firm Frontier Economics, commissioned by the Betting and Gaming Council. This report, published earlier the same month, found that 1.5 million Brits currently wager £4.3 billion at illegal casinos each year. This is estimated to be worth some £67.7 million in taxes. 

The Betting and Gaming Council has called for “balanced regulations and stable taxation,” and has previously voiced concerns about the adverse effects of heavy-handed regulations. 

Black market operators pose a significant threat to the wellbeing of the industry as well as its players, and the UKGC must make every effort to counter them. In doing so, they must also avoid restricting gamblers in such a way that they are pushed towards illegal sites. The wider impact of the recent £2 slot stake limit, for instance, is yet to be seen.

Balance needed

There is a fine legislative balance to be struck, but Gibson suggests that the Regulus report’s proposed measures could be “highly effective, as long as the domestically regulated product offer remains attractive.”

Concluding his Lisbon speech, Gibson said: 

“If we go down the route of further tax increases rather than tackle the black market, it will drive even more customers towards unscrupulous operators and damage responsible, regulated businesses”.

Need to act quickly

The prevalence of illegal gambling in Britain is deeply concerning. The figures may not yet be as stark as those relating to some European countries, but authorities must act quickly and carefully if they are to stem the tide of players taking to illegal sites.