BetSmart Consulting founder Kirsty Caldwell has highlighted the risks of not balancing responsible gambling measures with wider market conditions, after a rise in black market activity during the pandemic.
Speaking at SBC Barcelona last Thursday (September 23), Caldwell suggested the rise in black market activity in Sweden after it introduced harsher consumer protections during the pandemic, may point to learning for the industry as a whole.
“There has been an uptick in black market activity since the covid measures were released in Sweden. I think it will be very interesting to see if that changes at the end of this month when those covid measures are rolled back, I think it’s a really good case in point”, she said.
Referring to PwC’s Review Of Unlicensed Online Gambling In The UK report, published in February, Caldwell added: “There’s been k a double in turnover of black market activity. And we’re talking billions of pounds here. This is not, it’s not a small number. Also, almost a doubling in the number of active UK players who are placing bets with unlicensed operators.
“It’s very difficult not to be able to tie that back to the stricter requirements that the UK is facing, particularly in terms of affordability. And so, I absolutely do think that there needs to be a balance, and a one size fits all approach to managing customers gambling activities is not appropriate.”
Turning to the UK market, BeBettor co-founder Harry Cott ran through forthcoming changes to UK legislation, including updates to license conditions and codes of practice (LCCP), which are pending imminently, along with a consultation on deposit and loss limits, not to mention the publication of the outcome of the Gambling Review.
While he said it was too soon to know whether any of this would have an impact on channelisation in the jurisdiction, the panel shared a concern that too much change could potentially threaten the UK’s world-leading regulatory position.
Entain SVP of American regulatory affairs Martin Lycka said: “It would be a shame for the UK, if it were to lose this status, because indeed for years it has been one, if not the, leading light when it comes to online gambling regulation. Plus, as I suppose everyone will know, the UK-facing industry has gone to many lengths to ensure that we would further step up our efforts in terms of consumer protection, so I’m hopeful that all these efforts will not go to waste.”
Meanwhile, Lycka said that while the initial focus in the US is on licensing and ensuring that operators who are willing to operate in a regulated environment are attracted to operate, to the exclusion of those that are not, it is a “no brainer “that the focus will eventually shift to responsible gambling and the subject will gain prominence. He noted that this had long been the case for the land-based industry in the US.
“What I would expect to happen is that this topic will be tackled, with an ever-increasing prominence and momentum not only by the state of New Jersey – needless to say, the Trailblazer and leader in this space across the American nation – but ever increasingly likely so by the other states”, he said.
Lycka also highlighted the importance of educating consumers, which Caldwell agreed was a vital piece of the puzzle.
She highlighted recent research from Ontario, Canada, which seemed to show that while the UK’s whistle-to-whistle ban on gambling advertising during televised football matches had led to a decrease in exposure of gambling products to minors through that medium, there was evidence of a rise in the number of underage people following gambling operators on social media.
