Since the rollout of the iGaming laws in the UK, casino operators have had a dire need to strike a balance between responsible gambling and keeping shareholders happy through revenue growth. This has been quite difficult, especially with the UK casino gaming regulations leaning more towards player safety, compromising online casino revenue. This read closely examines whether operators can toe the line and adhere to the current rules while raking in profits. To understand this, you must first look at the current market size of the UK iGaming industry.
Growth of The UK Online Casino Industry Market Size
The UK iGaming market has been experiencing rapid growth since the passing of the 2005 Gambling Act due to limited restrictions by regulators. From April 2021 to March 2022, the UK generated over £6.44 billion, making up a significant portion of the global online iGaming market. With such a fantastic performance, the number of new iGaming platforms in the UK has increased, making it overwhelming for players to find the best UK online casino that will fit their needs and preferences. The use of fair, honest, & unbiased casino reviews becomes a valuable tool for players, offering helpful information and insights. That way, players can make informed decisions and find a casino that will meet their specific requirements. According to research, the industry is expected to experience an incremental growth of $2.83 billion by 2026. However, the market growth will decelerate at a CAGR of 5.25% due to the unfavourable restrictions that aim to protect UK players online. In fact, the amendments have seen some brands withdraw their services from the country. But this will only drag the growth rate of UK online iGaming revenue and not stop it.
The UKGC Position in Ensuring Player Safety
Since 2007, the UK Gambling Commission, popularly known as the UKGC, has been regulating online casinos to ensure fair and open entertainment for all. The regulatory body is behind the Licensing Conditions and Codes of Practice or LCCP, a document with a set of guidelines that operators must meet to hold and retain the Gambling Commission License. The document addresses various aspects of player safety, including money laundering, but the main focus here is on player safety. According to LCCP, every operator must guarantee players gamble responsibly by ensuring they don’t end up with an addiction or debt. However, the continuous update of the Licensing Conditions and Codes of Practice has seen operators experience a hard time adhering to the laws while growing their revenue, with some brands finding ways to bypass the stipulations undetected. As a result, this has led to multiple crackdowns in the industry, with the UKGC targeting operators that don’t comply with responsible gambling laws and those operating without a verified permit. Some of the LCCP amendments choking the life out of the casino operators include banning the autoplay and bonus buys features. According to the regulator, the autoplay function greatly increased players’ activeness in online casinos. After all, with a single push of the button, you would spin the reels of slots a couple of times. On the other hand, the bonus buy feature saw players spend more cash purchasing specific functionalities to make gaming much more exciting. The laws also limit the use of credit cards when gambling and control how brands advertise promotions to clients. This explains why most online casinos in the UK decline the use of MasterCard and VISA. Unsurprisingly, the UKGC also prohibits iGaming brands from sponsoring sports teams to curb the spread of the pastime. The strictness is weighing heavily on online casino operators and other unregulated betting activities, given the recent clampdown on illegal gambling rings and penalization of brands that don’t comply with the rules.
How Casino Operators Are Creating a Fair Balance Between Revenue Growth and Problem Gambling
Abiding by responsible gambling laws comes with setbacks that threaten the revenue growth of online iGaming companies. However, UK online casino operators have no choice but to work with the set stipulations to avoid hefty fines that come with any form of law infringement. For instance, in 2022, the UKGC ordered Entain to pay £17 million fine for regulatory failures. Such penalties eat into the business’s profits that would have helped to advance the gaming experience. With that said, operators are creating ways to balance revenue growth and problem gambling. For instance, casino sites are currently taking advantage of no-wagering bonuses. This simple idea easily powers revenue growth while upholding player safety. With no wagering bonuses, casino operators can market their services to eligible players and upsurge traffic to their sites. After all, it is apparent that gamers love bonus offers; these enable them to play more while spending less at online casinos. This has seen brands increase profit margins while observing/maintaining LCCP guidelines. After all, thanks to no wagering offers, players don’t have to play through the bonus or bonus and deposit a certain number of times to make their winnings withdrawable. Besides, the UKGC clarified that operators needed to review all promotions with wagering requirements, especially the welcome bonus. This is because rollover requirements facilitate excessive play, which goes against responsible gambling laws. Most online casinos operating in UK also concentrate their resources on player safety by working with different social sites such as GamStop and BeGambleAware. The partnership has seen millions of players with gambling addiction get timely help. Moreover, online casinos have self-exclusion programs that allow players to take a break from the game sessions. The break can be of six months or a year. Clients don’t receive promotional messages during the time-out until the stipulated period is over. Lastly, most operators have a function that allows players to set wagering limits. The option fosters bankroll management among players, an aspect considered responsible gambling.
Bottom Line
It is apparent that the UK Gambling Commission is not willing to compromise player safety. In fact, the regulatory body is always making amendments to ensure players are fully protected online. With this in mind, operators are developing ways to balance LCCP requirements with profitability. But then, with regular amendments to the UK Gambling Laws, there is fear that the strict rules may end up straining the relationship between players and local operators, leading to the mass migration of UK citizens to offshore online casinos. This will likely bring more harm than good as the regulatory body will be unable to control players’ online activities. However, there is a sense of relief thanks to the invention of sustainable products like no-wagering casino bonuses. These rewards are praiseworthy since they keep players safe while adhering to every LCCP rule. But then, the idea will only hold for a while. Operators are, therefore, under pressure to carve up additional ways that will help them achieve the balance between company profitability and player safety.
