While copyright issues and end user license agreements may be the main legal aspects that video game developers and operators have to deal with, those in the UK gambling sector are currently facing heavy regulatory enforcement. Once a game is made available and marketed to be played for real money to customers from Great Britain, game providers and suppliers all over the world automatically fall under the regime of the
UK Gambling Commission (UKGC), the authority that regulates gambling in the UK.
In 2015, new UK gambling laws were introduced so that the legal situation changed from one founded on mutual recognition to a regime that required gambling software providers and gambling site operators to obtain a UK gambling license. This applies to any remote or non-remote game or betting product that can be played for real money: betting, casino,bingo, lotteries and other forms of real-money gaming, as long as they target customers from the UK.
Which aspects were most affected by the new UK gambling laws?
The main areas that were significantly affected by this change in UK gambling laws were anti-money laundering, problem gambling (the protection of underage citizens and prevention of gambling addiction), and marketing (the way games and any related promotions and bonuses are advertised). All of this required developers and online gambling UK operators to implement so many measures that some of them withdrew from the market altogether, hence blocking UK players from playing their games for real money,while others ended up having to pay huge fines for non-compliance.
Heavy sanctions for non-compliance
The well-known online gambling site 888 casino, for instance, was fined £7.8m in 2017 for not taking adequate measures to protect problem gamblers, whereas Paddy Power Betfair had to pay £2.2m for failing to comply with AML measures. A report issued in July 2019 recorded £19.6m in total fines over the previous 12 months. Online gambling platforms were also fined for non-compliance on the part of their affiliates, who failed to display the significant offer terms, or who used media that was deemed to be appealing citizens under the legal gambling age.
All of this of course begs the following question: has the UKGC has gone too far with this enforcement? Clearly, too many operators are withdrawing from the market, which is also giving rise to a grey market.
Justification for the new UK gambling regulation
Neil McArthur, Chief Executive of the UKGC has justified this argument by insisting on the importance of fair and safe gambling: “I want gambling consumers in Britain to be able to enjoy the fairest and safest gambling in the world and I want gambling operators to work with us to put customer enjoyment and safety at the top of their corporate agenda.”
The situation may not be as dire as one may suspect, at least for the best gambling sites in the UK who have successfully complied with these measures. While a lot of their previous competitors have dropped out, those who remained have strengthened their position as reliable and safe UK gambling platforms. A lot of them are listed on
Casino Hawks, a review site that features exclusively those online gambling sites that possess a UK gambling license.
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