UK

The UK Gambling Commission (UKGC) has increased its regulatory scrutiny of Adult Gaming Centres (AGCs) throughout this year.

Andrew RhodesCredit:UKGC
This was confirmed by UKGC CEO Andrew Rhodes himself in his speech during amusements trade body Bacta’s Annual Convention in Leeds.

Rhodes confirmed that official communiques were sent out by the regulator to all licensed AGCs earlier this year, reminding them of obligations around self-exclusion.

Although not directly referenced, this move could’ve been prompted by an undercover BBC investigation published back in June where a reporter was allowed access to multiple AGC venues in South England despite self-excluding themselves prior to that.

At the time, John Bollom, then-President of Bacta, criticised the investigation for being “unrepresentative” of the land-based arcade sector that the organisation represents – words also echoed by Rhodes in his latest speech.

“The media coverage often implies that one case or one example is indicative of the industry or sector as a whole. You know, this may be unfair, but it is the reality,” the UKGC CEO said.

“Earlier this year, the Commission wrote to all adult gaming centre licensees to remind them of their obligations around self-exclusion.

“Unfortunately, despite the warnings, some operators weren’t taking their responsibilities seriously. At the start of this month we announced that we had taken decisive regulatory action.

“Seven AGC operators have seen their operating licences immediately suspended this year for failing to be part of a self-exclusion scheme. While most of those licences have since been reinstated following clear steps to remedy failings, all operators concerned remain under investigation, which may result in further regulatory action being taken.”

Illegal land-based gambling ripe for culling
Whether or not the UKGC was reminded of its land-based compliance assessment duties by the BBC report remains a topic of speculation. One thing, however, that remains fully within the UKGC remit and which the regulator never leaves out of sight is funding.

The 25 November Budget announcement by Chancellor of the Exchequer Rachel Reeves revealed a total of £26m of additional funds set aside for the regulator, to be granted over a period of three years.

This was warmly welcomed by the UKGC and the importance of the announcement was further emphasised by Rhodes’ words: “In my 20 years on executive boards of public bodies I’ve never known that kind of multiple from the Treasury ever before.”

The top honcho of UK gambling regulation additionally revealed that the money will be used specifically to push back against illegal land-based gambling, but what exactly that fight will look like still remains to be seen.

The UK Gambling Commission (UKGC) signed a joint declaration against black market gaming with its peers in Europe on the morning the government increased taxes and a £26m war chest to fight unlicensed operators. The government said that the tax rises will cause some leakage to the black market, which it factored into its sums.…

One of the biggest casinos in Leeds’ city centre is operational once more, as the UK Gambling Commission (UKGC) has lifted the suspension of VGC Leeds Limited’s licence, the operator of Victoria Gate Casino.

The casino had its licence suspended earlier this month by the UKGC due to significant anti-money laundering concerns, commencing a review of its operations.

However, that suspension has now been lifted by the commission, as of earlier today, following widespread changes by the operator.

The UKGC stated that VGC Leeds was “reasonably believed to have failed to maintain and implement effective anti-money laundering policies, procedures, and controls” when suspending the operator.

This included “the adequacy of decision-making processes and the Licensee’s response to identified anti-money laundering and counter-terrorist financing risks”, with the commission noting that this raised questions about the operator’s overall governance and risk management arrangement effectiveness.

Widespread changes

Victoria Gate Casino has its licence once more following improvements, but monitoring of its operations will continue to ensure it stays compliant with regulatory requirements.

“On 25 November 2025 the suspension of VGC Leeds Limited’s licence was lifted following significant action taken by the operator,” stated the UKGC.

“This has included widespread changes to the casino’s leadership, AML and compliance supervisors, implementation of new anti-money laundering and safer gambling policies and procedures, improved staff training on AML and social responsibility, and a commitment to undergo an independent audit within six weeks.

“During the course of the ongoing review, the Commission will continue to monitor the operator closely to ensure full and sustained compliance with the Licensing requirements is achieved.”

Videoslots AML fine

While Victoria Gate Casino is now allowed to operate once more, Videoslots Limited, the operator of Videoslots, Mr Vegas and Mega Riches, has been ordered to pay £650,000 for AML and social responsibility failures.

A UKGC investigation found that one customer was able to fund their account in excess of £75,000 using digital pre-payment vouchers, before transferring the proceeds of their gambling activity to four different bank accounts.

Despite the presence of these high-risk factors, the customer’s automated AML risk score did not trigger the threshold for the operator to request source of funds information promptly, “leading to unacceptable delays in an account review taking place”.

The investigation also found failures with Videoslots’ deposit limit mechanism, as well as its monitoring systems not identifying customers who are at risk of potential gambling harm effectively.

As a result, the operator received a financial penalty, a warning and will undergo a third-party audit to ensure AML and safer gambling policies and procedures are being implemented.

A Labour MP has launched a tirade against gambling industry adverts, claiming that “nobody wants to see them”.

Alex Ballinger, MP for Halesowen and a consistent advocate for greater taxation and regulation of the gambling industry, implied the industry should reset its priorities as stakeholders continue to raise warnings over the potential implications of tax rises.

The accusations come after figures were published by The Guardian, which estimated gambling companies, including the lottery, spent £2bn on marketing in 2024.

“Perhaps gambling firms should think about cutting back on adverts that nobody wants to see before pushing back against paying fair taxes on their vast profits, particularly given the harms they cause,” Ballinger said, as he described the £2bn figure as an “astronomic sum”.

Ballinger was among the 101 Labour MPs who signed a letter in September urging Chancellor Rachel Reeves to take a “polluter pays” approach to taxing online gaming, arguing that the sector faces a lighter financial burden compared to markets such as the Netherlands and Austria.

The group joined think tanks, opposition parties and the former MP Gordon Brown in piling pressure on Reeves to target gambling ahead of the UK budget.

In response, industry leaders have warned of significant consequences if the sector’s financial burden is increased as part of Wednesday’s (26 November) budget, including the prospect of job losses, venue closures and a reduction in investment within the UK sector.

BGC battles back

Chief among those battling on the gambling industry’s behalf has been the Betting and Gaming Council (BGC).

The industry body has refuted The Guardian’s report, claiming that the true figure sits closer to £1bn and has declined in recent years, while also warning that “undermining” advertising spend by regulated operators plays directly into the hands of the UK’s black market.

“20% of all broadcast and digital advertising is dedicated entirely to safer gambling messaging, a voluntary commitment made by the UK industry,” a BGC spokesperson said.

“Further tax rises would simply drive more consumers towards the growing black market that offers no age checks, no safer gambling tools and no tax contribution, while undermining advertising spend that differentiates the regulated market.”

Fears over black market advertising are not unfounded. A Reuters report published last month raised major concerns over the extent of fraudulent ads across Meta’s platforms, including for online casinos.

According to the report, the tech giant projected that 10% of its overall annual revenue for 2024 – roughly $16bn – came from running ads for scams and banned goods.

These concerns were also echoed by Eilers & Krejcik’s industry analyst, Alun Bowden, who questioned how people will navigate the “almost invisible” barriers to the black market.

A recent study from the UKGC revealed that only a minority of players are aware that they have strayed into the illegal market.

“In a world where one site can look much like another on the surface, and the differences are in the nuances underneath, then how do you stand out?” said Bowden.

“If you reduce advertising spend significantly, then you give more parity to black market operators who are increasingly spending more on SEO, affiliates, streamers and social media.”

The UK Government has intervened in the surge of engagement within prize draws and published a voluntary code for the sector.

Those in the UK will be increasingly familiar with the increasing number of advertisements across television and social media offering the chance to enter draws to win prizes such as houses, cars, and other luxury items for as little as a few pence.

However, due to offering a free entry route, prize draw operators are not required to apply for a gambling licence.

In response to the growing popularity – 7.4 million adults take part in prize draws annually in the UK – the Department for Culture, Media and Sport (DCMS) has published a new voluntary code of conduct for the sector. The government is making significant efforts to strengthen player protections and increase transparency and accountability around the vertical.

Gambling adjacent

Although not licensed by the UK Gambling Commission, DCMS points to the significant similarities between the two sectors, noting that 88% of prize draw participants also participate in gambling or lottery activities.

For comparison, this figure is just 60% for the wider population.

Given the similarities, many of the proposed measures are akin to those found within the gambling industry.

The voluntary guidelines require operators to implement robust age verification checks, introduce spending limits and suspensions for players to reduce gambling risks and adhere to a £250 per month cap on credit card transactions.

There must also be greater transparency around the rules for entering and how prizes are won, as well as clear guidelines on how charity-supporting draws support their causes in line with fundraising regulations.

Pivotal moment

The new rules, due to come into effect from May 2026, represent a “pivotal moment” for the industry, according to Pinsent Masons’ prize competition expert, Scott Oxley.

“While not legally binding, it sets a clear benchmark for transparency, consumer protection, and accountability,” he said. “Operators who ignore it risk reputational harm and may accelerate the move towards statutory regulation.”

So far, the code has 46 signatories from operators, including the industry leader Omaze, as well as 11 from other relevant parties, such as web developers.

Although voluntary, it’s clear that the flourishing nature of prize draws means that the sector will continue to garner greater attention and scrutiny from lawmakers.

As a result, Oxley added, early adoption of the rules will gain a competitive advantage as standards such as clear disclosure of routes and responsible play messaging become the norm.

“Those who lead on these standards will build consumer trust and reduce regulatory risk,” he explained.

“The code is voluntary today, but its principles will shape tomorrow’s regulatory landscape. Proactive engagement positions operators ahead of the curve and demonstrates a commitment to integrity in a fast-growing market. Those who do not adopt it are likely to face greater scrutiny from the regulators.”

The British Columbia Lottery Corporation (BCLC) has partnered with Canadian registered charity GenWell to launch its Human Connection Project.

BCLC’s Human Connection Project aims to foster stronger and healthier communities in the province through on-the-ground projects, community impact initiatives and partnerships.

GenWell provides education programming across Canada, and BCLC will work with the non-profit to amplify opportunities for human connection across its organization, including in its community initiatives and its employee programs. GenWell will provide resources including research gathering, resource development and project planning and activation.

“At BCLC, giving back to community has always been part of our DNA,” said BCLC President and CEO Pat Davis. “Since 1985, our net profits – more than $30 billion – have supported communities, provincial programs and services, local employment, charities and major events that have helped shape B.C.

“This year, we decided to use our presence in communities across B.C. to focus our social purpose, which is to generate win-wins for the greater good. We’re excited to work with GenWell to help BCLC and communities raise awareness of the importance of human connection and how we can embed it in the work we do.”

“Human connection isn’t just a ‘nice-to-have’,” added GenWell Founder Pete Bombaci. “We know that meaningful social interactions can improve mental and physical health, strengthen communities and even boost resilience. That’s why we’re proud to work with BCLC, to help promote the importance of human connection across our communities and throughout day-to-day life.”

Partners to work on community projects and events
Together, BCLC and GenWell will co-create local projects and work to improve gathering spaces in communities in B.C., working colaboratively with the communities themselves.

Initiatives will include creating new games and experiences, building new partnerships, launching community events or shared spaces for great social outings.

While the project’s work will span the entire province, BCLC will celebrate the Human Connection Project’s launch in Kamloops, which has been the home of the lottery’s headquarters for 40 years.

BCLC is the presenting sponsor of Kamloops’ inaugural Christmas Market, which runs until Nov. 30. It has set up a Connection Corner for community interaction (pictured above), featuring some of its community partners including United Way, the Kamloops Symphony Orchestra and Western Canada Theatre.

The lottery is also running a Scratch & Win ticket promotion that gives players the chance to win a top prize of $10,000 for themselves and $10,000 for a registered B.C. charity of their choice. Earlier in 2025, BCLC collaborated with Vancouver Canucks owners Canucks Sports & Entertainment to host Nourish the Neighbourhood to provide meals for residents of Vancouver’s Downtown Eastside.

The Gibraltar Gambling Commissioner has issued a formal caution to Unibet in response to a £10m fine issued by the UK Gambling Commission (UKGC) for anti-money laundering and social responsibility failings.

Platinum Gaming Limited, which holds a dual licence for the UK and Gibraltar, received the original penalty from the UKGC in October, as well as a warning and it will be subject to a third-party audit to ensure that AML and safer gambling policies, procedures and controls are being implemented effectively.

Gibraltar’s regulator is issuing a formal caution to Unibet as the case highlights “fitness and propriety” concerns for the operator, in addition to impacting the “reputation of Gibraltar”.

However, the Gibraltar Gambling Commissioner will not be imposing a financial penalty on the operator for the following reasons:

Historical nature of the failings in 2023 – case completed by UKGC in October 2025, after 21 months from the date of the relevant site visit.

A significant financial penalty has already been imposed.

Systems and controls related to the Gibraltar regulatory regime have been improved and are now considered satisfactory, pending a third-party review.

The regulator said: “Licence holders which are dual licensed are reminded that they are expected to comply with the AML/CFT/CFP regime not only in Gibraltar but also in other relevant jurisdictions in which they operate.

“Any Gibraltar licence holder which is subject to a regulatory sanction in another jurisdiction for AML/CFT/CPF breaches can expect the circumstances of that case to be reviewed by the Gibraltar Gambling Commissioner and the possibility of a public statement being made as to findings.

“Further enforcement action on the part of the Gambling Commissioner cannot be ruled out where it is justified by the circumstances. The fact that a formal caution has been issued will be taken into consideration if other matters come to light in the future.”

iGaming Expert has reached out to FDJ United for comment on the formal caution issued to Unibet by the Gibraltar Gambling Commissioner.

UKGC penalty

In its report, the UKGC illustrated major faults in Unibet’s customer interaction systems, including failing to spot and act on clear harm markers.

Customers lost thousands of pounds in a few hours or days of registration, players breached loss limits repeatedly and consumers showed binge gambling patterns without appropriate intervention.

One customer exceeded their loss limit of £2,500 within 16 minutes of registering and another lost £5,000 within 24 hours.

AML failures were also highlighted, including gaps in risk assessment, which resulted in customers who previously had their accounts closed by the licensee before 2023 being able to open new accounts and gamble.

It was also deemed that there was a lack of clarity in the company’s AML policy around due diligence thresholds and customer reviews failing to include potential high-risk factors.

This is the second time Platinum Gaming has been subject to a fine by the UKGC for AML and social responsibility failures, as the operator received a £2.9m penalty by the commission in 2023.

AML and safer gambling ‘a top priority’

In response to the UKGC penalty, an FDJ United spokesperson told iGaming Expert last month that AML and safer gambling are “a top priority” to its senior leadership and that the independent review will show that necessary steps are being taken.

“Platinum Gaming Ltd, the operator of Unibet in the UK and an entity of FDJ UNITED (at the time under the management of Kindred Group), acknowledges the UKGC’s finding that legacy monitoring technology was not sufficiently effective at the time of the review (i.e. from January 2023 to May 2024),” said the spokesperson.

“As a result of the findings by the UKGC, Platinum Gaming has implemented new software solutions and risk management frameworks across anti-money laundering and safer gambling, providing a detailed knowledge of customer risk, allowing for near real-time automated alerts and customer interventions.”

The spokesperson added: “FDJ UNITED remains committed to the highest compliance standards and player protection policies. As part of this, the Group will continue to evaluate the effectiveness of and improve its processes and tools to meet these standards.

“Senior leadership have safer gambling and anti-money laundering as a top priority in operational discussions, as well as a priority in the Group’s strategic agenda. FDJ UNITED will continue to work closely with the UKGC on this matter and remain confident that the external review will show necessary steps have been taken.”