SBC News

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.