UKGC: operators must make black market ‘commercially toxic’ for suppliers
The UK Gambling Commission (UKGC) is urging regulated operators to carry a fair share of the burden when it comes to battling back against the black market by making it “commercially toxic” for third-party companies to supply them.
This was the message from the UKGC’s Executive Director, Tim Miller, to industry stakeholders at ICE when addressing the current state of the UK gambling, stating that licensed operators in the market can’t “have their cake and eat” it.
Miller praised the increasing alignment between regulators and the legitimate industry on the importance of tackling the illegal market, adding that the commission is taking action.
He said, between April and December last year, the UKGC issued 592 cease and desists to advertisers and operators, reported 327,964 URLs to various search engines with 203,571 URLs removed so far, referred 839 websites to the search engines for delisting and disrupted 627 websites so that they have either been taken down or geo-blocked.
Miller argued that, as much as regulators and governments need to be aware of the impact they could have on channelisation rates with their decisions, operators need to be mindful of the role they could be playing in growing the threat of the illegal market.
“If we want consumers to make well-informed choices and, if not experiencing harm, remain in the licensed market, then there needs to be clear blue water between that and the unlicensed space,” noted Miller.
“But at the moment, the dividing line is being muddied by those who want to be a part of supplying legitimate, regulated operators, yet are either indifferent to whether they also facilitate the illegal market or are actively seeking to play both sides.
“Gambling regulators across the world are increasingly identifying suppliers, affiliates, advertisers, tech companies and others that work with licensed operators but who are also providing the same services to the illegal market.”
Miller stated that it must be made “commercially toxic” for any supplier to work with an unlicensed operator, even if it results in short term impacts of some competition reduction and consequential upward cost pressures, as it’s a “small price to pay” to not help build the illegal market.
He encouraged operators to go through a checklist before making partnerships, asking how they’re addressing the illegal market threat, their due diligence, as well as contractual provisions that can be put in place to make sure such deals don’t happen.
He continued: “As regulators, we will seek to use the powers available to us to take appropriate action against those who facilitate the provision of illegal gambling. However, when pulling the lever marked ‘legal action’, there is a hard reality that dragging a cloud services company based in, say, California or an affiliate marketer based in Curacao through the domestic courts will not always be practical or possible.
“That’s why, alongside a regulatory or law enforcement response, there is an important and essential role for industry to play. A role that is further upstream. A role with the aim of commercially strangling those third parties that facilitate unscrupulous operators to steal your customers or exploit vulnerable consumers.
“As a global, regulated industry, you have significant economic muscle and considerable commercial leverage. And for all of us here today with a shared desire to fight against the illegal market- well, I think we have overlooked this important and powerful weapon in our arsenal. And it’s time we deploy it.”
Meta
Miller also addressed Meta, which he says has seen more adverts for illegal online casinos appearing on their brand platforms using ‘not on gamstop’ signage to target customers who have self-excluded using GamStop.
The UKGC has been in contact with Meta about the issue, but Miller has stated that they have made “very limited progress” and that they should be doing more to fight against the illegal market.
“Their suggestion was that we should deploy AI tools ourselves to monitor and find these ads and then report them,” he said.
“I would be very surprised if Meta, as one of the world’s largest tech companies, is incapable of proactively using their own keyword facility to prevent the advertising of illegal gambling. It could leave you with the impression they are quite happy to turn a blind eye and continue taking money from criminals and scammers until someone shouts about it.”
Outlook
The recent additional £26m in funding the UKGC has received from the government through last November’s budget was addressed by Miller, who noted that it “recognises the success” the commission is starting to have.
The Government’s Crime and Policing Bill, currently at Committee Stage in the House of Lords, will also allow the UKGC “to obtain orders to suspend internet protocol – or IP – addresses and internet domain names linked to illegal gambling” when enacted. A comprehensive programme for its work against the black market is also in development.
“It’s also worth remembering that the Commission alone won’t be able to solve the challenge of illegal gambling,” added Miller.
“Success will only come through strong collective action with government, with international regulatory colleagues, with industry and with others so that we can hit this criminal market and those who provide succour to it from as many angles as possible – using regulation, using prosecutions, using legislation, using technology, using commercial pressure, using hard powers, using soft powers. Using everything in our collective arsenal.
“No one actor in this space can win this battle alone – we need to work together. We need to work together to ensure that there is no room for suppliers and other companies who want to benefit from the legitimate industry, whilst also actively undermining our collective efforts to tackle illegal gambling operators.
“Government, regulators and industry should no longer tolerate anyone having a foot in both camps. It’s time to work together. It’s time to force them to pick a side.”