The UK is usually held up as an example of a country with a mature and well-regulated betting and gaming industry. The law is reasonably clear, and the industry doesn’t suffer from the grey-area issues of countries like Australia and Germany. The regulated industry generates around £15 billion annually, contributing to job growth and tax revenue. In short, while there will always be criticisms of the gambling industry, some of which we will look at below, it is seen as healthy in the UK.
However, a buoyant betting and gaming industry does not overlook the fact there are plenty of challenges on the horizon. Below we are going to look at five of those challenges, specifically for the online casino industry. It will tell us something about the betting and gaming industry, of course, but also about how cultural and societal changes are occurring:
Challenge 1: Changes in Gaming Tastes
There is some truth to the assertion that millennials don’t play casino games, although it is likely as hyperbolic as saying millennials spend all their money on avocado toast. Regardless, there is a sense inside the industry that the games on offer must change to suit evolving tastes. A typical UK blackjack game at an online casino will always remain popular, of course; after all, those games have been popular for centuries. But you might see casinos move into, for example, something similar to the eSports betting market and skill-based gaming in an effort to drive millennials to their product.
Challenge 2: Over Regulation
The regulation of FOBTs (fixed odds betting terminals) in bookmakers’ shops got a lot of publicity over the last few years, but it is perhaps overlooked that is might extend to online gaming. At the moment, online casinos offer a range of tools so that players can set limits (on how much they spend and how long they spend playing). Those tools are effective, requiring, for example, cooling-off periods before you can deposit again. The casino industry usually welcomes regulation, but there is a feeling that some of the excitement might be lost if the law goes too far.
Challenge 3: Cryptocurrency
Cryptocurrency and blockchain technology hasn’t quite been the gamechanger that experts predicted, but there is still time for that to change. UKGC licenced casinos are not yet permitted to accept payments in Bitcoin and other cryptocurrencies, as the regulators are not convinced they offer enough transparency. There is a push for KYC (know your customer) policies to combat fraud and money laundering, and it’s not quite clear where crypto will fit in with all that vis-à-vis online casinos.
Challenge 4: Marketing and Advertising
Half of the Premier League clubs now have gambling advertisements on their shirts, and 17 of 24 of the EFL Championship clubs for the 2019/20 football season. It’s an incredible statistic, but one that could change overnight if the government decides to pull the plug. In an effort to offset any future regulation, many betting and gaming companies have decided to advertise responsible gambling. It’s laudable, but it still might not be enough to satisfy regulators. The shadow of an advertising ban always looms over the betting and gaming industry.
Challenge 5: Competition and Market Saturation
Anyone can launch an online casino today, as it only takes a bit of capital and the correct software. However, launching a good online casino takes a lot more work. The market is already awash with hundreds of sites, many of which we would advise you to avoid. If you do play at an online casino in the UK, make sure the UK Gambling Commission regulates it.