The casino industry has undergone a rapid makeover over the last decade and is now considered a mainstream form of entertainment. The previous taboos surrounding gambling that once existed have been slowly eroded, replaced by organisations trying instead to help people avoid problems such as addiction, such as Gamstop and GamCare. Casino gaming now comes mainly in a digital format and online casinos are being recognised by many governments around the world as a supremely profitable source.
With a projected revenue of £ 11.01 billion for 2024, the UK sits second in the table for this metric behind the US (£18.41 billion). Despite the sizeable amounts generated by the online gambling industry, the UK is pushing on with new regulations to limit spending on online slots, as well as introducing “invisible” affordability checks for players incurring large losses. This begs the question; how do you get the most out of a thriving online casino industry that can potentially be harmful?
Find the balance between responsibility and profitability
The new regulations mentioned above are designed to help vulnerable players and keep them from issues such as addiction or bankruptcy. However, this has come at a cost with many within the online casino industry speaking out against the new rules. The £2 limit for players between the age of 18-24 and £5 maximum for over-25 players has drawn criticism from online casino operators, who are worried about the effects on revenue numbers.
While many online casino enthusiasts play on platforms with UK licenses, there is also a concern that this customer base might start playing on EU casinos at bestnongamstopcasinos, which houses platforms that are outside the jurisdiction of the UK Gambling Commission. The UK is an interesting case, because unlike many countries, gambling has been a traditional passed time spanning over centuries. However, despite the criticism, many eyes will be on the findings of the new affordability pilot project, once it potentially concludes at the end of April 2025, to see whether the regulations have any effect on the revenue numbers.
Lower revenue could lead to less quality
Although the UK ranks high in projected revenue, online casino providers are concerned that the UK will plummet down the table on the back of new regulations. This is mainly because any potential loss of revenue will most likely be reflected in the quality these operators can provide for customers. Owner of Paddy Power and Sky Bet, Flutter, believes the new White Paper could potentially cost the UK economy up to £100 million per year.
Should this be the case, losses would ultimately be down to customers taking their business elsewhere. Investment in the online casino industry could provide the required funds to improve mobile apps and usability, include more games from reputable game developers, and in turn, boost the UK economy. Any profitable returns funnelled back into society would always be a net win for politicians and the country as a whole.
Although it is an area of different proportions, the independent Alderney Gambling Control Commission was able to grant the island £2.3 million of profit to invest in society. Policy and Finance Committee chairperson, Nigel Vooght said, “we remain committed to looking at new opportunities to generate income.” For the UK, the opportunity is already there, striking the right balance, managing, and maximising it is the next task.
