Andrew Rhodes, CEO of the UK Gambling Commission (UKGC), recently gave a speech during the International Association of Gaming Advisors (IAGA) webinar. This webinar, titled Setting the Gambling Agenda for 2025: A Less Political Year? is a significant platform for industry leaders to discuss and set the future direction for the gambling sector.
Having faced much scrutiny over the previous year, the UKGC is under the spotlight to address several pressing issues. These include tightening compliance among operators, intercepting illegal gambling activities, and improving player protection measures. The recent investigation into Evolution Gaming for suspected black-market activity, which refers to unlicensed and unregulated gambling operations, has further intensified the focus on the UKGC’s effectiveness.
The critical question for the IAGA webinar was: will this year be less politically charged for gambling? Andrew Rhode’s speech highlighted the challenges and opportunities facing the sector. He also contemplated recent controversies keeping gambling at the fore of political and regulatory debates.
The gambling industry is reaping record revenues amid continual black-market threats and polarising reforms. Its role has never been more pivotal.
Key themes from Rhodes’ IAGA speech
Andrew Rhodes’ speech at the IAGA webinar detailed the UKGC’s regulatory priorities for 2025 and addressed key challenges in the gambling sector. This follows his detailed speech at the CEO Briefing on 14 November 2024 where he shared insights into the current state and future of the British gambling industry.
- Gambling industry growth and economic challenges: Rhodes highlighted the Gross Gambling Yield (GGY) reaching its highest-ever recorded levels. He also discussed the booming sales in large society lotteries, which surpassed £1 billion. Despite this, Rhodes noted caution, saying that inflation-adjusted figures reveal a declining relative value of gambling revenues. As operators battle higher costs, Rhodes emphasised that inflation rarely aligns with staking behaviour.
- Conflict and ingrained positions: A recurring theme in Rhodes’s speech was the polarisation within industry debates. He criticised the “absolutism” that dominates discourse. Rhodes recognised delays in implementing reforms stemmed from entrenched positions amongst operators, advocacy groups and regulators. He urged stakeholders to move beyond conflict and deliver practical, evidence-based solutions.
- Combatting the black market: The UKGC’s ongoing efforts to disrupt illegal gambling took centre stage. Rhodes reiterated the importance of upstream interventions. These include covert test purchasing and targeting those suppliers who aid unlicensed operators. A prime example is the investigation into Evolution, one of the industry’s major suppliers. Rhodes used this to highlight the risks that operators who do not ensure compliance standards face.
- Operator responsibility in supply chains: Rhodes doubled down on the expectation that licensed operators conduct due diligence on their partners. He also asked the critical question of why any legitimate company would work with suppliers supporting illegal competitors. Rhodes stressed the consequences of licence revocation, encouraging the requirement for proactive risk management.
A UKGC year in review
In 2024, the UKGC proved itself as a force in gaming regulation. Focusing on enforcement and player protection, it caught headlines which attracted attention. These actions signalled the need for industry reform and underscored the growing demand for accountability and responsible practices within the sector.
- Major regulatory actions: During 2024, the UKGC committed to maintaining integrity in the gambling sector by targeting high-profile cases. Many substantial fines were issued to the operators who failed to meet compliance standards. The UKGC mainly targeted areas like anti-money laundering and responsible gambling. Licence revocations also made headlines. The Commission adopted a zero-tolerance policy against companies associated with illegal activities.
- White Paper implementation: The long-awaited 2023 white paper continued influencing the industry. Some celebrate it as a vital reformative step, despite implementation challenges. The White Paper proposed measures such as affordability checks and the statutory levy, but sparked a fierce debate among operators and consumer advocacy groups. Discussions, arguments and a change of government caused delays in rolling out specific reforms, leaving stakeholders divided over their feasibility and potential impact.
- Player protection initiatives: In 2025, player protection will be a top priority for the gambling industry. This is a continual effort by the UKGC, which has already implemented initiatives such as enhanced affordability checks to identify at-risk gamblers. This included expanding self-exclusion schemes like GamStop. As with any measures, these received mixed reactions, some positive and others worried about cost and practicalities.
- Tensions with operators: The UKGC’s straied relationship with industry stakeholders is undeniable. Operators criticised the growing regulatory burden, especially the expectation to police their supply chains for links to illegal gambling. The Evolution investigation brought this to the forefront as many questioned the practicality of such due diligence.
Rhodes said that while the illegal market is ever-present, the UKGC focuses on understanding its flow and why it continues attracting players. The Commission’s upstream disruption strategy is central to reducing the scale of operations, especially in football-related betting.
As the industry entered 2025, the UKGC’s actions in 2024 served as both a point of contention and a benchmark for those navigating a rapidly developing landscape.
Looking ahead to 2025
As 2025 begins, the UKGC must balance its regulatory priorities, ensuring compliance, safeguarding consumers, and adapting to the industry’s growing landscape. Andrew Rhodes explained a plan that focused on responsibility, new ideas, and acting before problems arise.
- Regulatory priorities for 2025: Rhodes stressed the continued fight against illegal gambling as a top priority. The Commission plans to increase its use of investigative tools. Covert test purchasing and supplier accountability are central to this strategy. Evidence-based regulation will also guide the UKGC’s approach. Rhodes said they intend to move away from isolated metrics and focus on broader data trends that inform meaningful policy decisions.
- Statutory levy and ombudsman introduction: These two landmark reforms loom on the horizon. The levy aims to fund responsible gambling initiatives, while the ombudsman will provide a mechanism for resolving consumer disputes. While both these reforms will undoubtedly enhance player protection, their rollout will also present logistical challenges for operators.
- Balancing industry growth and player protection: Rhodes admits that the balance between supporting industry growth and safeguarding consumers is delicate. With GGY at record levels, the Commission aims to support innovation but is keen for standards not to slip.
While Rhodes pointed out that political volatility remains possible in 2025, . Forceful regulation, heightened accountability, and a commitment to evidence-based decision-making are essential. The new year demands that the Commission take decisive action to shape a more sustainable future for the UK gambling industry.
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