Gaming: A UK-Wide Overview

Introduction

It has been a transitional and transformative year for the gambling industry in Great Britain as we move through the implementation phase following the turbulence and turmoil of the Gambling Act Review. The government’s 2023 White Paper – “High Stakes: gambling reform for the digital age” (“White Paper”) set out more than 60 reform proposals at the heart of which is an aspiration to achieve the right balance between consumer freedoms and choice on the one hand, and protection from harm on the other. Many of the proposals are now becoming reality and bring much-needed certainty to the regulatory landscape, although the proposed reform surrounding tax harmonisation, the outcome of which is not known at the time of writing, seriously threatens to cast gloom over the sector from a commercial perspective.

Meanwhile, the Gambling Commission (“Commission”) is continuing to undertake regular enforcement action. Sanctions for customer interaction and anti-money laundering failures persist, though generally speaking the failures are less serious and egregious and the financial penalties are lower than in previous years as the industry raises its standards, and we have seen an accelerated drive to tackle the illegal market and an increased number of sports betting integrity investigations. These are trends we expect to continue over the next 12 months but, combined with better communication, are leading to an ever-improving and more balanced relationship between regulator and licensee, and allowing the Commission to focus its resources constructively on some of the more challenging issues impacting the regulator and industry alike.

The Post-White Paper Era

It must be remembered that the White Paper was broadly regarded as a fair and balanced outcome to the review, with something for all stakeholders, and certainly more favourable to industry than it might have been given some of the pessimistic predictions and anti-industry sentiment in the media. Although there has been a shift in the regulatory and licensing landscape following the implementation of measures, against this backdrop, the relative certainty created by the implementation seems to have been to the benefit of most stakeholders. Noteworthy changes include:

Liberalisation for the Land-Based Sector: Converted 1968 Act casino licensees were granted extended gaming machine entitlements (from 20 to up to 80 based on their meeting size requirements), and permitted to offer sports betting, when legislative changes took effect on 22 July 2025. The changes bring welcome and long-overdue modernisation to the land-based sector.

• Statutory Levy: The mandatory annual statutory levy came into force on 6 April 2025. The mandatory levy, which replaces the voluntary RET contribution, is collected by the Commission, based on revenue from licensed activity, and is calculated using regulatory returns data submitted by licensees. The rate ranges from 0.1% to 1.1% of revenue, with the highest rate applying to remote and gambling software licensees. Payments are due annually by 1 October.
• Financial Vulnerability Checks: Arguably the most controversial White Paper proposal, the introduction of financial vulnerability checks was a milestone for the industry. The requirement that remote licensees conduct a financial vulnerability check on customers with a net deposit threshold of GBP150 a month came into effect on 28 February 2025 after a graduated introduction before then. The check can be frictionless but must include whether the customer is subject to a bankruptcy order, a county court judgment, or an individual voluntary agreement (or similar), and proportionate action must be taken by the licensee based on the result.
• Online Stake Limits: Statutory instruments were introduced imposing a maximum stake limit for online slots of GBP5 (which came into effect on 9 April 2025), reduced to GBP2 for those aged 18-24 years old (which came into effect on 21 May 2025).
• Direct Marketing: A new social responsibility code provision came into force on 1 May 2025, requiring that licensees provide customers with options to opt into marketing on a per-product and per-channel basis.
• Online Game Design: New remote gambling and software technical standards (RTS) took effect on 17 January 2025. The updated RTS introduced new requirements in respect of online game design, including a minimum spin speed and the display of net spend and time information for casino games, the prohibition of features which may give the illusion of “false wins”, and a ban on offering the ability to play multiple games simultaneously. 

There are some important proposals that are still in the pipeline. The Commission continues its pilot to test the practicalities of using frictionless financial risk assessments to assess the risk of gambling harm for the highest-spending online customers and, somewhat surprisingly, there has been limited update on progress in relation to the voluntary creation of a Gambling Ombudsman, a cornerstone proposal of the White Paper.

Despite the positive progress made in the wake of the White Paper and relative certainty achieved, some challenges remain. The anti-gambling lobby continues to press for a further gambling review and seeks further restrictions on advertising and greater powers for licensing authorities when regulating premises in their area. Further, the debate around the harmonisation of gambling tax, triggered by the government’s consultation, has caused deep tension and led to fears that the proposed consolidation of taxes will effectively result in a significant tax increase for some sectors, in particular betting and online.

Enforcement Action

Whilst the Commission continues its enforcement action, there has been an overall raising of standards across the industry. There have been less egregious cases of non-compliance and lower financial penalties than in previous years, and the Commission’s focus has shifted onto more nuanced and challenging issues. Examples include ensuring licensees’ adherence with enhanced customer interaction obligations (including utilising technology to act in real time and not relying solely on fixed financial thresholds), the financial risk assessment pilot and the targeting of the illegal market. Serious failings, repeat offenders and unlicensed operators remain likely to face stronger Commission action.

Illegal Market

A further area of Commission focus is its drive to tackle the illegal and unlicensed market. There has been a particular focus on unlicensed B2C and B2B operators, but this is now extending to licensed B2B operators that supply to unlicensed partners. The Commission has increased its resources and is collaborating with other regulators globally to assist its efforts against the unlicensed market. Action that the Commission has taken includes issuing warning notices to operators, advising licensees to actively monitor their business relationships and conduct full due diligence on their suppliers/partners to ensure they are not supporting illegal market activity, issuing cease and desist notices to those potentially participating in illegal offerings, and referring URLs to search engines to have illegal gambling websites taken down. We expect to see the Commission continue its work in this area over the coming year. 

M&A Activity

M&A activity continues to be prevalent in the industry, particularly in the B2B sector. The global nature of transactions can prove challenging for both licensees and investors, who must manage regulatory and licensing requirements across multiple jurisdictions. However, the Commission has become more collaborative with licensees and is mindful of corporate and commercial deadlines when considering change of corporate control and/or licence variation applications, evidencing the strengthened relationship between licensees and their regulator.

Conclusion

There has been increasing stability in the gambling industry in Great Britain over the past 12 months. Each sector is acclimatising to the changes brought about by the White Paper and is adjusting to the new regulatory and licensing landscape. However, ongoing challenges from the anti-gambling lobby and the proposed tax harmonisation reforms may mean this stability is short-lived or overshadowed from a financial perspective. Over the next 12 months, we expect to see continued implementation of the proposed reforms, including critical clarity on the financial risk assessment pilot. There is no doubt that the Commission’s activity against the illegal market will continue to be a priority.