Central to the warning from the UAE regulator is around the increased threats that players expose themselves to when they play with unlicensed operators. These include financial loss, becoming the victims of cheating or fraud, having personal data stolen or misused, increasing the risk of malware, phishing, or other cybersecurity threats, and being implicated in a regulatory or criminal investigation and the subsequent reputational damage.

Kevin Mullally, CEO of the GCGRA, commented: “The GCGRA is committed to ensuring a safe and legal gaming environment in the UAE.”  

He urged consumers to “Stay vigilant and informed, to protect yourself from the risks associated with illegal gaming. Your adherence to the law not only safeguards your personal and financial security but also upholds the integrity of our community. If you choose to play, do so only with licensed operators.

“These unlicensed businesses have not had their technology or games independently evaluated for fairness or security. They are not required to act responsibly or incorporate basic consumer protection. They are not subject to advertising regulations and lack any oversight of their finances, including having reserves for prize payouts and complying with anti-money laundering laws. 

“Consumers are strongly advised to avoid unlicensed operators to protect themselves from adverse consequences.  Similarly, advertisers, payment processors, and other service providers that support these businesses risk sanctions and potential consequences affecting their ability to operate in the UAE.”

The GCGRA has granted just a single lottery license to The Game, LLC, which operates as The UAE Lottery.

Additionally, the Federal Law by Decree establishing the GCGRA, permits certain preexisting lottery activities to continue. Within this framework, only Big Ticket and Dubai Duty Free – airport lotteries that have been operating for approximately 30 years – are authorised to continue operations under the supervision of the GCGRA. 

The warning comes at a pivotal phase regarding the future of the UAE’s gaming framework. The industry is awaiting clarity on what the framework will look like and who the key players in the market will be, as regulatory developments continue to unfold in 2025.

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The UKGC’s Chief Executive Andrew Rhodes emphasised that work is only going to accelerate in the coming year, as he addressed delegates at the third annual briefing for industry CEOs and senior leaders, which according to the regulatory boss was represented by over 85% of the UK’s market GGY in attendance. 

“Let’s be clear – this is a very different situation we find ourselves in,” Rhodes added.

“Any operator of any real size and scale now who does not have well-developed algorithms, policies, procedures, interactions and interventions in place is increasingly an outlier and this will become more obvious as the industry continues to make developments in this area,” Rhodes commented. 

Looking to bolster support for operators that are navigating changing headwinds, the UKGC worked closely with the Betting & Gaming Council (BGC) to launch a voluntary code of conduct addressing the frictions often seen in consumer protection. 

Incorporated in that code was the Licence Conditions and Codes of Practice (LCCP) guidance, with the latest 3.4.3 iteration of it still being adapted to by operators. 

As a result of the latest set of regulatory guidance, consumer protection assessment outcomes have improved throughout 2024. According to Rhodes, only 42% of those assessments came back with ‘Good/Satisfactory’ results between April and June this year. 

Data from July to September however has brought that number up to 75%, with just 25% constituting significant failings – with the general outlook being that this will soon improve further.

The UKGC’s shift in assessment approach now includes a deeper analysis divided by sectors, sub-sectors and operator tiers, which will result in a change of the proportion of operators with positive outcomes. This approach will provide a clearer picture of the gambling landscape in the UK and make it easier to identify the “outliers” in compliance. 

Another element that the UKGC has committed to improving is simplifying “complicated issues” deriving from the numerous mergers and acquisitions, which then – despite not deliberate – often lead to marketing mishaps caused by a complicated tech stack where advertisements reach even those who are considered vulnerable. 

Referring to the first meeting of its kind in 2022, Rhodes added: “I said then… [that] we would enter a much more complicated phase of regulation, where we would instead be dealing with more nuanced and more complicated issues, with less obvious solutions. This is where I think we are now.”

Elevated action to tackle the black market 

Rhodes also utilised his platform to underline the need for increased alignment and commercial due diligence to disrupt the black market.

The Commission is at the heart of international efforts in combating illegal gambling activities as “Since the start of April this year, the team has issued over 770 cease-and-desist and disruption notices, including 262 cease-and-desist notices to operators and 205 to advertisers.” 

Rhodes praised a “strong start in its approach” but underpinned that enforcement requires greater market insights to support ongoing research into understanding the true scale of illegal gambling, targeting the UK and other regulated markets.

Commercial transparency is highlighted as a key mechanism to protect regulated markets. Rhodes called on licensed operators to conduct due diligence to ensure suppliers are not supporting illegal activity. The Commission will be strengthened by enforcement efforts aimed at enhancing trust through better compliance, transparency, and communication.

“I said to you last year that I wanted to encourage you to use your commercial influence with any partner or supplier to ensure they were taking all the relevant steps to verify they were not supporting illegal activity in Great Britain. Today, I am going one step further and strongly suggest you all undertake due diligence to ensure none of your suppliers are directly or indirectly engaged in supporting unlicensed activity in this market.”

The Commission’s strategy to combat illegal gambling focuses on causing as much upstream disruption as possible. This includes targeting internet service providers (ISPs), payment providers, search engines, software suppliers, and more.

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In laying out its new strategy, the UKGC underlined the major impact that the unlicensed market has on society.  

Chief Executive Andrew Rhodes, who is spearheading the proposals, detailed his awareness of concerns around new regulations being introduced risking the displacement of some consumers and leading to the growth of the black market.. Rhodes asserted that the growth of any black market operator would be an unintended event that the sector must avoid. 

Pinpointing some of the key methods the body has taken when it comes to mitigating black market operators, it highlighted the positive impact of ‘URLs being removed from search results, choking off payments and stopping games and products being accessible on illegal sites’.

One of the most threatened demographics when it comes to being targeted by unlicensed operators is those who have engaged with self-exclusion schemes, the UKGC warned. Accordingly,  the UKGC strives to elevate the resources it uses to eradicate unlicensed operators. 

Data analytics is one of the other key tools the UKGC is tapping into in order to ensure that the black market is mitigated. Utilising data enables the UKGC to effectively target the most impactful areas when it comes to unlicensed operators.

The regulator described data analytics as being ‘at the heart of our corporate strategy’, as it publishes its new methodology paper and looks to elevate the strategy in tackling the black market. 

Furthermore, the regulator also outlined that it is increasing its focus on affiliates that promote unlicensed operators, through honing in on key search words. 

Additional steps include increasing engagement with law enforcement agencies, such as the Police Intellectual Property Crime Unit, and strengthening ties with payment providers to disrupt illegal transactions.

Rhodes reiterated the importance of collaboration and data-driven action. “We are committed to making it difficult to provide illegal gambling at scale to consumers in Great Britain,” he said. “The partnerships we’ve built with international regulators, technology partners, and search engines are already delivering results, and we’re determined to keep up this momentum.”

“By using data analytics to improve our enforcement efforts, we’re not just reacting to the problem, but proactively targeting illegal operators. The publication of our methodology paper is just the first step in sharing this work with stakeholders and the public. As we continue to refine our approach, we will use this data to provide deeper insights into the scale and dynamics of the illegal market.

The data also revealed that ‘some unlicensed sites do not allow people to access them from IP addresses based in Great Britain. Consumers can bypass this by using a Virtual Private Network (VPN) to mask the location they are accessing the site from. The model does not capture any traffic to unlicensed sites from GB consumers using a VPN.’

The first iteration of the model uses GGY data for online slots as it underlines that a significant proportion of unlicensed gambling activity is slots. 

The UKGC also emphasised that this is just the start of the work it is doing as it looks ahead to the methodology being published in Spring 2025. 

It will identify the impact of gambling slots streaming sites, such as Twitch and Kick, and crypto trading platforms are also locations where gambling sites without GB licences may be promoted, will be analysed. As well as encrypted messaging platforms such as Telegram and WhatsApp.

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Compiled by professional consulting firm Alvarez and Marsal, BGC’s best practices guide compares regulatory approaches across each market around the world, offering a single body of evidence to critically analyse each and every strategy. 

Grainne Hurst, BGC CEO, explained: “For the first time, the BGC has brought together the lessons, both positive and negative, which have been learned by operators and regulators around the world when it comes to the online gaming sector.”

“This sector will no doubt continue to grow internationally, offering huge potential benefits to existing markets and those which are currently developing.

“Through effective regulation of this new growth sector, governments can achieve their core priorities of raising tax, boosting growth and jobs, while delivering high standards for player protection.”

Key objectives for regulators outlined in the guide include: 

• High channelisation: Ensuring that as much gaming as possible takes place in the regulated market
• Consumer Protection: Including by protecting young people and the vulnerable through robust safer gambling measures.
• Preserving Consumer Choice: By maintaining competition.
• Keeping Gambling Crime Free: Including by ensuring sporting integrity.
• Raising Tax Revenue: Ensuring operators invest in the markets they operate in.

Described as a “vital new resource” for both operators and policymakers, these core objectives are laid out directly for policymakers and the different approaches jurisdictions take to achieve them.

“In the UK, we have seen that firsthand, where balanced regulations have created a sector which raises billions in tax and investment in the economy, while supporting tens of thousands of jobs,” Hurst continued.

“But the risk posed by the wrong regulatory balance can undermine that good work, and give a foothold to the growing unsafe, illegal gambling black market, which is an ever-present threat in the UK.

“We are proud that BGC members are now a genuine global success story and a Great British export – that is the prize when the right regulatory foundations deliver sustainable success.

“If you are a policymaker navigating this new growth sector, or an operator seeking to broaden your international footprint, then this guide is for you.”

The guide will also hope to prevent players from turning to black market gambling. A recent BGC study in the UK showed that over 1.5 million players spend a total of £4.3bn on illicit gambling services each year. 

Pierre Tournier, BGC International Director, described the online gaming market as a “complex landscape” involving a huge range of potential regulatory choices and outcomes.

“But for too long there has been a crucial evidence gap when those choices are considered by policymakers,” he explained. “Our ambition for this new guide is that it finally offers a solution to that problem.

“Drawing on the lessons from around the world, operators and policymakers, can take a global view of the pitfalls and benefits of different approaches, and make better policy decisions as a result.”

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Increased clarification is needed from the Czech government, according to the Institute for the Regulation of Gambling (IPRH), as it emphasised that there are major discrepancies in the data published by the government.

It comes after the latest figures from the CELNI SPRAVA, the General Directorate of Customs, which monitors Czech gambling activities – the IPRH challenged these numbers and specifically claims that illegal gambling accounts for just 5% of total wagering volume, reported to be CZK 54bn (€2.1bn) in 2022.

The IPRH specifically was sceptical at the process that saw Czech Customs come to such a low figure amidst the consistent closing of illegal venues. 

It was also revealed that the number of legal Czech gambling establishments has decreased to 707 as of last year.

IPRH’s independent assessment suggests that Czech gambling has at least 30% exposure to illegal gambling activities, a figure likely increasing as consumers migrate to online platforms.

Jan Řehola, Founder and Director of IPRH, notes that illegal land-based gambling activities have cost the Czech state up to CZK 2.1bn (€85m) annually.

The IPRH also highlights discrepancies in how the Customs Agency gathers data on the percentage of exposure to illegal online gambling, as customs officials focus only on sites in the Czech language.

In 2017, the Czech government introduced a revised gambling regime that imposed a new tax structure: a 23% tax on gross gaming revenue for sports betting and lotteries, and a 35% tax for slots and casino games, in addition to the standard corporate tax rate of 19%.

Efforts to block illegal online gambling sites remain challenging, as operators often bypass these measures by using mirror sites. These mirror sites, which copy the original sites but with different domain addresses, enable illegal gambling activities to continue despite enforcement efforts.

IPRH urges the government to collaborate on reforms, with its members supporting the launch of a new national self-exclusion register to protect vulnerable individuals from gambling addiction. The trade body highlights the success of this collaborative scheme, which has seen 202,000 Czech citizens register for self-exclusion from gambling since its launch in 2017.

The post IPRH questions Czech Customs’ evaluation of the black market  appeared first on CasinoBeats.

As the President of the National Council of Legislators from Gaming States (NCLGS), Fluharty will be delivering a keynote at the event as he emphasises the importance of streamlining and optimising the process when it comes to legislation. 

Highlighting what he believes lawmakers should focus on when it comes to igaming expansion, he pinpointed the importance of ‘cannibalising the black market’.

He said: “All of those states are currently offering black market igaming, they’re just not seeing any revenue from it. Regarding cannibalisation, current igaming states didn’t have the cannibalisation talking point when considering legislation. Brick-and-mortar casinos continue to run strong in those states. 

“Pennsylvania has opened four new casinos since passing igaming. At the end of the day, lawmakers have the opportunity to raise new revenue without raising taxes, shrink the black market and provide consumer protections which currently do not exist. Those are sound policy objectives, not just political talking points.”

He also revealed that since announcing the iGaming Committee, the group has ‘received incredible feedback’. 

He continued: “We have partnered with the UK Gaming Commission, as they have the longest tenure in offering an igaming product and bring years of experience to the table. We will have consumer protection advocates, legislators and those operating in the industry at the table as well. 

“Certainly, most recent legislative sessions will play a role as they offer the most recent evidence of roadblocks to passage. While each state is unique, I believe we can produce a framework that will serve as a tool and catalyst to produce sound policy in states going forward, which is a goal for NCLGS and our members.”

Fluharty concluded by outlining that “collaboration is the most important issue that deserves more attention when considering legislation. When we were passing igaming (and sports betting) in West Virginia, we reached out to David Rebuck and New Jersey”. 

He continued: “We worked with our regulators, West Virginia Lottery, to get legislation across the finish line. Without that collaboration, it doesn’t happen. 

“Lawmakers need to realise that regulators are partners in this process, not adversaries. They should be included in the beginning. Doing so will show the public and your colleagues that you want an operable finished product, which also incentivizes lawmakers to support said legislation.”

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After the UK government announced £2 online slot stake limits for 18-24 year olds, and £5 for over 25s, EPIC Global Solutions CEO and Founder Paul Buck referred to the measures as a “sticking plaster” that could “cause more harm” than good. 

Taking to LinkedIn to respond to last Friday’s announcement, Buck responded by stating there was “no huge surprise” in the Department of Culture, Media and Sports’ decision. 

He stated: “No huge surprise in what was announced today by DCMS, but it does feel like a sticking plaster that hasn’t been particularly well thought through. Probably the first of quite a few as the White Paper is implemented.”

Buck pointed to three issues stemming from the new online slot stake limit measures, suggesting that stringent limits on what customers can play with may invoke other aspects of problem gambling, such as longer playing times. 

“Gambling is not only a financial issue,” Buck’s post read, “it is every bit as much about time and cognition, and how much you use of each.

“The £2 slot limit has merit for under 25s, and a £5 slot limit will reduce some harm, but not nearly as much as some people are spouting/hoping. 

“All it will do in some cases is make people gamble for longer. Average session length is currently 17 minutes, that will probably grow now and that in itself will psychologically engage people longer, which affects addiction.”

Buck also referred to the constant threat of the black market, suggesting that illicit companies will be “rubbing their hands at this as an opportunity to engage with punters who don’t like these restrictions.”

He said: “The unregulated black market is real: this has been overplayed in some cases and massively underplayed in others. EPIC Global Solutions have 24 team members who have had serious gambling problems and is the leading employer of people with lived experience of gambling harms globally. 

“Although we have over 150 years of recovery amongst us, we still get hundreds of black market operator emails every month. 

“They aren’t interested in £2 or £5 slot limits, in fact they’re rubbing their hands at this as an opportunity to engage with punters who don’t like these restrictions. [The measures are] a sticking plaster that could cause more harm by driving people to the unregulated black market operators who will undoubtedly target players in the UK more now.”

Concluding his statement, Buck suggested that US gambling companies and, in particular, regulators must take note of “mistakes made in Europe” through “vice-like regulations” that are “ill thought-through” and likely “difficult to reverse”.

Buck Continued: “The USA gambling industry take note, you have an opportunity to have the biggest and safest gambling industry in the world. But that opportunity is now, not in 12, 24 or 36 months. Mistakes were made in Europe and now regulators and governments are applying vice-like regulations, which may well prove to be ill thought through, but will be difficult to reverse. 

“Make the same mistakes, but on a much larger scale, and these same regulations will follow as public, political and media sentiment turns away from you. Time to be proactive now.

“Time will tell how effective, or ineffective, today’s announcement turns out to be. Hopefully metrics are in place to measure how much harm is reduced or indeed increases. 

“For now, is this the first of a number of missed opportunities in the coming months and years that could do more harm than good. There is already some great work going on by some operators, I hope this doesn’t disincentive them to do more.”

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It detailed that play on illegal casinos equals around €748m and €1.5bn in GGR, with as many as three million French players engaging with black market sites. 

The study, which was commissioned by the Autorité Nationale des Jeux (ANJ), detailed that the illegal market represents between five and 10 per cent of the overall legal gambling market in France.

The study, initially scheduled for this summer, was carried out by PwC between January and March this year and identified 510 sites and 14 mobile apps as offering online casino products in France, with 21 sites understood to be capturing around 60 per cent of the traffic.

The ANJ pinpointed the key products that are being engaged with when it comes to casino games, with roulette and craps accounting for just under half of all stakes, and online slot machines recording 54 per cent of player wagers.

Discussions over online casinos and their lack of regulatory framework and legislation have taken centre stage in France in recent months, with the French government reportedly edging closer to an exclusive licence being granted to the FDJ. 

French industry sources revealed a potential agreement between the FDJ and the country’s authorities that would adjust the country’s framework and elevate the chances of it taking place. 

It is, however, a step that would likely lead to backlash from the PMU, as well as other operators seeking to expand their presence in France.

The European Gaming and Betting Association (EGBA) has also emphasised its fears over the finding of the study and what this could mean for the black market. 

Although France is one of Europe’s significant gambling markets, it is one of just two EU countries which has a ban on online casino games, creating a black market with all its inherent risks, and lack ofprotections.

Maarten Haijer, Secretary General, EGBA, stated: “The scale of France’s online black market is alarming, and we believe it is one of the EU’s largest online gambling black markets, alongside Germany and Italy. The country’s prohibition of online casino is clearly a big part of the problem. 

“Given the popularity of online casino, and the need to protect consumers from the risks of the black market, it is imperative that the French authorities urgently reassess their current ban on online casino games. The ban is counterproductive and fails consumers. By regulating online casino games through a multi-licensing model, France would better protect its consumers, regain more control over its online gambling market, and secure vital tax revenues.

“The best way to tackle a black market is to establish a competitive regulated market alternative. The time to act is now.” 

CasinoBeats Breakdown: The challenge of eradicating the black market threat is a vital one in France, however, as the regulatory framework in the country becomes increasingly stringent and competition amongst casinos is diluted, the threat only grows. Regulators should take note of the latest data from the ANJ and ensure that future frameworks are most adequate to combating the unlicensed operators.

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The body emphasised that more needs to be done to increase protections around consumers being targeted by the black market. It comes off the back of a study undertaken by economist Günther Schnabl of the University of Leipzig, evaluating the effectiveness of laws and protections of Germany’s Interstate Market (GlüNeuRStv).

It detailed that “efforts of the federal states to steer players towards licensed offers, around half of German online gambling continues to take place in the illegal market”.

“The youth and player protection measures of legal providers, such as limits, player bans and offers of help, are therefore often ineffective,” the DOCV’s statement continued.

The University of Leipzig’s study used data from Nielsen Media, Germany’s market research panel, recording online activities of approximately 25,000 consumers in Germany, recording visits and engagements with over 700 gambling domains.

Monitoring developments, as of March 2023, only about half (50.7%) of German gamblers engaged with licensed providers. The report detailed a significant shift towards unlicensed EU (28.9%) and offshore (19.9%) operators observed since January 2019.

The report concluded: “The key goal of the federal states with the new State Treaty on Gambling, which came into force in July 2021, was to channel players into the legal market, where they play in a protected, state-monitored area.”

At the heart of recommendations are “accelerating the GGL’s licensing processes, increasing the legal market’s competitiveness, and strictly enforcing the advertising ban on illegal providers while maintaining advertising for licensed operators”.

It further advises enhancing cooperation between the gambling industry and federal gambling authority GGL with the participation of wider stakeholders.

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In the finale of a three part mini-series delving into the current state of the LatAm market, Starostenkov is joined by Andrea Rossi, Betsson Group’s commercial director Latin America and Mario Benito, CCO of R. Franco Digital, looking into the evolution of the online sector.

Starostenkov kicked off the discussion by highlighting his expectations to see the mobile predominance continue. As for game preference, he pinpointed the main drivers as sports betting and lotteries, “but we are sure that online casino and poker will grow.”

He added: “Likely, more global brands will try to set foot in Latin America: operators, vendors and service providers, through both expansion and local partnership deals.”

Rossi added to this by highlighting that, to him, LatAm has always been a market with a strong penetration of land-based and, in the past 18 months, the sector has seen behaviour shifting more to online. “Now that things are returning to normal, I expect retail to get back to where it was before,” he noted.

He continued to explain that the experience between online and retail is different and those who were more used to the retail environment will probably go back to that. 

“The customer experience is different and despite the tremendous advancements in technology, UX and UI, and other innovations, I still think that the retail experience is still not fully replicable online. It’s simply a different experience.”

However, he also added that those customers who experienced online and understood how to engage with online gaming might stay online too.  

“As online operators, we have the ability and the responsibility to provide customers with a safer gaming experience. We have developed a multitude of tools and features to control gaming behaviour. We provide self-exclusion tools, spending budget tools, session controls, and much more so in my opinion, the online space offers a more comprehensive suite of tools for customers to play responsibly.”

He continued by highlighting that, at Betsson Group, the focus is kept towards executing the company’s strategy in LatAm and, in the past months, it has opened a new LatAm Hub in Bogota, Colombia, from where it will cover regional customer service, operations, finance, HR, and legal functions.  

Moreover, the company also acquired Inkabet in Peru, “which is a strategic move from our end to cement our leadership in the market,” he explained, “and we’re not finished – we’re still very much interested in other opportunities in the region. 

“We believe that the right thing to do is to look for local partners. We know that we have robust technology and solid online gaming know-how, but we need local partners with local expertise who can help us understand the local landscape and customer behaviour better and thus allow us to provide a much more localised offering. 

“We are always on the lookout for more opportunities, and we’re thrilled at the very fast pace that the region is growing.”

Benito concluded the discussion by emphasising that “the growth of a market is always a positive sign and much more so when it occurs in the manner of LatAm”.

He explained that, as in any growth market, multiple opportunities will arise that the entire sector will have to know how to take advantage of. “One of the most important factors here is having the knowledge on the ground of what operators and players want.”

The COO concluded: “This will inevitably vary from country to country in a region as large and diverse as LatAm, but one constant remains: players want high-quality products that offer an immersive, enjoyable experience. 

“We are part of the entertainment business and are competing for online attention with the likes of the major streaming services and must continue to give players compelling reasons to play.”

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