Key Moments:
- Andrew Rhodes has stated that growing use of cryptocurrencies among younger people is creating increased pressure around crypto gambling regulation.
- Rhodes indicated that government decision-making is needed on licensing, noting that a once-distant challenge is now expected within 18 to 24 months.
- The Gambling Commission has recently suspended nine licenses and has warned operators to expect more enforcement with no advance warnings.
Crypto Gambling and Demographic Change
Andrew Rhodes, CEO of the British Gambling Commission, has stated during his annual CEO Briefing that governments will soon need to make decisions on whether to regulate crypto gambling. He highlighted cryptocurrencies as one of the fastest-moving changes within the gambling landscape. Rhodes pointed to increasing use of cryptocurrencies among younger demographics, warning that this trend will cause pressure in the market as these consumers find their currency options unaccepted by regulated operators.
Rhodes observed, “What I thought was a five year away problem, perhaps a year or two ago, I think is now 18 months to two years challenge.” He emphasized that any decision toward licensing crypto gambling must be made by the government, not the regulator alone, given the permanent implications and wider questions it raises, including its status as a source of wealth and the associated risks and compliance requirements.
He added, “The reality is, and this growth in those demographics means, I don’t think governments can ignore that pattern. And it’s good to see Financial Conduct Authority (FCA) are doing a lot of work in looking at how we might create a regime for this.”
Society Lotteries, Prize Draws, and Market Mergers
Rhodes also commented on the expansion of society lotteries, noting that sales have now surpassed one billion pounds. He flagged an overlap in demographics between these lotteries and unregulated prize draws, observing a notable shift in consumer spending patterns. Rhodes said, “In terms of participation, last year prize draws now sit just behind betting as a participation activity. So we’ve seen these things move quite significantly in recent times.”
He went on to highlight a transformation in market ownership, as there is greater consolidation between lotteries and other traditional gambling sectors. Mergers and acquisitions have brought traditional gambling and lottery businesses together into larger commercial groups. Rhodes referenced recent consolidations, stating, “We’ve seen Flutter and Sisal, the lottery provider in Italy and elsewhere, we’ve seen Bally’s and Intralot, FDJ who run the lottery in France and actively involved in other areas acquiring Kindred group and Allwyn have made acquisitions in the wider gambling industry as well and I’m sure there are others that I’ve not mentioned.” He suggested that such integration could create new challenges as products and markets overlap further.
License Suspensions and Regulatory Actions
Rhodes made it clear that regulatory enforcement is escalating. He warned operators that the Gambling Commission would not issue advance warnings before taking action, stating, “There will be no warnings… There are no excuses. We will not accept any excuses. And you should as a sector, expect to see more enforcement action in the coming weeks and months. We’ve been working on this area very actively and we don’t intend to stop.”
He noted that the Commission has carried out nine license suspensions in recent weeks. Infractions have included issues with software provision and self-exclusion rule violations. Notable recent suspensions include VGC Leeds Limited, which operates Victoria Gate Casino in Leeds city center, due to anti-money laundering requirements, as well as the gaming software license of Spribe OÜ over B2B activities not covered by its license.
Illegal Gambling Findings
Rhodes addressed the Commission’s reports concerning illegal gambling in Britain, reaffirming that the regulator has not found evidence of an increase in such activities.
| Company | Action | Reason |
|---|---|---|
| VGC Leeds Limited | License suspension | Anti-money laundering requirements |
| Spribe OÜ | Software license suspension | B2B activity outside license scope |
- Author
Daniel Williams
