UKGC Announces a Bountiful First Decade of iGaming Regulation, Sets Sights on Future GrowthPublished May 12, 2019 by Lee R
The UKGC is proactively incorporating technology into legislation reform to fuel more robust GGY growth.
The first ten years of iGaming's key regulation jurisdiction has seen key statistic gross gambling yield GGY balloon.
In the first ten years of UKGC iGaming regulation, 2008's £8.3bn gross gambling yield (GGY) has blossomed into an ample £14.4bn GGY.
The UKGC has committed to keeping those figures on the rise with some proactive adaptation--in the form of a revisitation of some decades-old regulation to better reflect current technology with the goal of making the industry safer and fairer for all users.
Informed New Rules
After an open consultation with industry stakeholders at the end of 2018, the UKGC ultimately announced the new rules in early February.
Key Safety Regulation
These rules include safety regulations such as requirements for operators to verify customer age before funds can be deposited into an account or gamble, an application which stretches to free to play bets as well, with the guidelines set to take effect on May 7th.
Identity Check Goals
The UKGC further clarifies the primary priorities of the new standards as prevention of underage gambling; improvement and regulation of age and identity checks; and improvement of overall customer experience.
API Automation in Legislation
New technologies will streamline the clunky regulations contained in the Licence Conditions and Codes of Practice (LCCP) with application programming interfaces (APIs) automatically verifying age and identity within minutes.
Operators stand to increase customer retention from real-time identity checks and improved customer experience, capabilities that did not exist a decade ago when the UKGC initialized iGaming regulation.
Nonetheless, there may be an adjustment period. Operators should be prepared for some initial friction, increased operational costs, and initial customer drop-offs.
Initial Adaptation Obstacles
Specific initial friction may initially include customer turn-off to prevention of play until identity checks are complete. Nonetheless, in an arena where customers have historically often been prevented from claiming large winnings due to errors in identity verification, experts remain confident customers will rapidly learn to appreciate the value of an enhanced identification process.
Despite growing pains, the commitment the UKGC is showing to a sustainable and enhanced regulation model has to be inspiring for all industry stakeholders in iGaming's most significant jurisdiction, which appears to have positioned itself to keep growing for years to come.