Poll results: New UK framework will stir black market
Respondents to this week's eGR poll believe new UK model will see customers migrate to unlicensed operators
The size of the UK’s black market will increase as a consequence of the changes to the country’s remote betting tax and regulatory model, according to the results of this week’s eGaming Review poll.
With the Gambling Bill expected to be passed into law next week, UK-facing operators and software suppliers will be required to obtain a licence from the UK Gambling Commission this summer and also pay a 15% levy on UK-derived profits from 1 December.
And more than three quarters (79%) of respondents said they expected the number of rogue operators to increase by varying amounts once these changes come into force.
Of this group, just over half said the increase would be significant and would mirror what was witnessed following a similar ring-fencing in Spain and Italy, with 50% the latter’s gaming market estimated to be in the hands of black market operators.
The Gibraltar Betting and Gaming Association (GBGA) is also of the opinion that the new regulatory model will result in a swelling of the UK black market and is to call for a judicial review in an attempt to reverse the plans.
Brian Mattingley, chief executive of Gibraltar-licensed 888, told eGR the operator was working with the GBGA and its fellow members in order to prevent the implementation of the new regime, although conceded it would be a tough task.
Meanwhile, 37% of total respondents said that while they expected the number of unlicensed operators to grow, the increase may be fairly negligible.
One thing in the UK’s favour is its offer of a complete product portfolio. Many of the problems faced by Spain, for instance, has stemmed from its lack of slots, leaving some customers no alternative but to seek the product elsewhere.
A similar situation has occurred in Italy where limits on poker and, until recently, the restricted scope of sports betting markets saw unlicensed operators profit from its more attractive offer.
And the remaining 21% agreed that the UK’s full product suite would create an environment whereby customers wouldn’t need to search for unlicensed sites and would therefore remain in a regulated market.