The UK has had a complicated relationship with
online gaming over the years. In the rush to keep up with the rapid popularity
of e-gaming, the UK, the US and many European countries were accused of
over-regulating or an inherent misunderstanding of the market.
Evolving
regulations
In fact, the UK only began to regulate online gaming in 2005, after the
introduction of the Gambling Act, which placed the Gambling Commission in
charge of regulating the sophisticated and ever-growing online gaming market.
The following year, the US' Unlawful Internet Gambling Enforcement Act of 2006
turned out to be a game changer. That Act has been in a near-constant state of
amendments and oppositions ever since, underlining the difficulty of regulating
the dynamic online gaming industry.
More recently, the UK's oft-delayed Gambling Act 2014 has introduced a slew of
new measures designed to further safeguard the interests of players online, but
it has come under stiff opposition from some channels [1].
So what can we expect in the future?
A new
digital marketplace
No one can accurately predict the future of online gaming and market
regulation. The rise of Bitcoin and other digital currencies suggests that new
payment systems will need to be catered to sooner rather than later. Cozy Games
has become one of the first sites to accept digital
currencies [2]through a
partnership with GoCoin.
In the meantime, market leaders such as Playtech have been working with the
regulators to bring new (fully licensed) products to market as quickly as
possible, and keep them there for the long term. One of Playtech's upcoming
launches includes Titanbet Casino [3]helping players understand its
repercussions [4], the main
one being that UK players can no longer play on the PokerStars French site.
For the gaming companies, compliance with regulation tends to be a lengthy
process, but it cannot be ignored. Playtech famously saw a 40% dip
in its share price [5] on the day
that the Unlawful Internet Gambling Enforcement Act of 2006 came into force,
although it has since recouped that loss and then some.
Clearly, it is possible to retain customers and expand your online gaming
business while working within regulatory constraints. Online operators just
need to be able to think long term and be open to change.