Just what does the future hold for the UK gambling industry? After a change in government there is uncertainty over how Labour will regulate the market. October has already seen DraftKings announce their departure from the UK market, will others follow?
Just as many UK gambling companies look to expand their business in other territories, there have been several overseas gambling businesses heading to the UK such as BetMGM and Betano.
It was on October 4 that the daily fantasy offering from DraftKings in the UK closed. The reason given for this decision was an attempt by the company to “optimize its business.” Achieving a good share of the market is a difficult task with a high level of competition being faced.
DraftKings will now focus on growing their business in other key markets. This will include the US sports betting market. They have enjoyed tremendous success in their home market both in fantasy sports and in recent years actual sports betting.
This year has seen a change of government in the UK. Labour have taken power and they do intend to reform the UK gambling industry. Just what they have in mind is not fully known. With that being so, it has left the market unsure of the future. More overseas companies may decide to leave if they believe stricter regulation is on its way in the UK.
Talk of reforming the UK gambling industry is nothing new. The previous Conservative government declared their intention to do so five years ago. Little has happened though but a White Paper was published last year that set out some measures.
These included stricter regulation for the online sector including tougher affordability checks. Much reduced maximum stake levels for slot games had been due to be introduced this autumn but has been delayed due to the changes in Downing Street. If they were to be introduced, they would hit the profits of online casinos so you can see why some may contemplate leaving the UK market.
Campaigners are also calling for a statutory levy to be imposed on gambling companies. There are also calls for tighter regulation of how gambling is advertised in the UK. The fear is that if stricter regulation is introduced, customers may desert licensed companies and instead gamble on the black market. Again, profits would be hit if this was to happen and this could see more overseas companies decide it’s time to leave the UK market.