The UK is expected to see new gambling regulations put in place that could spark betting companies to move across to the flourishing US market.
As one of the largest gambling industries globally, the UK has been observing a surge in problem gambling. The situation has given rise to bring some legislative changes, which have been discussed in the House of Commons and will tighten the current UK gambling laws.
Top leaders in the country support the move, which could see a shift in gambling companies and operators turning to the US for business.
Gambling Revenue Continues to Fluctuate
For the last couple of months, global analysts have focused on the US gambling industry to provide insight into how casinos could keep afloat amid the COVID-19 outbreak. Though the situation has not reverted to the pre-pandemic level, US gaming revenues have continuously improved since the casinos have reopened.
The UK gambling industry was also affected by the pandemic-led crisis and each month has witnessed fluctuating revenues. In July, online gambling revenues dropped in the UK, while land-based gambling earnings showed some improvement. In terms of online gambling, the UK saw an upwards trend in the first half of this year with 2.7% of new gamblers decided to place online bets during the country’s lockdown.
The lawmakers have been discussing gambling-related issues in the country over the years. Sometime back, a broad range of new restrictions were placed on UK gaming operators. Now, the British government is reportedly preparing to enforce other regulations on the industry.
Boris Johnson To Announce New UK Gambling Regulations
The new gambling regulations that the government has been contemplating even prior to the pandemic are likely to be introduced soon. These regulations will reportedly hurt the country’s gambling operators, and many have begun trying to break into the US market in anticipation of the changes to UK laws.
The UK gambling industry has been under pressure in recent months, and some analysts feel there are not sufficient regulations enforced to protect real problem gamblers. It appears UK Prime Minister, Boris Johnson, and his team agree as well.
The Guardian recently reported that new UK gambling regulations are set to be announced within a few weeks. According to sources, these regulations will crack down on the kinds of advertising the gaming operators can offer.
While expressing her scepticism towards this move, Lady Barran, a minister for the DCMS, says, “I cannot be specific on the scope of the review, but the evidence is not clear about the connection between advertising and problem gambling.”
On the other hand, Peers for Gambling Reform is a group that spearheaded this new regulatory reform. The group’s leader, Lord Foster of Bath, says that introducing intense UK gambling regulations was long overdue. He stated, “Given that we have a third of a million problem gambler, including 55,000 children and one related suicide daily, the action is urgently required.”
Foster further added, “Internet gambling companies have cashed in on the COVID-19, making more profit and putting more lives at risk.” He said that the purpose for which this group was formed was to ensure “prompt action is taken by the UK government to reform our completely outdated regulation.”
The UK Prime Minister supports this claim to bring new regulations which are expected to be revealed within a few weeks.
UK Gambling Entities Now See Hope in the US Market
Until now, the UK was one of the largest gambling markets in the world as the country’s lenient regulations helped it flourish. However, things are set to change.
In 2018, the US Supreme Court decided to annul PASPA, and the ruling effectively enabled each state in the US to legalize sports betting. Since this, as many as 24 states have officially passed bills to regulate sports betting. Amid this shifting trend, the US is continuously proving to be one of the most lucrative nations for gambling operators.
Some of the UK’s top sports betting entities have already stepped into the US market, including William Hill. This trend seems to be contagious with many more operators are expected to follow suit in the coming months. The new gambling regulations in the UK are also likely to hasten the move to the emerging US gambling market.