Gambling Commission Speaks of 300% Increase in Criminal Cases

Gambling Commission CEO Andrew Rhodes has spoken about a 300% year-on-year increase in criminal cases the British regulator is taking, with the black market continuing to be one of the main issues it faces.

Rhodes spoke at the International Association of Gaming Regulators conference, where he touched upon a number of trends the Commission is attempting to keep on top of.

When speaking about the increase in criminal activity in the gambling space in Great Britain, Rhodes said:

“In the last two years between our annual reports, one of the things that's really, really stood out to me is year on year we saw a 300% increase in the number of criminal cases we were taking as a regulator. I'd be surprised if that's not a pattern that is starting to emerge around the world. So there has been a tremendous amount going on for us during that period.”

Rhodes also said the Commission is approaching 200,000 URLs it has reported to search engines, which has led to close to 100,000 being removed. The Commission is tracking more than 1,000 illegal operators it is actively trying to shut down.

Black market warnings

Rhodes’ comments about the black market in the UK come at a pertinent time, with some industry figures warning about the potential growth of the black market as a result of a potential large tax increase for operators. On November 26, Chancellor Rachel Reeves is expected to announce a new remote betting and gaming duty (RBGD) to replace the current system of three separate remote betting taxes.

The prospect of the RBGD, which is expected to be set at around 21% to 25% of gross profit despite more than 100 Labour MPs calling for a much higher rate of 50%, has led to numerous reports about leading UK operators considering shop closures as a result.

Stella David, CEO of Entain Group, recently said on the operator’s Q3 earnings call: “If the objective is to raise more taxes, then the best opportunity is to reduce the amount of black market that exists in the UK today. Over 500 sites exist. They look very professional and they promise great rates, no prior protections, no guarantee you get paid out.”

Rhodes appeared to take a neutral stance on the prospect of the RBGD, but said “sometimes campaigners will apply a false attribution to the effects of different things.”

Crypto licensing off the table for now

Aside from the black market, Rhodes warned about the growth of cryptocurrency. Rhodes said the Commission is not looking to license crypto operators, and expressed concern about how crypto gambling is appealing to younger players, and that the issue is creeping up on the Commission faster than it thought.

Rhodes said: “We know that the demographics under 40 are starting to use cryptocurrencies a lot more. What I personally felt maybe a year or two ago was perhaps a problem that was five years away. I think that is now maybe 12 months, 24 months away as we are seeing this grow.

“It also brings some interesting and difficult questions for us around how would you even try and work with cryptocurrencies given all the problems we know we have around traceability of funds, AML risks, terrorist financing. Do you start to look at cryptocurrencies as demonstrating a source of wealth, or can they be a source of funds?”

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