UK regulator continues crackdown on non-compliance in the gaming sector
With technological advances leading to increasingly realistic and immersive experiences, it is unsurprising that gaming is becoming the most popular leisure experience among all ages. It’s also highly lucrative - the industry is now believed to generate more revenue per year than movies and music combined.
Gaming encompasses more than just FIFA, Fortnite and similar high-profile console games. It also includes online and mobile app-based games. The growth trend has tempted plenty of new businesses into the industry, particularly the thriving casino gaming niche. For every one familiar name, you will encounter four or five that you have never heard of. In such a crowded and fluid environment, it should come as no surprise that this sector is closely regulated and monitored.
The role of the Gambling Commission
The UK Gambling Commission employs around 300 staff to oversee both online and land-based businesses that are involved in gambling. These include activities such as casino games, sports betting, bingo and even lotteries. The UKGC is stringent in its approach, and this has led to a situation in which spinning the reels or betting on a football match online is even more highly regulated than in a gaming arcade or bookmaker’s in the middle of Exeter High Street.
Back in the 90s, the world of online gambling was murky, unregulated and a little like a cyberspace version of the wild west. So the work done by the UKGC and similar regulatory bodies around the world, along with its positive impact on gamers, should not be underestimated. However, for those in the igaming business, it can sometimes be a difficult organisation to satisfy.
Addison’s license revoked
Gibraltar-based Addison Global is one company that would certainly agree with that contention. The business behind the MoPlay betting app had its UK license suspended by the UKGC on 20 Feb. This meant the app could no longer accept bets from its thousands of UK subscribers, and within days, MoPlay was declared insolvent.
It looks like the end of the road for the mobile-first business that was established in 2017 by former William Hill man Juergen Reutter to challenge the established bookmakers. While the exact reasons for the revocation of license have not been released, the Gambling Commission has cited sections 116 and 118 of the UK Gambling Act, stating that the company has failed to comply with the licensing conditions.
Financial instability is likely to lie at the root of the problem, as only a day earlier, Addison had lost its license in Gibraltar as a result of significant debts and a failure to honour outstanding liabilities.
Neither the first nor the last
Addison Group is not the first business to face the harsh enforcement measures of the Gambling Commission this month. In fact, the news came only days after online gambling news site VegasSlotsOnline reported that casino gaming and sports betting platform Matchbook ground to a halt after owner Triplebet Ltd had its license “temporarily suspended” by the Gambling Commission. Again, the reason for the suspension has not been released, but significant unpaid liabilities on its high-roller platform Eurasia Sports are believed to have left the business facing a deficit in excess of $12 million.
For businesses operating in the igaming and sports betting world, staying on the right side of the Gambling Commission is the top priority, and failure to do so can be catastrophic. For everyday gamers and sports fans, though, the work of the commission means a secure environment in which to place bets with confidence.
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