Could ‘Not on GamStop’ Casinos Be Andy Burnham’s Next Gambling Target?

Searches for ‘not on GamStop’ are currently surging in the UK, highlighting an uncomfortable problem. How does the government better tackle unlicensed gambling?

The search term refers to gambling sites that operate outside GamStop. This is a mandatory, national self-exclusion scheme. That means all online gambling companies licensed in the UK are required to participate. It prevents anyone who registers with the service from being able to gamble with a UK-licensed operator.

The problem is that GamStop cannot prevent people from accessing gambling sites that sit outside the UK-regulated market. The growing interest in the search term suggests there is an appetite among some British gamblers for exactly that.

This raises a difficult question for Andy Burnham's government. How do we stop offshore gambling operators reaching British consumers, when British consumers are actively looking for them?

The current offshore gambling crackdown

It’s important to remember that not on GamStop casinos aren’t necessarily black market casinos. They simply exist outside of UK regulation. That means they may have no licence, they may have a different operating licence, but they do not have a UKGC licence.

At the moment, the government is considering tougher restrictions on unlicensed gambling businesses. In July, the Department for Culture, Media and Sport launched a consultation on plans to ban unlicensed gambling sponsorship and advertising in Great Britain. This followed controversy over offshore gambling companies sponsoring British sports teams.

Currently, an overseas gambling company can enter into an advertising or sponsorship agreement in Britain as long as its gambling services cannot be accessed by UK consumers. In practice, that’s as simple as geo-blocking its website.

However, the government rightly argues that the arrangement is no longer sufficient. Geo-blocking restrictions can be easily circumvented using a VPN.

Its proposed changes would prevent unlicensed operators from advertising or entering sponsorship agreements in Britain, including within sport. The government says the change is intended to have three key impacts:

• To protect consumers from platforms that may not offer equivalent player protections
• To defend the regulated gambling market
• To address money laundering concerns

Could gambling affiliates come under greater scrutiny?

Affiliate marketing could prove another important part of the government's response. The Advertising Standards Authority (ASA) has recently increased its focus on how gambling is marketed online. In a recent report, this included advertising produced or distributed by third parties.

Rather than a consumer searching for a particular offshore casino, they can search a broad phrase such as ‘casinos not on GamStop’ and be provided with direct comparisons, rankings and reviews from affiliate sites.

Existing UK advertising rules already place responsibilities on gambling operators and their marketing partners. Tougher enforcement for third party marketers might have to become part of the solution to the not on GamStop problem.

Could payment providers hold the key?

There are several other points in the journey where regulatory change could intercept. However, one crucial one is payment providers. These offer a potential pressure point that the UKGC has already begun to explore. Rather than trying to prevent consumers finding offshore gambling sites altogether, regulators could work with payment providers to disrupt transactions involving illegal operators.

While the recent surge in searches highlights a difficult problem, it’s not an impossible one. Making offshore sites a less accessible option is going to be an ongoing battle for Burnham’s new government to solve.