UKGC Presses Government to Address Crypto Gambling

UKGC Presses Government to Address Crypto Gambling

Andrew Rhodes, Chief Executive Officer of the UK Gambling Commission (UKGC), has indicated that the growing influence of cryptocurrencies in gambling may soon require decisive government intervention. Speaking during his annual CEO Briefing, Rhodes described the intersection of digital currencies and gambling as one of the most pressing structural shifts currently shaping the market.

Rhodes pointed to the accelerating adoption of cryptocurrencies among younger demographics, noting that the pattern has moved faster than regulators initially anticipated. He suggested that this demographic shift could soon bring the issue to the forefront of public policy, particularly as younger users seek to use digital assets in environments still governed by traditional financial rules.

“What I thought was a five-year-away problem, perhaps a year or two ago, I think is now an 18-month-to-two-year challenge,” Rhodes said, acknowledging the pace of change and the urgency for regulatory dialogue.

While emphasizing the need for preparation, Rhodes clarified that the Commission does not currently plan to begin licensing crypto gambling operators. Instead, he framed the question as one that requires a government-level approach, given its far-reaching implications for financial integrity and consumer protection. He outlined the complex issues that would accompany any regulatory framework, ranging from how cryptocurrencies would be treated as a source of wealth to how risks such as money laundering or volatility might be managed.

“This is going to have to be a government-level discussion, and it is a government-level decision because once you open that door, you cannot close it,” he stated. “It brings questions around whether crypto is treated as a source of wealth, a source of funds, and what conditions or safeguards would need to be established.”

Rhodes observed that the Financial Conduct Authority (FCA) has begun examining how to design an appropriate framework for digital assets, suggesting that a coordinated approach may eventually emerge between financial and gambling regulators. He added that the momentum in the use of digital currencies means governments cannot simply overlook the issue.

“The reality is that growth in those demographics means governments cannot ignore that pattern,” Rhodes said, noting that the FCA’s ongoing work could form part of a broader framework to address these shifts.

Beyond crypto, Rhodes discussed other developments reshaping the gambling landscape. He cited the continued expansion of society lotteries, with total sales now exceeding £ 1 billion annually, as well as the rise of unregulated prize draws. According to Rhodes, these areas show a notable overlap in customer demographics and reveal changing patterns in consumer behavior. “We’ve seen an interesting diversification in where consumers are spending their money,” he said, noting that prize draws now rival betting in terms of participation rates.

Rhodes also addressed the increasing consolidation within the gambling sector, where traditional gambling companies and lottery operators are increasingly intertwined through mergers and acquisitions. He pointed to several examples, including Flutter’s acquisition of Italian lottery provider Sisal, Bally’s connection with Intralot, and FDJ’s acquisition of Kindred Group. Allwyn’s expansion into the broader gambling market further illustrates the trend.

According to Rhodes, this convergence of business models will likely raise new regulatory questions about how distinctly different products, such as lotteries and online gambling, intersect. “This greater integration will bring some interesting questions as to how those very different types of products might interact,” he noted.

Rhodes’s remarks also carried a firm message regarding compliance and enforcement. He warned that the regulator intends to intensify its oversight activities and will no longer issue warnings before taking disciplinary action. “There will be no warnings,” he said, revealing that nine suspensions had already been issued in recent weeks, particularly concerning software provision and self-exclusion breaches.

The UKGC’s current approach, Rhodes explained, reflects the Commission’s determination to ensure that operators meet expected standards without delay or excuses. “These are all issues that we have repeatedly warned about,” he said. “We will not accept any excuses, and the sector should expect more enforcement action in the coming weeks and months. We’ve been working on this area very actively, and we don’t intend to stop.”