The Betting and Gaming Council (BGC) has introduced its first-ever International Best Practice Guide, a key resource aimed at supporting online gaming operators and policymakers worldwide in understanding effective regulatory strategies. Compiled by professional services firm Alvarez & Marsal (A&M), the guide outlines core regulatory objectives and examines how various jurisdictions approach these goals.
The guide, launched by BGC CEO Grainne Hurst at the G2E conference in Las Vegas, addresses the significant evolution of the online gaming sector over the last two decades, with more than 100 jurisdictions now offering online gaming compared to only a few in 1994. With this growth, regulatory approaches have diversified, making it essential for stakeholders to evaluate different methods critically.
This resource highlights five primary regulatory objectives crucial to all jurisdictions:
High Channelisation: Encouraging gaming within regulated markets.
Consumer Protection: Safeguarding minors and vulnerable individuals through comprehensive responsible gambling measures.
Preserving Consumer Choice: Promoting competition within the market.
Crime-Free Gambling: Ensuring sports integrity and preventing criminal activity.
Raising Tax Revenue: Incentivizing operators to invest within the jurisdictions they serve.
The guide presents a consolidated body of evidence, enabling a comparison of regulatory frameworks. By examining different strategies, the BGC aims to inform decision-making in both emerging and established markets. The report emphasizes that overly restrictive regulations can lead to increased illegal gambling activity, which poses a significant threat to both consumer protection and tax revenue. This concern is underscored by a recent BGC study estimating that 1.5 million people in the UK wager up to £4.3 billion annually in the unregulated black market.
A&M’s Betting and Gaming practice, which covers strategy, compliance, technology, and other areas, played a crucial role in developing the guide. Titled Online Gambling Regulation: International Precedent and Best Practice, the report offers valuable insights for policymakers revisiting or establishing regulatory frameworks.
BGC CEO Grainne Hurst, said: “For the first time, the BGC has brought together the lessons, both positive and negative, which have been learned by operators and regulators around the world when it comes to the online gaming sector.
“This sector will no doubt continue to grow internationally, offering huge potential benefits to existing markets and those currently developing.
“Through effective regulation of this new growth sector, governments can achieve their core priorities of raising tax, boosting growth and jobs, while delivering high standards for player protection.
“In the UK, we have seen that firsthand, where balanced regulations have created a sector which raises billions in tax and investment in the economy, while supporting tens of thousands of jobs.
“But the risk posed by the wrong regulatory balance can undermine that good work, and give a foothold to the growing unsafe, illegal gambling black market, which is an ever-present threat in the UK.
“We are proud that BGC members are now a genuine global success story and a Great British export – that is the prize when the right regulatory foundations deliver sustainable success.
“If you are a policymaker navigating this new growth sector, or an operator seeking to broaden your international footprint, then this guide is for you.”
Pierre Tournier, BGC International Director, added: “The online gaming market is a complex landscape involving a huge range of potential regulatory choices and outcomes.
“But for too long there has been a crucial evidence gap when those choices are considered by policymakers. Our ambition for this new guide is that it finally offers a solution to that problem.
“Drawing on the lessons from around the world, operators and policymakers, can take a global view of the pitfalls and benefits of different approaches, and make better policy decisions as a result.”
Adam Rivers, A&M’s head of Betting and Gaming in EMEA said: “A&M are proud to have worked with the BGC on this important project which provides a new reference point and assessment of gambling regulation globally.
“Effective regulation plays an important role in ensuring the safe and effective functioning of gambling markets, supporting positive outcomes for regulators, operators and consumers.”
The report is available upon request by contacting Pierre.Tournier@BettingandGamingCouncil.com.
