A roundup of the 2024 ICE VOX World Regulatory Briefing

This year's ICE VOX World Regulatory Briefing took place on 5-6 February in London, bringing together policymakers, regulators and the industry to debate gaming’s key regulatory, legal and compliance developments.

Hayley Brady and James Balfour attended from our Media and Digital team, and had the following insights to share…

Latest on the UK Gambling Act Review

It has been almost a year since the Department for Culture, Media and Sport's (DCMS) white paper (High stakes: gambling reform for the digital age) ("White Paper") was published (see our blog on the white paper here), so it was useful to hear updates from Sarah Fox (Deputy Director at DCMS) and Tim Miller (Executive Director at the UK Gambling Commission (UKGC)) as to next steps for implementation of the reforms. In particular:

• The DCMS is aiming to implement as many of the white paper proposals as possible by summer 2024 (though this is subject to delays resulting from parliamentary scrutiny)
• We are expecting the UKGC to announce next steps following its first round of consultations related to implementation of proposals contained in the White Paper (which closed in October last year). One of the key proposals contained in the consultations is the introduction of new obligations on operators to conduct financial vulnerability checks and financial risk assessments on customers to understand if their gambling is likely to be harmful.
  • Any new rules on financial risk checks will likely be introduced as part of a pilot run by the UKGC, rather than a blanket 'switch-on' of new rules.
  • The European Gaming and Betting Association is working on an interesting project to create a European standard for markers of harm, which may ultimately feed into the new risk checks developed by the UKGC and other regulators.
• The UKGC is working closely with the Gaming Regulators European Forum and the North American Gaming Regulators Association so as to take into account the global landscape, share learnings and best practices and explore the possibility of globally harmonised approaches in certain areas (for example in relation to tacking the black market).
• As part of the Digital Regulation Cooperation Forum, the UKGC is also working closely with the Information Commissioner's Office (ICO) in the UK to support the delivery of new safeguards for gambling consumers.
  • In particular, the UKGC and ICO have been working together in relation to the trial of a 'Single Customer View' whereby gambling operators would share data between themselves in relation to certain users where there are markers of harm. See here for more information.

Birdseye view of the global landscape

The global regulatory town hall provided some great insights into how gambling regulatory regimes are evolving in different markets around the world. Some common themes and trends cropped up:

• The convergence of gambling operators (resulting in fewer operators struggling for market share) can lead to increased stimulation of gamblers (via increased advertising) and excessive gambling (this link has been observed in France and Canada).
• The emergence of new forms of gaming and gambling (particularly in connection with NFTs, blockchain technology and fantasy sports) has proved challenging for regulators, but some jurisdictions (e.g. France) are trialling new regulations in this area.
• Where online gambling is restricted or illegal (for example in South Africa), it has been difficult to enforce those restrictions against online providers based outside of the jurisdiction, which has led to growth in the black market.
• The lack of harmonisation of regulatory regimes (especially within the EU) is a major challenge, especially for hub jurisdictions such as Malta. Whilst some regulators are pushing for standardisation where possible (for example in relation to anti-money laundering requirements), others consider harmonisation unrealistic and prefer focusing on exchanging best practices.

Other insights

• Whilst there is plenty of research and evidence into the harms that can be caused by advertising of gambling services, there was also recognition of the fact that a complete advertising ban can end up boosting the black market as a result of customers being unable to distinguish between legal and illegal gambling services.
• Bill Hornbuckle, CEO & President of MGM Resorts International, shared some interesting insights into the future of gaming and gambling, with the advent of 'carry-on gaming' (where users start a game from their personal devices at home and continue it on a device in a casino) and telegaming, where users can play casino games virtually with celebrities.
• There was a general consensus that cryptocurrencies and related technologies are unlikely to take root in the gambling world until challenges around anonymity and user verification are overcome (particularly in light of the increasing importance of anti-money laundering checks).
• In relation to protection of children, it was acknowledged that for generations which have grown-up in the online world, the focus on gamification of non-game environments (e.g. in the context of education, social media etc.) means that the gateway to gambling starts much earlier than 18, and therefore education around responsible forms of play should also start at an early age.
• Whilst there has been a tendency to restrict the use of influencers in gambling advertising (especially influencers who are likely to appeal to children), regulators should also explore the use of influencers to promote responsible gambling amongst younger audiences.

Feel free to reach out to Hayley and James if it would be useful to discuss any of the above or any other gaming or gambling queries.