UK Gambling Minister Signals Potential Crackdown on White-Label Operators

Key Takeaways 💬

• UK government has issued a warning to white-label operators signalling potential action
• The changes are related to how these operators promote their oversea brands

Baroness Twycross revealed that her department, alongside the Gambling Commission, is actively gathering evidence to assess the scope and impact of such practices.
She stated:

“If further action is needed, we will take it.”

Concerns Over White-Label Practices

White-label arrangements allow companies to operate under an existing gambling licence held by a provider, bypassing the need for their own individual licensing. This setup means brands can launch operations without direct oversight from UK regulators.

These concerns have been thrust into the spotlight following a controversy involving Leicester City’s sponsor, BC.Game. The company has come under scrutiny after a Curaçao court reportedly declared the operator was facing bankruptcy. BC.Game recently ceased its UK operations, prompting speculation about the future of its sponsorship deal and fuelling wider debate about white-label practices.

Legal experts have noted that any regulatory clampdown on white-label operators could have significant implications. Melanie Ellis, a partner at Northridge Law, commented, “It is not clear what such action might involve, as requiring all advertisers to hold their own licence could mean the end of white label arrangements.”

Ellis suggested that while an outright ban on white-label setups might be drastic, the government could focus on strengthening the processes for white-label partners. This approach could place greater responsibility on licence holders to ensure their associates meet regulatory standards.

Funding Problem Gambling Prevention

Baroness Twycross also highlighted recent developments aimed at tackling gambling-related harm. She discussed the newly introduced levy to fund research, treatment, and prevention services for problem gambling. This funding, she said, would enhance the NHS’s capacity to deliver unified and high-quality care for individuals affected by problem gambling.

“This funding for the NHS will ‘unify service provision and raise standards,’” Twycross explained. She also emphasised the role of third-sector organisations such as GambleAware in supporting this mission.

The minister underscored the importance of getting the framework right, stating, “It is hugely important to get this decision right as we build a sustainable, future-proof system. We hope to confirm our plans in the coming weeks.”

The government’s commitment to addressing gambling-related harm through enhanced funding and collaboration signals a continued focus on protecting consumers and raising industry standards as well as promoting responsible gambling.