In a recent interview with iGF Special Correspondent Lauren Harrison, Kirsty Caldwell, founder and CEO of Betsmart Consulting, and Helen Walton, founder and COO of G.Games, shared their insights as prominent figures in the iGaming industry. Both women exude passion for their businesses and play significant roles in shaping the landscape of iGaming.
Their presentation of innovative strategies couldn't have come at a more opportune moment, as the British gambling industry braces itself for its most significant regulatory overhaul in two decades. This historic juncture, marked by political uncertainty and the far-reaching impacts of the pandemic, has spurred a profound modernization of gambling regulations. As Britain navigates this transformative period, the iGaming sector faces formidable challenges in adapting to the demands of the digital age.
Kirsty and Helen, distinguished members of the UK Gambling Commission's new industry forum, stand as senior women leaders at the forefront of this period of change and renewal. Their invaluable contributions and insights are instrumental in guiding the industry through this tumultuous transition.
In the interview with Lauren Harrison, Kirsty and Helen delved into the challenges and opportunities presented by the forthcoming legislation, outlined in the White Paper. Their expertise and leadership offer a beacon of hope amid the complexities of regulatory reform, inspiring confidence in the resilience and adaptability of the iGaming sector in Britain.
— You both recently participated in the UK Gambling Commission (UKGC) industry forum. The previous Gambling Act was passed in 2005, almost two decades ago. What do today's reforms mean for the UK gambling industry?
Kirsty:
—The official position on the reasons for reform of the Gambling Act has always been to update the Act and make it relevant for the digital age, and I think the proposed changes are consistent with this. Of course, many of the reforms arose from a desire to strengthen the overall system of player protection from operator control to responsible game design, regulatory resourcing, responsible marketing, and education and treatment options for gambling addiction. I believe it is important to take a holistic approach to improving the landscape of responsible gambling, as for too long the burden has fallen solely on B2C operators.
Helen:
—I can only comment on the context that I see around me. Since the coronavirus pandemic, online gaming has become significantly more global, although regulation is becoming more local. The types of games that may deserve to be considered gambling have also increased: games with a second skin, loot boxes and in-app purchases of games and social networks. Game patterns, audience composition and consumer expectations are also changing. It is always extremely difficult for regulators to respond quickly enough to change - this is one of the reasons why objective or results-oriented regulation is so important, rather than randomly rigidly incorporating specifications into law. In my opinion, the job of regulators is to ensure compliance with specific rules, it is important to provide useful recommendations. At the same time, the boundaries of the rules must be sufficiently broad and democratic to take into account possible future changes. I have to work with various regulatory bodies around the world. And I would like to see all these organizations work together to create regional or global standards. But maybe I'm tilting at windmills…
— Elections in the UK are inevitable, and everyone expects a radical change of government. Do you think this will impact national gambling reform?
Kirsty:
—In my opinion, the reforms have gone too far to be curtailed by changing the government. From an operator's perspective, it has become incredibly difficult to understand whether new policies will consider current regulatory procedures to be compliant. Everyone is nervous about investing in further improvements and changes because it is not yet entirely clear what changes will occur. Really, we just need to get on with the job of clarifying exactly what direction the reforms are going and, more importantly, what the regulatory changes that support them will look like.
Helen:
—I really have no idea! I believe that whichever party is in power should not only be concerned about potential public health issues. She will also have her own pragmatic view of the benefits of an industry that employs tens of thousands of people and generates significant revenue for the state.
— What, in your opinion, are the most serious problems and pitfalls facing the UK gambling industry?
Kirsty:
—I think one of the biggest pitfalls is the ongoing situation of uncertainty. The UK sector was once considered the leading gambling market in the world, but confusion and uncertainty around reforms are increasingly harming this well-established positive reputation. One of the biggest opportunities has to be the creation of an Industry Forum panel. This is a unique idea and I really hope his work helps bridge the gap between the industry and the regulator. I believe that the more closely different stakeholders can work and interact, the stronger the industry will ultimately become.
Helen:
— In an ideal world, the needs and desires of customers, the commercial interests of the industry and the protective objectives of the regulator are aligned. We need to see products that appeal to a wide range of people, offering affordable entertainment, an industry that makes money and can invest in the long term, and a regulator that ensures a level playing field and introduces guidelines that encourage responsibility without stifling innovation and growth. In a nightmare world, these various groups come into conflict - the regulator stifles the growth of the licensed industry, resulting in the industry offering worse terms to consumers, pushing them into an unregulated black market, which in turn causes more harm, creating a more hostile environment and reactive regulation. The reality lies somewhere in the middle. But it seems to me that the opportunity lies in a better alignment of interests. Pitfalls and troubles in the industry arise when we cannot agree. Thinking holistically about the system, remaining flexible enough to cope with change—whether in products, technology, or behavior—and basing our decisions on data rather than preconceptions are all part of a successful strategy for dealing with reform. The industry must remain open and honest, willing to engage and not be defensive.
