The UK gambling market is famous for being one of the most stringent and tightly regulated in the world… and the UK Gambling Commission (UKGC) has a reputation for setting the strictest standards in the entire industry, bar none. And this is no more apparent than when we look at the subject of cryptocurrencies. There are plenty of regulatory bodies that have already embraced cryptocurrencies in online gambling, and you’ll find plenty of casinos licensed by Malta, Curacao, and Costa Rica that are happy to accept Bitcoin, among others. But the UKGC has, so far, been a lot more cautious with regard to giving crypto gambling the go-ahead.
And of course, this has led to the obvious question… will the UKGC ever be ready for it? Will UK players ever be able to spend their cryptos spinning reels or making Premier League bets now that the 25/26 season is officially underway? Well, it’s a tricky one. To be fair, the UKGC has its reasons, and there’s a lot to consider when taking the step into the crypto gambling world. Let’s take a look at exactly why the UK Gambling Commission seems to be dragging its heels – and whether or not, one day, it might be persuaded to take the leap of faith.
The Reasons the UKGC Is So Hesitant About Crypto
Well, the UKGC’s reluctance all boils down to a few concerns – and they’re not entirely unfounded.
Anti-Money Laundering
One of the reasons cryptos are starting to become so popular in the real world is because of how flexible they are. You can move them around anonymously – across borders, in and out of different countries, all with practically no regulatory oversight. And because of that, they’re the ideal solution for anyone who wants to launder money. The UKGC is legally obligated to enforce stringent anti-money laundering procedures – and cryptos unfortunately pose a serious risk to compliance.
Protecting Players and Preventing Fraud
The UKGC is there to protect players and punters from harm. Blockchain transactions can’t be reversed or refunded – and once you’ve sent money out, there’s no way you can reverse it or get it back. So, if a punter makes a mistake or sends money to a betting site that ends up being a scam site, it’s practically impossible to get back. With a fiat currency, you can contact your bank provider and ask for a chargeback. Cryptos just don’t and can’t offer this safety net because they’re decentralised… there’s no one to turn to, no central organisation to help you. As such, the Gambling Commission has reason to be concerned about how a site might handle refunds and disputes.
Highly Volatile
If you’re au fait with cryptocurrencies, you’ll be aware of the volatility issue. The value of Bitcoin, Ethereum, and other coins can fluctuate a lot in just a few hours. The value of your BTC could drop by thousands overnight… which means you could make a deposit worth £100 today and it might only be worth £70 tomorrow. Or it could potentially be worth £130 tomorrow. As such, the UKGC needs to find a way to make sure it’s fair for everyone when the size of stakes and winnings fluctuates so dramatically.
Why There’s a Chance We Could See it in the Future
However, that’s not a hard no. There’s still the chance the UKGC could come round to the idea.
Players Want It
Firstly, more UK punters are starting to be aware of and use cryptocurrencies, particularly with the younger generations. Young punters know a lot more about things like digital wallets, blockchain tech, and decentralised finance – and if too many people are asking for it, the UKGC may end up giving in to the pressure.
Faster and Cheaper
The FIAT currencies we use, particularly bank transfers, can be slow and expensive. But with cryptos, both deposits and withdrawals are generally completed in moments, and usually with just the smallest fees. This is obviously attractive to both players and betting sites.
It’s Happening Internationally
As we said, international betting sites are already starting to use them – and the number of crypto-friendly betting sites is growing day by day… and UK operators have to try to compete with them. If the UKGC doesn’t bend, then they may find that UK punters start using offshore sites instead. Not only is this risky for players as they won’t be fully protected, but it also means the UK government will lose out on tax revenues.
What Needs to Change?
If the UKGC were to start considering it, there would certainly need to be changes:
- Full KYC Checks: A player would need to link their crypto wallet to a verified identity before they could use it to gamble… which means that while players would still benefit from the speed of blockchain, they’d lose the anonymity of it.
- Stablecoin Integration: They might start with cryptocurrencies that are pegged to fiat currencies, like USDT, which would eliminate the volatility issue.
- Strict Monitoring: Sites will need to start using advanced blockchain analytics tools, like those used in some banks, which will help them to spot any suspicious or potentially criminal activity.
The Most Likely Scenario
It’s most likely that, in the future, we might start to see the UKGC phasing it in. It could mean that licensed operators might be allowed to accept certain cryptocurrencies under strict conditions. They could also potentially only accept crypto punters who have passed proper verification checks… possibly starting with stablecoins and gradually moving towards the more volatile coins later, when safeguards have been tried and tested.
It’s likely that, if anything, the UKGC will take a slow and controlled approach, test out the waters without jeopardising the safety of players.
Ultimately, it’s a tough situation for the UKGC. For now, the UKGC will probably tread carefully and take it day by day. If and when it does happen, it’ll be a managed rollout rather than a crypto free-for-all.