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    UK concerns about black market betting and misleading casino ads

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    The UK Authorities show concerns about misleading casino-style ads and the rapid growth of black market gambling.

    The year may be drawing closer to reaching its end, but this doesn’t mean the online gaming industry has nothing interesting happening.

    In the last couple of years, we’ve clearly seen an increased focus on responsible gambling, including player safety and cleaning up the advertising sector.

    We also see a rise in black market betting and tighter regulation and policing of online casino-type ads.

    The black market betting concern

    One of the biggest concerns within the UK at the current time is the increase in black market gambling. According to a new study, around 1.5 million Brits stake around £4.3 billion on the black market instead of regulated UK casinos every year.

    It has been found that these illegal casino platforms have been aggressively targeting UK customers, which ultimately undermines player protection. At the same time, they’re also taking funds from the treasury and sports.

    The study also indicates that about 1 in 5 people aged 18–24 bet on unsafe and unregulated gambling operators via a secure online messaging app.

    Furthermore, these black market operators are targeting players who have already opted for self-exclusion from regulated betting sites. In terms of finance, it shows that these black market platforms could deprive the treasury of £335 million, which is about the equivalent of 1,700 nurses’ salaries or 1,500 teacher salaries.

    With £2.7 billion staked on illegal sites, it impacts the regulated industry as well as the economy. According to Betting and Gaming Council CEO Grainne Hurst, it’s shocking to see the true scale of how the black market is growing and impacting every leg of the online betting industry.

    With its disregard for regulations set by the UK Gambling Commission, it is a threat not just to the regulated industry but also to player safety.

    Steps for security

    As sites are targeting players aggressively, the UK’s Advertising Standards Authority (ASA) has already gone to work in banning a range of social casino ads via platforms like TikTok.

    According to the authority, these ads from companies like SpinX Games Ltd, Zeroo Gravity Games LLC, Huuuge Global Limited, Mobee Co Ltd, and Dataverse Co Limited have been flagged for their misleading ads, which make it seem like consumers can win real cash. These sites portray slot-type games and do not clarify that they are merely social casino apps where it's not possible to win or withdraw cash.

    Every company that played a role was found in breach of the UK’s Code of Non-broadcast Advertising and Direct & Promotional Marketing. Mobee Co Ltd was the only company that failed to respond, which was flagged as apparent disregard according to the ASA.

    Increased efforts

    The ASA has been focusing its efforts on effectively monitoring and regulating all paid-for gambling-related apps which could potentially target vulnerable groups or young people.

    And TikTok, which also has its own strict advertising policies, was quick to act and make sure these problematic ads were removed from its platform. According to the platform policy, there is a strict restriction against any ads that imply real-money winnings. Which each of these social casino apps was found in breach of.

    For the Social Casino industry, this has been a clear reminder that all advertising should be transparent and truthful. While social casinos can offer prizes, they do not have any offers that are real-world cash winnings.

    Trusted companies should and are setting the standard with their transparent approach to social gaming. As for the companies in breach, they will all need to redo their advertising strategies to ensure they are compliant with UK gambling regulations and no more misleading ads are posted online.

    Leave us a review on Trustpilot!

    Published: October 23, 2024

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    Deni avatar image

    Article by Deni

    CasinoWow Contributor

    Hi, I’m Deni and I am here to ensure you have all the information you need to make informed decisions about online casinos and games and, of course, have fun while doing it. I do so through in-depth research and a keen eye for detail resulting in comprehensive reviews and engaging articles. Let’s explore the iGaming world together!

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