In recent years, it’s hard to ignore that the UK has seen a slowdown in the launch of new online casinos – unlike many other regions where the iGaming market has never been better. But why is this?
Here, we’re speaking with Jamie Rosen, the CEO and Co-Founder of Hideous Slots who gives us his insights into exactly why this is – and what it could potentially mean for the future of the UK casino market.
NEXT.io: Hi Jamie, thanks for joining us. Why do you think we’ve seen such a slowdown in new online casinos launching in the UK compared to other regions?
JR: Hey, it’s great to be here. This is such a multi-faceted question and there are all sorts of reasons. However, the main factor contributing to the slowdown is the regulatory framework surrounding online gambling. It’s hard to overlook that the UKGC has some of the strictest rules in the world – and although they’re there to protect players and promote responsible gambling – which is commendable, the flip side is that it means it’s a lot harder now for new operators to be compliant.
Getting a UKGC license isn’t just really expensive – but it can also be a dauntingly long and complex process. New sites need to be able to demonstrate that they are adhering to seriously tough compliance measures like anti-money laundering processes and offer enough responsible gambling tools and mechanisms to protect their players. All of this can be time-consuming and expensive – so it’s difficult for smaller or less experienced operators to get their foot in the door.
NEXT.io: How do the regulations in the UK compare to other geos?
JR: They are so much tougher. The UK has set the bar for standards… but it comes with a price. For example, casinos have to go through affordability checks that are a lot tougher than those you’ll see in most other markets. These checks make sure that players don’t end up spending more than they can afford, but they’ve also created friction in the overall customer experience.
In contrast, regions such as Curacao have a much more relaxed regulatory framework – so it’s a lot cheaper and easier to launch a new casino. On the downside, players don’t get the same level of protection… but it is quicker and easier for a new casino to start up.
NEXT.io: How do the UK’s advertising rules affect this?
JR: The UK’s advertising rules are also another huge hurdle for new online casinos. The UK has the Advertising Standards Authority – with incredibly strict guidelines about how you can market and sell gambling products. You can’t use any imagery or language that might appeal to underage gamblers – and there are also certain restrictions on celebrities and influencers endorsing sites – which can make it a lot harder to stand out and actually create a solid business. New casinos can find that it’s costly… and definitely not easy to run a compliant and effective ad campaign.
These rules make it harder for new casino sites to stand out, especially when competing against established brands with bigger budgets and a stronger foothold in the market. For a new operator, the cost of running compliant ad campaigns can be prohibitively high.
NEXT.io: Are there simply too many casinos out there already?
JR: The UK market is one of the biggest iGaming markets in the world and there are already hundreds of operators out there – many of whom are already well-established and already have loyal customer bases. Trying to break into an already overcrowded space is really hard – especially if you don’t have the same resources as the bigger names.
It’s also a lot more expensive to get new players now – affiliates and advertising sites are charging more – and there are so many sites vying for new players. Someone looking at starting out might simply look at all of these challenges and decide it’s better to focus on a somewhat less saturated market.
NEXT.io: Despite the many challenges out there, do you think there are still opportunities for new casinos to enter the UK market?
JR: Absolutely. It might be tricky, but there’s still plenty of room for innovation – and as such it just takes some imagination to be a little different. If a new casino can offer something that’s unique to them — like innovative games, brand-new technology, or some other standout feature— they can carve out their own niche.
One thing new casinos can really focus on is offering players a more personalised gaming experience. Players have really started to look for casinos that take the time to understand their preferences and create an experience that’s right for them. So, if a new casino invests in AI-driven personalisation then this can be something that will give them a fighting chance of survival.
NEXT.io: Looking to the future, do you think it’s possible that the UK will start seeing a resurgence in new casino launches?
JR: Well yes, it is possible, but not as it is right now… we need to see a change in the UK’s regulatory landscape first. The UKGC has hinted that there will be some changes, moving forward, to make the market more appealing to businesses but without sacrificing player protection. This could potentially mean tweaking licensing procedures to simplify it a bit – or potentially offering tiered licenses to encourage more operators to enter the market.
New casinos could also start working with established operators – which means that they can test the waters without having to carry all the burden of compliance.
NEXT.io: Do you have any advice for anyone who’s looking to launch a new casino in the UK today?
JR: My main advice would be to make sure you do your homework and be prepared for all the many challenges you’ll face. Make sure you focus on compliance from day one – and it’s a good idea to hire a team of experts, if you can, to help you ensure that your new business is completely bulletproof.
You should also invest as much as you can afford in technology – especially AI and data analytics so that you can give your players exactly what they’re looking for – and make sure they come back for more. And finally, you should never underestimate the power of branding. Make sure you have a strong brand to help you stand out!
NEXT.io: Any final thoughts?
JR: If you are thinking about trying to launch a new casino, then just remember that, if you succeed, it’s well worth it. The UK has one of the most respected casino markets in the world – and if you can make it here, you can make it anywhere. The barriers may be high, but the rewards are well worth it!