Why the UK is the online casino gaming hotspot

Why the UK is the online casino gaming hotspot
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The UK has shown itself to be one of the most successful countries in the world when it comes to creating an environment for online casinos to flourish. The online casino industry in the UK is said to bring in revenues of over £2 billion per year, and this figure reflects the sheer quantity and quality of the nation’s gaming sites.

From classic bookmakers like William Hill now featuring casino games, to dedicated gaming sites like GreenPlay, it seems that there’s no stopping the UK online casino revolution. For a good overview of what’s available, you can check a final list with best UK casinos to see who the most highly-rated brands are in the industry. So what’s behind this incredible growth, and what challenges lie ahead for the vibrant UK casino gaming scene?

Deregulation Favours Increased Competition

Ever since the UK government unveiled the Gambling Act 2005, it has served to greatly liberalise how the nation’s online gambling sites can operate. While there are still plenty of measures in place to ensure that customers gamble responsibly, on the whole it has proven to help UK casino sites compete in a free and open market.

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This is in marked contrast to other nations such as the USA, Australia and New Zealand, where there is strict regulation that actively prohibits online casino gambling. Such measures have frequently forced casino gaming fans to seek offshore sites that offer their customers very little in the way of protection.

But as each online casino site in the UK must obtain a license from the UK Gambling Commission, it has helped to professionalise the industry significantly. As a result, the vast majority of casino sites in the UK offer a level of customer service that’s sorely lacking in other nations.

While there were understandable concerns about the way in which the free market would eventually lead to something of an oligopoly, it seems as though there is still room for major brands and minor players alike.

A Mature Approach to Advertising

There have been many efforts made to ensure that only those of legal age to gamble get exposed to adverts from UK online casinos. This can be seen through many updates to the legislation covering gambling TV advertising. As a result, an online casino can now advertise their products on terrestrial television, but they can only do so after certain hours.

Such an approach is a marked contrast to other countries which prohibit all forms of advertising for online gambling firms. By doing this, it severely stunts the growth of such companies and indirectly harms the tax revenues generated by the industry.

The UK also enjoys relatively loose legislation regarding how online casinos can sponsor sporting events. While there have been efforts made to try and stop football shirt sponsorship, such an attempt could harm competition in the industry.

Harnessing the Latest Online Technologies

Above all, it’s the way in which casino sites are able to use online technologies that could be their greatest asset. While the video gaming world is only just starting to see the advent of live-streamed games with the likes of Google Stadia, the UK’s online casino fans have long been able to play live casino games like blackjack and roulette via streaming technologies.

Plus with progressive jackpot slots games being able to tie together the potential winnings of many slot machines into one massive payout, it has helped to promote the nation’s casino sites in a way far more powerful than any piece of advertising. All of which paints a very positive picture for the future of the UK’s online casino sites.

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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