UK Gambling Commission Considers Crypto: A Game Changer for Online Betting?
The UK Gambling Commission (UKGC) is charting a fresh course, exploring the possibility of allowing licensed betting operators to accept cryptocurrency payments. This move, announced by Executive Director Tim Miller at the Betting and Gaming Council’s (BGC) Annual General Meeting, signals a potential shift in how Britons gamble online and a proactive approach to combating the growing illegal gambling market.
The Rise of Crypto and the Allure of Unlicensed Sites
The UKGC’s consideration of crypto payments isn’t happening in a vacuum. Miller highlighted that searches for cryptocurrency options are among the top drivers sending British gamblers to unlicensed, and therefore unregulated, websites. This presents a significant risk to consumers, as these sites lack the safeguards and protections offered by licensed operators. Allowing regulated firms to offer crypto as a payment method could potentially draw players back into the legal framework.
“Our illegal markets research also gives us evidence that crypto is one of the two biggest searches that lead British gamblers to illegal sites,” Miller stated.
Navigating the Regulatory Landscape
The timing of this exploration coincides with the UK government’s efforts to bring cryptoassets under tighter regulatory control. The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025, currently before Parliament, will bring crypto activities under the purview of the Financial Conduct Authority (FCA), with the new regime expected to be fully operational by October 2027. This evolving regulatory landscape is a key factor in the UKGC’s deliberations.
The Commission has tasked its Industry Forum with mapping out a viable path for integrating crypto payments while upholding its core licensing objectives, including robust anti-money laundering (AML) controls and stringent consumer protection measures.
Challenges and Considerations
While the potential benefits are clear, the UKGC acknowledges significant hurdles. Miller emphasized that the Commission will focus on “exploring the art of the possible” rather than dismissing innovation outright. Key challenges include ensuring operators can effectively conduct customer suitability checks and comply with AML regulations when dealing with the pseudonymous nature of cryptocurrency transactions.
Importantly, the UKGC has made it clear that accepting crypto payments will not lower the bar for licensing. Operators will still be required to meet existing strict standards related to compliance and “realize your customer” (KYC) procedures, in addition to the forthcoming FCA requirements.
A Broader Strategy Against the Illegal Market
This move is part of a larger strategy by the UKGC to crack down on illegal gambling operators. The Commission has increased enforcement activity and secured additional funding to strengthen its efforts. By offering a legal alternative for crypto-based betting, the UKGC hopes to reduce the appeal of offshore, unlicensed sites.
The Commission’s approach reflects a growing recognition that simply prohibiting certain technologies isn’t always effective. Instead, regulators are increasingly looking for ways to manage risks and harness innovation to protect consumers and maintain the integrity of the market.
FAQ
Q: Will all UK online casinos be able to accept crypto immediately?
A: No. The UKGC is still exploring the feasibility and regulatory framework for crypto payments. It will require careful consideration, and implementation.
Q: Does this mean the UKGC is endorsing crypto?
A: Not necessarily. The UKGC is exploring whether allowing regulated operators to offer crypto payments can facilitate protect consumers and combat the illegal market.
Q: What are the main concerns about crypto and gambling?
A: Concerns include money laundering, consumer protection, and the difficulty of verifying the source of funds.
Q: When will the new FCA crypto regulations come into effect?
A: The new regulatory regime is expected to take effect in October 2027.
Did you know? The UK Gambling Commission is also currently implementing changes stemming from the 2023 Gambling Act review, adding another layer of change for the industry.
Pro Tip: Stay informed about the evolving regulatory landscape for crypto and gambling. Changes are happening rapidly, and understanding the rules is crucial for both operators and players.
Want to learn more about the UK Gambling Commission’s efforts to protect consumers and regulate the industry? Visit their website.
