Is GamStop Enough to Curb Harmful Online Gambling Habits?

With the growth of online gambling platforms, access to gambling activities, some of which may be harmful, has become increasingly easy. To help address these risks, initiatives like GamStop have been implemented in the United Kingdom. However, some have questioned the effectiveness of GamStop and other similar programs, as some offshore gambling websites seem to tailor their content specifically to skirt around GamStop.

Offshore Gambling Sites Try to Circumvent GamStop

GamStop was introduced in 2018 to allow players to self-exclude from all gambling websites licensed in Great Britain. However, many UK players believe such a measure was unnecessary, leading an increasing number of them to seek out non-GamStop casinos that continue to accept UK players.

As GamStop has expanded, a troubling pattern has emerged involving affiliate websites that focus on directing users to so-called “best” online casinos and bookmakers operating outside the scheme. These affiliate sites typically earn revenue either through a share of profits or a one-time payment for each user they refer to such platforms.

Because they are licensed in offshore jurisdictions (such as Curaçao) rather than the UK, these websites are not registered with GamStop and appear to be offering their services unlawfully. As a result, they face minimal regulatory consequences, even when accepting bets from vulnerable individuals or those with gambling addictions.

According to Yield Sec, a data analytics firm that investigates offshore gambling operations, more than 84% of illegal gambling content in the UK originates from non-GamStop sources. This has contributed to a sharp rise in the illicit market’s revenue from UK players, increasing from GBP 122 million (about $163 million) in 2022 to GBP 583 million ($780 million) last year. Yield Sec founder Ismail Vali suggests that the popularity of the “Not on GamStop” search term may indicate that some companies are deliberately targeting individuals who are more likely to struggle with gambling problems.

Some Critique GameStop Itself

Like any system, GamStop comes with both advantages and limitations. One of its key strengths is that it provides a straightforward and accessible way for individuals to self-exclude from online gambling platforms or reduce the amount of time they spend gambling. The scheme operates through a centralized database that allows licensed operators to identify self-excluded users and block their access accordingly.

However, despite its well-intentioned goals, GamStop has drawn criticism from a range of stakeholders. A frequent concern is that it does not adequately address underlying issues related to problem gambling. Furthermore, critics argue that responsibility for encouraging safer gambling should not fall solely on individuals. Gambling operators themselves should play a greater role by enforcing stronger preventative measures and offering meaningful support to those who may be at risk.

Despite the critiques, a few months ago, in its annual report, GamStop representatives highlighted the growth of the program, which showed that over half a million people have registered with the service to help keep their online gambling habits under control.

What Alternative Methods for Curbing One’s Harmful Gambling Habits Are There?

While GamStop represents one method of promoting responsible gambling, other approaches can be used alongside it to improve overall effectiveness. One such measure is the introduction of more rigorous age-verification systems to help prevent underage gambling. Another strategy involves personalized responsible gambling tools that track individual behavior and provide tailored insights, support, and guidance when needed. These tools can empower users to make more informed choices and encourage healthier gambling habits.

Some have said that increasing the tax on gambling companies may also have a positive effect on problem gambling. Such a tax hike was proposed in the UK’s autumn budget recently. However, UK gambling industry experts warned against the tax increase, arguing that it could push gamblers to use offshore platforms.

The representatives argued that legitimate bookmakers would be forced to reduce costs by scaling back marketing efforts and cutting the promotional bonuses that many players are drawn to. In contrast, offshore unregulated operators would be well-positioned to absorb this displaced demand.

That being said, at least for now, the rise of the “Not on GamStop” trend seems to be driven by factors other than taxation. Yield Sec’s founder, Ismail Vali, who is also president of Gaming Compliance International, called for greater accountability from platforms where non-GamStop sites are promoted, such as Google search results and Facebook, for enabling the growth of what he describes as an online “ghetto.”

At the end of the day, it seems that there is not one singular answer to curbing harmful online gambling habits, and the responsibility to do so lies in gambling companies, government regulators, and the individual gamblers themselves.