In a recent briefing, Andrew Rhodes, the UKGC’s CEO, warned that difficulties with regulating cryptocurrency gambling may arise sooner than expected. He noted that the topic was barely discussed a few years ago, but the first serious issues can be expected within 1.5 to 2 years.
Decentralised Games as an Industry Challenge: Reasons
The executive stated that the rapid growth of young players' interest in blockchain-based assets is increasing pressure on traditional financial mechanisms. The advantages of alternative casino payment systems are quickly gaining acceptance. As cryptocurrencies become more widespread, they are beginning to compete with fiat transactions.
According to Mr Rhodes, the introduction of decentralised tokens into the gambling sector could trigger a significant demographic shift. Users who prefer digital coins may gradually move away from bank transfers. This situation will lead to a redistribution of traffic and a change in traditional financial channels. All indications suggest that Bitcoin casino solutions are gaining traction in the UK market.
Strategic Plans of the British Commission
Despite the concerns voiced, the CEO clarified that the country’s regulator does not currently intend to make fundamental changes to its licensing system or issue permits to crypto operators.
Nevertheless, he believes that:
- The government should initiate the oversight of decentralised currencies.
- The Commission’s role will remain unchanged — to monitor and ensure compliance.
- The first discussions of this issue must begin at the highest state level.
The UKGC has no authority to take such a large-scale step as opening up the crypto market. The nation is currently experiencing rapid growth in the demographic group preferring decentralised payments, and the expert is certain that Parliament should not ignore this trend.
The British Financial Conduct Authority has already initiated a large-scale study. Its findings will help shape the foundations of the future legal regime for blockchain games.
How Funding Affects the UKGC’s Performance
Mr Rhodes also touched on other issues the regulator is set to face in the near future. These include the Commission’s budget and the need to review outdated fees.
The agency now receives solely business levies, without taxpayer proceeds. Nevertheless, such charges are not linked to inflation or other economic indicators, meaning the previously approved amounts no longer reflect current expenditure.
The funding program is typically reviewed every 5 to 7 years. The next hearing was initially scheduled for 2024 but was then postponed until the end of 2025. The executive estimates that the UKGC’s current resources will be completely exhausted by the middle of next year.
The challenges mean that the following programs could be suspended in H2 2026:
- combating illegal markets;
- expanding data collecting and analysing capabilities;
- conducting criminal investigations against unlicensed operators, among others.
The mentioned projects were financed from reserves created back in 2021−2022. The body’s current goal is to ensure the continuation of these processes for as long as possible.
Regulator’s Practical Measures to Strengthen Control
Mr Rhodes noted that the agency’s efforts are now focused on combating uncertified activity in the gambling sector, including blocking illicit platforms.
During the 2025 FY, the Commission have accomplished a significant amount of work:
- sent 480 cease-and-desist notices to operators and advertisers;
- reported 188,297 URLs to various search engines, of which 104,192 were removed;
- disrupted 504 portals, which were removed or blocked at the identified GEO in the UK.
The CEO emphasised that the institution is striving to ensure security and compliance. Among regulators worldwide, there is no single authority that invests in combating the shadow sector at the level of the UKGC. Its team is extremely involved in this process, but even with such a comprehensive contribution, it is still impossible to foresee all potential risks.
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