Regulated, but not trusted: The gambling industry’s social licence problem

In August, UK prime minister Andy Burnham riled much of the gambling industry with a social media post where he included “betting shops” alongside “vape shops” when talking about “dodgy businesses“.

Unfortunately for those that work within the industry, Burnham’s perception of it is one that many outside it would agree with.

As strategic advisor to 1xBet, and, as of July, director of 1xCare and chairperson of its advisory board committee, Simon Westbury has an interesting point of view when asked for his reaction to Burnham’s comment.

 “It’s an example of the industry losing their social licence and their ability to operate in an environment. It’s also a case of ‘don’t let the facts get in the way of a good story’.

“It really comes down to perception. You have a leader of a country saying this is intrinsically bad or grouping it with questionable industries. What he’s saying isn’t supported by evidence, but… does it resonate with people? Yes, it does.”

As 1xBet doesn’t operate in the UK, he admits he’s speaking from “an outsider’s point of view.” But with 18 years in the industry, including senior roles at companies such as BetSoft and Digitain, and a stint as administration manager at football club Sheffield United, Westbury is well placed to discuss managing perceptions of an industry with optics issues.

Why ‘we’re regulated’ isn’t enough

As reported by iGB at the time, betting shops on the UK high street are in decline, in contrast to the narrative of uncontrolled growth that Burnham and others are buying into. But this perception goes beyond the UK and beyond land-based bookmakers – the entire industry faces a stigma, with 1xBet used to more scrutiny than most.

Commenting on the reaction to Burnham’s post, Westbury says: “Some of the industry threw their arms up in the air and said, ‘But we’re regulated, vape shops are not’. But just saying you’re regulated doesn’t change the perception and doesn’t move the discussion forward to a point where we may change this or actually start challenging some of the polarised views that exist.”

“There’s been a real focus on instantaneity, pushing the envelope, finding loopholes, finding ways to operate”

While unlicensed in the UK, Westbury points out that 1xBet has over 35 local licences with some major additions in the pipeline too. He explains: “Everyone believes in regulation. Everyone understands regulation is needed, but it may not be perceived as beneficial if the offshore market is growing.”

This is where the idea of social licence comes in. Not an official piece of legislation, but simply acceptance from the wider community, which is crucial for an industry’s credibility and trust.

“Every industry operates or engages with its customers within the ability of a social licence,” Westbury points out.

When asked what needs to change for the industry’s perception to shift, Westbury answers: “We need to re-engage and gain back our social licence to operate. We need to put players at the front and centre of everything that we do.”

Why is the industry seen the way it is?

Westbury’s point about short-termism is a fair observation: welcome bonuses with unrealistic wagering requirements have long lured in new customers expecting unrealistic returns.

“There’s a very strong anti-gambling lobby,” Westbury states. “From an industry perspective, there’s been a real focus on instantaneity, pushing the envelope, finding loopholes, finding ways to operate.”

When it comes to the anti-gambling political climate which has seen a total online gambling ban in Brazil and strict advertising rules across European nations such as Italy, the Netherlands and Spain, Westbury says research is no different: “It’s very polarised… You’re either very pro-gambling or very anti-gambling.

“I’m trying to find research that will actually be beneficial and not pushing a point. Without wishing to sound like Tony Blair, and anyone who knows me knows I wouldn’t want to sound like Tony Blair, I don’t just want to say ‘we’ve got to converge on the middle ground’. I’m trying to find something different – something meaningful and something impactful. That will take time.”

Compliance issues and the offshore market

With 1xCare, Simon has previewed unpublished research which found that 55% of participating operators thought compliance was more important than player protection. “I think that’s concerning,” he says.

“Everything is about compliance and maintaining your licence… We need to actually start ingraining player protection and safer gambling tools from conception to delivery. As an operator, we have a platform and those tools are built into it, but we also buy from suppliers.

“How does this fit in with suppliers when they’re developing a new slot game? Are they ingraining [responsible gambling measures] into the development of the product, or are they developing it, then re-certifying it and adapting it to the regulations? Every market and every individual is different, and it’s very difficult to develop a product that’s global.”

Westbury also believes that regulators sometimes indulge in performative compliance. He explains: “We see a lot of regulators doing the annual report saying they’ve audited this many operators, they found this many problems, but that’s performative to me.”

With the offshore market growing, Westbury’s viewpoint comes with relevant context. 1xBet has spent much of this year expanding its presence in regulated markets, while maintaining a broader international footprint. This is worth bearing in mind when considering his comments on the regulated and offshore sectors.

“Gambling’s been around longer than money, we have to remember that. People will find a way”

He says: “If regulators and governments are doing such a wonderful job at regulation, why is the offshore ‘dot-com’ market growing? Should there not be a base KPI around ‘if the offshore market is growing, there’s a problem’, and ‘if it’s shrinking, then we’re going in the right direction’? At the moment, everything seems to be polarised, and people are pointing fingers.

“Some people on the regulator side view gambling as inherently bad.

“I’m not saying it’s good or bad…But ultimately, has prohibition ever worked? If you look at prohibition of alcohol in the States, what did happen? The mob made a load of money, and it came back…

“Gambling’s been around longer than money, we have to remember that. People will find a way.”

This is a point that crops up when talking to senior industry figures repeatedly – prohibition fails; therefore, successful regulation is the best way forward. But with the external perception that even regulated gambling is bad, it’s not so straightforward to successfully regulate.

What does Westbury suggest? “For me, there needs to be commitment,” he explains. “Maybe not KPIs but commitments from suppliers, operators, regulators and governments to be formed in an open conversation based not on finger-pointing, not saying ‘you’re right’ or ‘you’re wrong’, but actually sitting down and understanding there needs to be some give and take from both sides to find a position that creates a jurisdictional environment that promotes players playing within it.

“People vote with their feet, and if you do not provide that environment, people find a way. It’s human nature.”

He adds: “It’s in everyone’s interest if that is within the regulated market. Even those who find gambling absolutely abhorrent, surely they would want people in a safe and regulated environment rather than outside of that?”

Where 1xCare fits into this landscape

Setting out as “a new organisation dedicated to advancing responsible gambling and player protection,” 1xCare is an intriguing proposition. An NGO, it has an independent advisory board consisting of Italian gambling law specialist Quirino Mancini, former Manchester City FC COO Chris Bird and ex-Allwyn director of compliance Sissel Weitzhandler alongside Westbury.

Asked if it’s just a case of 1xBet marking its own homework, Westbury welcomes the question and responds: “If it was, we wouldn’t have set up a separate body, separated the funding, separated an independent advisory committee, and be looking to fund projects that are outside of the 1XBet universe.”

Having said that, one of the first 1xCare projects after it was launched in July was to deploy Bird to do some media training for grassroots football club media officers at the 1xBet-run 1xCup. Founded in 2023, it’s the biggest amateur sports tournament in Nigeria – one of the largest nations where 1xBet is licensed.

The strategic advisor admits that 1xCare would be foolish not to make the most of the relationships 1xBet has with sports clubs and governing bodies. “If we can leverage that in the short term and do a separate agreement between 1xCare, and that club or industry body, then of course we will look to do that. You don’t want to cut your nose off to spite your face.”

Westbury is excited by the first few months of this project. He says: “The response has been very good, with over 20 funding proposals already given to us”.

So what will 1xCare achieve in its first year of existence? Westbury says that the accounts will be published, so it will be transparent where the money from 1xCare goes. “We aren’t going to be judged on a press release,” Westbury continues. “We don’t have a share price… We’re going to be judged on what we deliver.”

And when he says ‘we’, he very much includes himself in that. “I’m not trying to elevate myself within the industry, but I wouldn’t put my name to a gesture. I’d put my name to something I’m committed to and believe in.

“I need to deliver, because if I don’t deliver, there’s going to be a lot of finger-pointing.”

While he is hoping for some patience, Westbury states that “at the end of 12 months, I would expect to have funded a number of projects around the four pillars of education, research, technology and wellbeing.

“Over time, we’re going to build trust. That comes through demonstration, and if I demonstrably show independence and make a positive impact across the four pillars to benefit public interest, then I don’t think [sceptics could argue with that. Although] you’re not going to win everybody over… I have learned to accept there will always be sceptics.”

What would actually change the perception from outside the industry?

For Westbury, the environment needed for responsible gambling and projects like 1xCare to move in the right direction requires collaboration. He says: “Everyone needs to stop sitting in their silos pointing fingers at each other. We need to come together, engage and speak.”

He wants commitment from suppliers, operators, governments and regulators, coming in with “an open mind to find a way.”

Westbury continues: “I’m not trying to make an argument for once in my life. I’m trying to have a discussion. We have to admit we’re all part of one ecosystem. Whether we like it or not, people are always going to group us together. If you’re a high street bookie, a casino or an online operator – we’re part of one ecosystem.

“There’s job losses in this industry… let’s sit down and discuss it and not just pull up the drawbridge… Let’s not build barriers between us.”

He believes that if the conversation begins collaboratively within the industry, it could potentially “be expanded to society as a whole.”

As he puts it: “If you’re not actually going as a united front, that’s when cracks appear, and water can seep through, as we know.”