Nowhere in the world you have a bigger competition than in the gambling market of the United Kingdom. While in countries such as Czech Republic and Slovakia you have a competition of around 5 online casinos, in the UK there are literally thousands. Sure, the market and wealth is much bigger, but is it that big? As reported by the British casino website Spincastle, the competition is not as high as it seems on the first impression.
What is going on in the gambling market of the UK
Let’s say you are about to apply for an online casino licence in the UK. After a few weeks you got it and now you are about to swim in a big ocean full of competitors. How do you increase your chances? The answer is simple – you buy a few more domains, slightly change the design and make the casino look different. This brings a huge advantage – just count with me. If you had e.g. 4000 domains to compete with, the chance is 1:4000, but if you had 2 domains, your coverage and chances double to 2:4000.
This is indeed a trap. Since everybody is doing it, you are forced to do it as well. If nobody did it, you wouldn’t have to either. Now there are British gambling operators running over 10 casino domains and enjoying the fiction of being ahead. Well… they are until the competition buys more domains.
But what about the costs?
This is the elegant part of multiple domains business. Since you are changing only the skin of a website, the costs are insignificant. You only pay initial cost for the design not higher than a couple hundreds or thousands and yearly domain fee. The customer service, payments and even payments remain the same. When it comes to additional licensing fees, we are not aware of any other than the small processing fee from the UK Gambling Commission (UKGC). With this in mind, the UK was one of the most lucrative countries for running a gambling business. “Was”? Well, yes! UKGC is recently doing a so-called witch hunt. This means that besides the competition, you are also doing lots of stuff asked by the regulator.
We are not denying that a player’s protection and anti money laundering are of a huge importance, but the UKGC goes further. Free to play casino games have been banned, Credit card payments have been banned and much more. All this while admitting that the steps have almost no impact at all. Almost every week we read news about some multi million fine “awarded” to some gambling operator for breaking the strict anti money laundering rules and player’s protection such as self exclusion. Besides all this there is lots of bureaucracy and that should be ended.