Winning Hearts and Minds

In recent years, governments worldwide have increased scrutiny on the gambling industry, driven by genuine concerns about addiction, underage access, ethical marketing, and the overall social impact of betting. The response has often been tighter regulation, increased taxes, and stricter advertising rules. While these efforts aim to protect consumers and society, they carry a hidden risk: overregulation that threatens the very viability of the legal gambling market.

Successive layers of regulation and a ratcheting up of taxes mean the regulated gambling sector is now at a critical juncture. Survive and thrive it must – but that requires far more than compliance. It demands winning hearts and minds through trust, transparency, responsible innovation, and proactive engagement with regulators and the public. Only by doing so can the industry operate in a sustainable, competitive market that benefits operators, governments, and consumers alike.

The double-edged sword of regulation

Regulation is both essential and inevitable. No one disputes the need to shield vulnerable players, uphold fair play, and promote responsible gambling. But when regulation becomes overly rigid, inconsistent, or unpredictable, it risks undermining its own objectives.

Tighter rules directly impact business viability. Excessive tax rates diminish the margins needed for product development and consumer safeguards. Strict advertising restrictions shrink brand visibility, hurting new and smaller operators who rely on marketing to reach customers. Complex compliance requirements increase operational costs, especially for local companies with limited resources.

Worse still, rapid and sweeping regulatory changes can destabilize entire markets. We can consider Romania’s 2025 regulatory overhaul as an example. Authorities abruptly raised license fees, banned many forms of advertising, and introduced new technical compliance demands with minimal to no transition time. The fallout anticipated from these developments will see international operators exit the market, investments freeze, and local affiliates face sudden uncertainty.

Even where new regulations are not so punitive, the lack of predictability creates a chilling effect. When companies cannot anticipate rules or are forced to constantly adapt, their willingness to invest and innovate plummets.

Flipping the coin: when overregulation backfires

When regulatory pressure mounts excessively, the gambling industry may “flip the coin” and withdraw from certain jurisdictions or scale back local investments. This shift can reduce the quality, appeal, and diversity of gambling offerings. Operators may reduce spending on new technology or cut back on innovation, impacting the overall health of the market.

Reduced competition leads to less choice and often higher prices for consumers. It also raises barriers for new entrants, stifling dynamism. In extreme cases, monopolies or oligopolies may emerge, further weakening fair competition.

Moreover, when consumers seek alternatives in the illegal market, governments lose vital tax revenues and consumer protections evaporate. Ironically, this undermines the very aims of tighter regulations. Unlicensed platforms offer fewer protections, no age verification, and zero tax contributions – precisely the conditions regulators are seeking to avoid.

How have we ended up in this position? The arguments above are well known and even the most blinkered of regulators recognizes that there will come a point where diminishing returns set in and the gravitational pull of the Laffer Curve inevitably means the tax take and consumer protections are sacrificed. And yet, the regulated gambling industry is popularly portrayed as parasitic by the media and an easy target for cash-strapped governments.

Reframing the industry as a force for good

To counter negative perceptions, the gambling industry must redefine its public image and demonstrate its positive contributions, such as:

• Economic impact – the gambling sector supports hundreds of thousands of jobs, from operators and developers to retail employees and affiliates. It generates billions in tax revenues that go to fund public services and local communities. For example, in the UK, the regulated gambling industry contributed over £4 billion in taxes in 2023, sustaining vital public programs.
• Cultural and social contributions – betting is deeply embedded in many societies’ sporting and cultural fabric, from horseracing and football to darts and esports. Many sports rely heavily on gambling sponsorship, which provides essential funding and exposure. Far from being a niche activity, regulated gambling provides social entertainment to millions safely and responsibly.
• Technological innovation – the sector is at the forefront of digital innovation, employing AI to power sohpisticated player protection tools, advancing secure payment systems, and pioneering real-time monitoring to identify harmful behavior. These technologies often have positive spillovers beyond gambling, including fraud detection and digital identity verification.

Taking responsibility: addressing core challenges

Winning the trust of players, regulators, and the public requires the gambling industry to confront its challenges honestly and proactively. Much of the responsibility lies with operators but cannot rest solely on their shoulders.

Firstly, operators must invest in affordability checks, self-exclusion programs, and real-time harm detection tools to enable the early identification and support of at-risk players.

Secondly, transparency is vital. Gambling companies should avoid misleading promotions, clearly communicate terms, and restrict marketing aimed at vulnerable groups.

Thirdly, robust age verification systems must be implemented and enforced through collaboration with online platforms, retailers, and regulators.

However, responsibility extends beyond operators. Governments and regulators should ensure that the funds raised through the industry’s social responsibility contributions are directed transparently towards public benefit. This includes creating and supporting public platforms, education programs, and treatment services aimed at prevention and harm reduction.

By sharing responsibility between industry and public bodies, the sector can build genuine goodwill, enhance effectiveness, and reduce the appeal and need for heavy-handed top-down regulation.

The importance of regulatory predictability

Governments should avoid sudden, sweeping changes that disrupt markets overnight. Predictable, phased regulation allows operators to adapt and innovate responsibly. Conversely their appetite to invest in a particular jurisdiction, or worse to remain / leave is directly impacted by knee jerk responses to public or political pressures.

Another crucial aspect is regulatory coherence. When multiple state authorities enforce overlapping or conflicting rules (such as different ministries, tax authorities, local councils, and advertising watchdogs) businesses face costly compliance burdens and confusion.

This fragmentation erodes the value of national licenses, which are intended to guarantee legal certainty and market access. If too many authorities impose independent controls, operators may doubt the value of a license, weakening market stability. Paradoxically, it also weakens the control authorities have to influence the industry as too many operators fall outside its regulatory strictures.

Governments must look at the gambling industry from all angles – economic, social, technological – but through a single, central regulatory lens. This ensures consistent enforcement, clarity, and trust.

Smart advocacy: engaging constructively

Lobbying alone isn’t enough. To secure long-term sustainability, the gambling industry must build broad-based alliances and engage constructively with a wide range of stakeholders.

This includes collaboration with NGOs, academics, and healthcare professionals to fund independent research, improve harm reduction programs, and co-author responsible gambling standards. Such partnerships not only improve outcomes but also lend credibility to the industry’s efforts.

Supporting industry-wide self-regulation (through national or regional bodies) signals a willingness to be held accountable. It also creates a level playing field and reduces the need for aggressive, fragmented enforcement from multiple regulators.

Equally important is the way in which the industry engages with the public through the media. Too often, gambling is portrayed with a blinkered view of scandal, addiction, and regulatory breaches. While these issues merit attention, they do not reflect the entire landscape. The industry must step out of its comfort zone and engage proactively with journalists and editors to encourage more balanced, accurate, and informed reporting.

This means offering transparency, opening up access to internal experts and data, and showcasing meaningful case studies, such as technological innovations in harm prevention or successful community engagement initiatives. Hosting press briefings, publishing economic and social impact reports, and participating in public forums can help reshape the narrative.

By framing gambling within its broader economic, cultural, and technological context, the industry can encourage the media to reflect a more complete picture, highlighting both the risks and the value it delivers when well-regulated and responsibly managed.

This isn’t just about reputation management, it’s about building understanding and legitimacy in the eyes of the public, media, and policymakers alike. But that begins with introspection: the industry must first view itself through the same critical lens it expects from others, acknowledging both its challenges and its contributions.

A balanced future: collaboration for sustainability

Governments undeniably have the right (and duty) to regulate gambling. However, this regulation must strike a careful balance: protecting consumers while fostering innovation and preventing the migration of players to unregulated, underground markets.

When regulation is predictable, centralized, and proportionate, it creates a healthy, sustainable market. Operators gain the confidence to invest in safer, more engaging products and technologies. Meanwhile, governments secure vital tax revenues and uphold public safety through effective oversight.

Rather than focusing enforcement pressure solely on licensees – the “stick” often used to ensure compliance – regulators should collaborate closely with law enforcement and other relevant authorities to direct resources where they are most needed. This approach will ensure that compliance efforts target bad actors and unlicensed operators, putting the regulatory “stick” to good use to protect consumers and preserve market integrity.

Another important step is the regular reassessment of regulator-maintained blacklists. Situations in which operators are simultaneously whitelisted in reputable jurisdictions and blacklisted elsewhere highlight inconsistencies that may undermine regulatory credibility and market integrity. Introducing a structured process of dialogue and review – taking into account remedial measures undertaken by operators, the relevance and status of self-exclusion periods, and the principles of proportionality and mutual recognition underpinning EU law – would promote greater coherence and fairness in enforcement practices.

Turning this page can open a new stream of government revenue, foster healthy competition, and increase the level of entertainment available to consumers within a safe and regulated environment. Furthermore, embracing a spirit of constructive dialogue and ongoing review helps to keep regulations relevant and adaptable in a fast-evolving industry. It signals to operators that regulators are partners rather than adversaries, encouraging compliance through cooperation rather than confrontation.

Such openness also drives innovation in player protection, fair marketing, and product quality, creating a positive cycle where consumer trust, market vitality, and regulatory goals strengthen one another, ultimately ensuring a sustainable and resilient future for the gambling industry.

Ultimately, winning hearts and minds goes far beyond public relations. It is the cornerstone for building a vibrant, responsible gambling sector – one that benefits players, businesses, regulators, and society as a whole.