Global Gambling Regulation: UK, Chile & US Face Changes

UK's High-Stakes Affordability Check Showdown

The United Kingdom's approach to gambling regulation is at a crossroads as the Gambling Commission prepares to decide on the rollout of its contentious affordability checks. Conservative peer Nick Herbert heavily criticized the plan in the House of Lords, labeling the policy "ill-targeted" and highlighting the "immense damage" already done to horseracing, with an estimated loss of £250 million over five years.

This sentiment is echoed across the industry. The Betting and Gaming Council (BGC) has confirmed it is considering legal action to prevent the implementation of the checks, arguing the proposals are not fit for purpose and risk pushing customers towards the unregulated black market. Critics, including Reform UK leader Nigel Farage, fear the checks are "killing traditional bookmakers" and driving activity underground.

Despite the backlash, the Commission has maintained that the enhanced Financial Risk Assessments (FRAs) would only be triggered for about 3% of active accounts. The decision, expected on May 21, is poised to be a landmark moment for the future of UK gambling.

International Regulatory Pressure Points

The UK is not alone in its regulatory challenges. Governments worldwide are grappling with the complexities of online betting, leading to diverse and often conflicting approaches.

Chile's Battle Against Illegal Operators

In Chile, the regulated market is shrinking under the pressure of a booming illegal online sector. The Asociación Chilena de Casinos y Juegos (ACCJ) reported in its 2025 summary that gross gaming revenue for land-based casinos fell by 4.5% to CLP509.8 billion. This decline was accompanied by a 4.7% drop in tax collection and a 7.2% decrease in casino visits.

In stark contrast, the illegal online market in Chile is estimated to be worth approximately $3.1 billion. The situation has prompted a Chilean Supreme Court ruling to mandate the blocking of illegal betting websites. Furthermore, a new study revealed a concerning trend in youth gambling, with 26% of young people placing online bets and the average starting age being just 15.5 years.

Indonesia's Zero-Tolerance Crackdown

Indonesian authorities are escalating their fight against illegal gambling, intensifying surveillance on foreign visitors after a raid in Jakarta uncovered a massive online gambling network involving 320 foreign nationals. All forms of gambling are strictly illegal in Indonesia, a policy backed by the 1974 Control of Gambling Law.

The government is taking firm action, with the Financial Services Authority having already blocked over 33,252 bank accounts linked to online gambling. Officials are concerned about criminal syndicates migrating from other Southeast Asian countries and exploiting events like the upcoming World Cup 2026 for illicit activities.

Minnesota Outlaws Prediction Markets

In the United States, Minnesota has become the first state to formally outlaw prediction markets. Governor Tim Walz signed a bill criminalizing platforms like Kalshi and Polymarket, with the law set to take effect on August 1, 2026. This move has ignited a legal battle with federal authorities.

The Commodity Futures Trading Commission (CFTC), which views these markets as financial products, filed a lawsuit to block the law. CFTC Chairman Michael S. Selig called Minnesota's action an aggressive move to "undermine the federal regulatory regime." State lawmakers, however, insist that gambling regulation is a state prerogative.

Corporate Strategy in a Turbulent Market

Amidst these regulatory shifts, major gaming companies are making significant strategic moves to navigate the evolving landscape and secure future growth.

Evolution's €2 Billion Share Buyback

Evolution AB has announced a massive €2 billion share buyback programme to optimize its capital structure and enhance shareholder value. The supplier also secured a €300 million revolving credit facility for liquidity. This major financial decision comes as the company faces legal scrutiny in New Jersey over allegations its games were available in restricted markets, a case that also involves competitor Playtech.

Playtech and OMNIPLAY Target New Horizons

Playtech reported an "excellent" start to 2026, with CEO Mor Weizer crediting strong momentum in the Americas, particularly the US and Mexico. This growth in regulated markets stands in contrast to challenges in the UK, where its Sun Bingo business is under review following a remote gaming duty hike from 21% to 40%. The company also announced that senior director Ian Penrose will step down from the board in spring 2027.

Meanwhile, Philippines-based content provider OMNIPLAY is executing a strategic expansion into Europe and North America. Building on its domestic success, the company is focusing on a phased approach with strong partnerships and localized content. OMNIPLAY plans to showcase its portfolio at the upcoming SiGMA Asia conference.

Market Dynamics and Industry Debates

The ongoing regulatory changes are fueling critical debates within the industry about sustainability and public perception.

The industry faces a credibility challenge. If the market keeps growing despite the tax hike, the government will simply conclude the industry was crying wolf.

In the UK, discussions are underway about whether operators will lower slot Return-to-Player (RTP) percentages to offset tax increases, a move experts believe would be detrimental to both players and operators. At the same time, the largely unregulated UK prize draw market has grown to an estimated £1.3 billion in annual spend, attracting 7.4 million players and raising new questions for regulators.

In Sweden, a mature regulated market provides a different perspective. The gambling authority, Spelinspektionen, reported a slight 0.8% rise in Q1 revenue to SEK 6.7bn. The growth in online gaming was just enough to offset the loss of revenue from the final closure of the land-based Casino Cosmopol.

Global Regulatory Snapshot