Gambling Commission warns of rising crypto gambling risks

The Gambling Commission’s Chief Executive, Andrew Rhodes, has issued a stern warning that the rapid growth of cryptocurrency gambling poses a looming challenge for regulators, urging the UK government not to ignore the escalating risks. Speaking at the “CEO Briefing 2025”, Rhodes highlighted that the emergence of crypto-based betting could outpace current regulatory frameworks far sooner than previously anticipated.

Regulatory challenges approaching faster than expected

In his speech, Rhodes admitted that the pace at which crypto gambling is evolving has surprised even experienced regulators. “That is a challenge that probably didn’t really exist a few years ago, or not at this level,” he said. “What I thought was a five-year-away problem, perhaps a year or two ago, I think is now an 18-months-to-two-years challenge.”

The Commission chief stressed that the convergence of digital currencies and online gambling could bring significant complexities. With the rise of blockchain technology and anonymous financial transactions, regulators are being forced to reconsider traditional compliance mechanisms, particularly those surrounding identity verification, money laundering, and consumer protection.

Growing popularity of crypto among younger generations

Rhodes highlighted that younger demographics are increasingly adopting cryptocurrencies as part of their daily financial behaviour. This shift, he said, creates “pressure building” within the gambling ecosystem. He warned that as digital assets like Bitcoin and Ethereum become commonplace among younger consumers, regulators must anticipate a future where a “significant cohort” of the population relies primarily on these currencies.

In such a landscape, Rhodes said, there is a risk that these individuals “have no place in legitimate industry because of the currency they use.” The implication, he added, is that legitimate operators may lose a portion of potential customers to unregulated or offshore platforms that freely accept crypto payments.

Calls for early government intervention

While Rhodes did not advocate for immediate licensing of crypto-based gambling, he urged that the issue must be addressed at a governmental level. According to him, it is the role of Parliament to determine whether and how crypto gambling can be regulated within the UK’s legislative framework.

“This is going to have to be government-level discussion,” he explained. “It is a government-level decision because once you open that door, you cannot close it.”

Rhodes posed a series of questions that highlight the complexity of such regulation: “It brings questions around are you considering crypto as a source of wealth? Are you considering that as a source of funds? What conditions would you put in place? What are the risks and how do we manage that?”

He added that with the Financial Conduct Authority (FCA) already examining how to design a framework for cryptocurrency oversight, it was “good to see” cross-agency collaboration emerging. Still, he maintained that the government could no longer “ignore that pattern,” especially as crypto use continues to grow.

Concerns over the Gambling Commission’s funding

Alongside his comments on crypto gambling, Rhodes also drew attention to financial concerns facing the Gambling Commission itself. The Commission, which regulates gambling activities across the UK, operates entirely on industry fees rather than taxpayer funding. However, the CEO warned that these fees are not adjusted for inflation or tied to current economic realities.

The Commission’s next fees review, originally due in 2024, was postponed to the end of 2025 following delays associated with the government’s comprehensive White Paper on Gambling Reform. Rhodes cautioned that without an updated fee structure, the Commission could face financial strain, potentially exhausting its reserves by mid-2026.

“This does mean the extra investments we have made in areas like illegal gambling, criminal investigations and data capabilities, among other areas, are not funded beyond the middle of next year,” Rhodes explained. “They have been funded from our excess reserves built up in 2021-22, which will now be exhausted.”

Impact of funding delays on regulatory enforcement

Rhodes made clear that the delay in reviewing the Commission’s financial arrangements could hinder its ability to perform its core duties effectively. The Commission’s remit includes enforcing compliance, investigating illegal operators, and promoting responsible gambling.

“Just as there is a very active debate about taxation and the sector at the moment, there is also a very active debate about the role of regulators and ‘arm’s length bodies’ and to what extent we stand between you and growth and to what extent we ensure a level playing field,” Rhodes said.

He stressed that these questions would likely shape government deliberations on the Commission’s future programme. In the meantime, he confirmed that the Commission’s 2025 strategy would focus on continuing current initiatives “as much as we possibly can,” while awaiting the outcome of the pending fees review.

Ongoing fight against illegal and unlicensed gambling

Despite its financial challenges, Rhodes praised the Commission’s proactive stance in combating illegal gambling. Over the past year, the regulator has intensified its efforts to dismantle unlicensed operations and restrict their visibility within the UK.

In the current financial year, the Gambling Commission has issued 480 cease-and-desist notices to advertisers and operators breaching regulations. It has also reported 188,297 URLs linked to illegal gambling to search engines, leading to the removal of over 104,000 of these links.

Additionally, 659 websites were referred for delisting, and 504 sites were disrupted—either taken offline or geo-blocked from UK users. Rhodes emphasised that these achievements demonstrate the Commission’s commitment to protecting consumers from unregulated gambling harm.

“We’ve been extremely active in this space and in talking to a huge number of regulators around the world we haven’t found any that have invested in the way that we have,” Rhodes said.

He also issued a measured reminder to critics: “Nonetheless, for the avoidance of doubt, because every time I give a speech, there are people who will pore over it and feel the need to tweet about it, we have been extremely active in this space. But we know we don’t have coverage of all the risks that are out there.”

A shifting regulatory landscape

The CEO’s remarks reflect broader uncertainty about the future of gambling regulation in the UK. With the White Paper still being implemented, the sector faces potential changes to advertising rules, affordability checks, and technological innovation oversight.

The inclusion of cryptocurrency in the conversation signals an evolution in the Commission’s focus—from traditional betting regulation to a more technologically adaptive model. However, Rhodes acknowledged that regulatory progress depends largely on political will and legislative clarity.

Experts across the sector have echoed his concerns, noting that the absence of crypto-specific gambling laws leaves both players and legitimate operators in a vulnerable position. Without a clear framework, consumers may turn to offshore websites where safeguards such as identity checks and problem gambling interventions are absent.

The importance of international cooperation

Rhodes also emphasised the importance of international collaboration in addressing cross-border gambling risks. Because crypto transactions often transcend national boundaries, regulators must coordinate to prevent loopholes that allow unlicensed operators to target British consumers from abroad.

He cited the Commission’s ongoing discussions with foreign regulators as evidence of its commitment to building a global standard for digital gambling oversight. The goal, he said, is to ensure that players enjoy consistent levels of protection, regardless of the payment method or technology involved.

Future direction and strategic priorities

Looking ahead, Rhodes reaffirmed that the Gambling Commission will continue to focus on three main priorities: tackling illegal gambling, modernising data systems, and ensuring fair and transparent industry practices.

He reiterated that the Commission’s independence remains vital, even as funding challenges loom. By maintaining a balance between consumer protection and industry growth, Rhodes said, the regulator aims to safeguard public trust while enabling responsible innovation.

The growing prominence of crypto gambling, however, remains the most urgent frontier. Whether through legislative reform, technological partnerships, or enhanced enforcement, Rhodes believes the UK must act decisively to prevent crypto-driven gambling from becoming an unmanageable issue.

Conclusion

Andrew Rhodes’ remarks at the CEO Briefing 2025 underscore the urgency of preparing for a future where cryptocurrency plays an integral role in online gambling. His warning is both a reflection of the industry’s rapid digital transformation and a call to action for policymakers to address emerging risks before they become entrenched. The rise of crypto gambling is not merely a technological shift—it represents a fundamental change in consumer behaviour, regulatory oversight, and financial accountability.

As younger generations increasingly adopt digital currencies, the Gambling Commission faces a dual challenge: ensuring robust consumer protection while adapting to a financial ecosystem that operates beyond traditional frameworks. Rhodes’ insistence that this issue must be handled at a governmental level highlights the complexity and gravity of the matter. Decisions made in the next 18 to 24 months will likely shape how the UK regulates digital wagering for decades to come.

At the same time, the Commission’s own financial sustainability poses an additional concern. Without sufficient funding, its capacity to monitor illegal gambling, enforce compliance, and implement data-driven oversight could be compromised. Rhodes’ comments serve as a reminder that effective regulation requires not only clear legislation but also the resources to enforce it.

Ultimately, the speech reflects a regulator at a crossroads—committed to innovation but mindful of the risks that accompany it. The Gambling Commission’s proactive stance against illegal operators, combined with its cautious approach to crypto regulation, demonstrates a desire to balance progress with protection. Yet, as Rhodes made clear, the clock is ticking. For the UK to maintain its global leadership in responsible gambling, both the government and the industry must act decisively, collaboratively, and transparently in confronting the challenges posed by the next generation of digital gambling.

FAQs

What did Andrew Rhodes warn about regarding crypto gambling?
He warned that crypto gambling could become a major regulatory challenge within 18 to 24 months, urging government action before it grows uncontrollably.

Why is the Gambling Commission concerned about cryptocurrencies?
Because cryptocurrencies are becoming popular among younger people, creating new risks related to unregulated gambling, money laundering, and consumer protection.

Is the Gambling Commission planning to license crypto gambling?
No, Andrew Rhodes said the Commission will not issue licences for crypto gambling until the government first decides how such activity should be regulated.

What role does the government play in crypto gambling regulation?
The government must establish legal frameworks and decide whether crypto should be recognised as a valid source of wealth or funds within regulated gambling.

Why is the Gambling Commission facing funding concerns?
Its income comes from operator fees, which are not indexed to inflation. Without a fee review, its funds may run out by mid-2026.

When is the next fees review expected?
The next fees review was postponed to the end of 2025, following delays related to the government’s gambling White Paper.

What actions has the Commission taken against illegal gambling?
It issued 480 cease-and-desist orders, reported nearly 190,000 illegal URLs, and disrupted over 500 unlicensed websites.

Does the Commission collaborate internationally?
Yes, it works with global regulators to share intelligence and develop coordinated approaches to illegal and crypto-based gambling.

What is the Financial Conduct Authority’s role in this issue?
The FCA is examining how a regulatory framework could be developed for cryptocurrencies, including their use in gambling.

What are the Commission’s priorities for the coming year?
It aims to strengthen enforcement against illegal operators, modernise data capabilities, and ensure fair and responsible industry practices.