“We know that licensed operators and their trade bodies are concerned about the impact of the illegal market, but our own evidence suggests that the impact may be being exaggerated,” he said.
McArthur said black market concerns should be kept in proportion “despite … reports from consultants paid for by the industry, and should not distract from the need to continue to drive up standards and make gambling safer in the regulated market”.
Such direct criticism from the regulator will be a blow for the industry lobby group, the Betting and Gaming Council (BGC), which has repeatedly referred to the report to back its arguments against stricter regulations.
The government is considering a range of measures that could involve limiting stakes on online virtual slot machines, or forcing web-based casinos to carry out thorough affordability checks if customers deposit a certain amount per month.
McArthur dismissed the BGC’s suggestion that such measures could fuel a surge in black market operations.
“In any event, we are not convinced by the argument that suggests that raising standards in the licensed market will prompt consumers to gamble with illegal operators,” he said.