The future of gaming may be closer than regulators think.
At the IAGR 2025 conference, UKGC CEO Andrew Rhodes warned that the rise of crypto among younger consumers is already reshaping gaming. Regulators, he said, must now decide how to respond.
Crypto Adoption Brings New Challenges
Rhodes said what once seemed years away could become a regulatory test in the next couple of years.
Operators licensed in the UK are not allowed to offer cryptocurrency-based games. Yet, according to Rhodes, this practice is already widespread in the unregulated market. He noted that consumers under the age of 40 are increasingly using digital assets as payment and savings tools, creating a new generation with no authorized avenue for crypto gambling.
This trend, he warned, will put increasing pressure on governments and regulators to decide whether crypto should play a role in the legal framework for gambling.
Money laundering and traceability issues
The Commission remains cautious about how crypto might fit into the regulated ecosystem.
Rhodes highlighted the central problem: verifying the source of funds. Traceability of crypto transactions remains limited, increasing the risks of money laundering and terrorist financing. Demonstrating the origin of wealth without relying on traditional banking documents poses an additional obstacle.
Rhodes noted that these are not questions that the Commission can answer alone and that they go beyond the regulation of gambling and go to the heart of financial supervision.
The broader shift in digital behavior
The transformation of the UK market reflects wider changes in consumer habits and technology.
According to the latest UKGC gambling survey in Britain, participation remains stable at 48% of adults. The total market is valued at £15.6 billion, or £11.5 billion excluding lotteries. Remote gambling now accounts for 60% of the non-lottery market, with online casino games generating £4.4 billion in 2023/24.
Rhodes said this reflects a deeper digital trend. Around 95% of UK adults have access to the internet at home and spend more than four hours a day online, mainly via mobile devices. As younger consumers embrace crypto, this shift away from traditional finance could soon influence how they play.
AI, application and data-driven monitoring
Rhodes also discussed the role of technology in reshaping operations and regulations.
AI tools, he said, are now being used by operators to improve the consistency of safer gaming interactions. But hyper-personalized content remains a risk, likely to generate over-engagement and harm.
When it comes to enforcement, the UKGC has seen a 300% increase in criminal cases over the past year, with most relating to breaches of the integrity of illegal gambling and betting. The regulator’s illegal gaming team flagged nearly 200,000 URLs, and search engines removed about half of them.
The UKGC is now targeting gaming providers who power unlicensed sites, in a bid to disrupt the supply chain at source.
Young players and financial risk
The Commission’s latest data reveals how financial pressures and gambling overlap among young adults.
A pilot study using credit benchmark data found that high-spending customers were up to five times more likely to have defaulted on a debt in the past year. Consumers under 25 were least likely to set deposit limits, but most likely to trigger financial risk thresholds.
Rhodes said these findings highlight why data-driven monitoring tools, like the UKGC’s Regular Operator Core Data (ROCD) feed, are essential for identifying risks without encroaching on personal freedom.
Collaboration across borders
The rise of crypto and AI is forcing regulators to rethink how they cooperate on a global scale.
Rhodes closed his speech by calling for greater collaboration between regulators, saying that challenges such as digital currency, illegal betting and consumer protection are now shared across markets.
Following his speech, the UKGC published its new evidence roadmaps, outlining research priorities and funding supported by the next statutory levy. The initiative will guide long-term studies of gambling behavior, harms and regulation, topics likely to intersect with the growing influence of crypto.
The dynamics behind digital change are obvious. The only uncertainty now lies in how regulators will adapt and whether the next era of gaming will be shaped by caution or innovation.
Source: NEXT.io
