UKGC Cites Danish Data for UK Market Statistic
FOI reveals the source of a key channelisation figure used by the regulator's CEO was a presentation from Denmark's gambling authority.
A Freedom of Information request has revealed the UK Gambling Commission sourced a key market statistic from a presentation by the Danish Gambling Authority. The figure, which describes the rate of gambling with licensed operators, was originally compiled by a third-party data firm, but the UKGC confirmed it does not hold the original calculation.
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A Freedom of Information (FOI) disclosure has revealed that a key statistic used by the UK Gambling Commission (UKGC) to describe the British market was sourced from a presentation by the Danish Gambling Authority.
The data was cited by UKGC CEO Andrew Rhodes in a speech to the International Association of Gaming Regulators (IAGR), where he described the UK as having "a liberal market place with high levels of channelisation, reported at 97.6 percent."
What the Data Shows
The FOI request, dated 10 November 2023, asked the UKGC for the source material and calculations behind this 97.6% figure. In its response, the Commission confirmed the statistic was taken from a presentation by its Danish counterpart.
The key details of the source material are:
- Presentation Title: The Danish gambling market 2012-2021
- Author: Kasper Vestergaard Frandsen, Special Adviser / Market Analyst, Danish Gambling Authority
- Date: 10 January 2023
The UKGC's response further clarified that the Danish authority had, in turn, sourced the figure from the specialist data and intelligence firm, H2 Gambling Capital.
However, when asked for a copy of the original report or calculation from H2 Gambling Capital, the UKGC stated: "this information is not held by the Gambling Commission."
Why This Matters for Consumers
This disclosure provides a rare insight into the data supply chain used by the UK's gambling regulator. The term "channelisation" is a critical metric in the industry, representing the percentage of a country's gambling population that uses locally licensed and regulated operators rather than the unlicensed offshore market.
A high channelisation rate, like the 97.6% figure quoted, is often used to suggest that a regulatory system is successful. It implies that the vast majority of consumers are playing on sites that offer UKGC protections, such as access to dispute resolution services and responsible gambling tools.
The fact that the UKGC does not hold the primary calculation for a statistic used by its CEO to characterise the health of the UK market highlights the complex nature of international industry data. While it is common for organisations to use third-party data for comparative analysis, this FOI response shows that the regulator did not possess the underlying methodology for this specific figure.
Industry Significance
The response underscores the role of specialist firms like H2 Gambling Capital in providing market-wide data that regulators across Europe use for benchmarking and policy discussions. It also demonstrates a degree of inter-regulator data sharing.
For consumers and industry observers, this case serves as a reminder of the importance of regulatory transparency. Understanding the origin of key statistics is crucial for accurately evaluating the effectiveness of the UK's regulatory framework and the statements made by its leadership.