No More Sister Sites? How UK Online Casinos Could Change Dramatically

The UK government is considering placing restrictions on white label casinos, which could put an end to sister site businesses.

This would mark a big change for the UK online casino industry, where many brands currently run under shared licences from platform providers.

For players, this could mean fewer casinos to choose from and the disappearance of some familiar brands. Right now, many UK casinos operate as sister sites so if these changes were to go ahead then the way the industry functioned in the UK would look very different in future.

At first glance, restrictions for players sound like bad news – but the reality might not be as gloomy. While some brands may disappear, players could benefit from more unique casinos that offer better and more innovative experiences. In this article, we’ll explore what could happen and whether players should really be concerned.

How Do Casino Sister Sites Currently Operate?

White label agreements are very common in the UK online gambling industry. Instead of each casino applying for its own licence, a white label provider successfully secures one from the UK Gambling Commission (UKGC) and then rents out an entire platform to different owners. This includes everything needed to run an online casino, such as the website, game selection, payment processing, customer support, and even promotions. As more owners use the same platform, this creates sister sites which are separate casino brands operating under the same licence.

Despite the UKGC’s strict rules and regulations, these agreements are perfectly legal. Under the current system, it is the white label provider – not the individual sister site owner – that is responsible for regulatory compliance. This means that the UKGC holds the platform provider accountable for all the casinos running under its licence, even if the brands are owned by different entities.

However, the UKGC has previously raised the need for better due diligence when approving white label agreements. In particular, the concern is that unlicensed operators would use white labels as a way to bypass the UKGC’s strict licensing process as they would never get approval themselves. This has led to discussions about whether platform providers are doing enough to vet the entities they partner with.

Recent controversy has put these arrangements under further scrutiny. A casino sister site brand that sponsored football club Leicester City has pulled out of the UK gambling market. It’s also facing a court case with rumours suggesting it’s on the brink of bankruptcy. This situation caught the attention of the UK government which has hinted that a crackdown on white label agreements could begin as a result.

What Would Happen if Sister Sites Disappeared?

If the UK government restricted the number of casinos a provider could operate under a single licence, it would drastically reduce the number of sister sites. Some providers currently manage over 100 under one licence, so limiting this would mean many would shut down.

An outright ban on white label agreements would be even more severe. If every online casino and gambling site were required to apply for its own UKGC licence, sister sites as we know them would cease to exist. Instead, the market would shift towards independent casinos, where a single company owns and operates just one or a small number of brands on its own platform.

However, it’s clear that these standalone sites are already popular with UK players. For example, Independentcasinos.com lists the best UK casinos that operate independently, and many of these are among the most trusted and widely used platforms.

Therefore, with sister sites potentially disappearing, it’s important to consider what this would mean for players. Would it be a bad thing? Or could it lead to a better online casino experience?

Downsides

The most obvious downside to losing sister sites would be a significant reduction in choice for UK players. Right now, sister sites make up a huge proportion of the online casino market, meaning that if white label agreements were restricted or banned, players would have fewer casinos to pick from. Some well-known brands that currently operate under white label licences could disappear entirely, forcing loyal players away from a familiar site.

Another big impact would be the slowdown of new launches. Most new online casinos in the UK today go live using white label platforms, as this allows them to get up and running quickly without having to apply for their own UKGC licence. If white labels were no longer an option, we would likely see far fewer new casinos launching each year, which could make the market feel more stagnant.

There’s also the concern that fewer options could limit innovation. More competition generally leads to better features and promotions, so a reduced number of casinos might slow down progress in the UK industry. However, it is generally considered that most white label sites aren’t the ones driving innovation anyway. They typically use the same platform and features with minimal changes, so while the market might shrink, the actual impact on innovation may not be as dramatic as it first appears.

Upsides

One of the biggest criticisms of sister sites is that many are essentially the same as each other, just with a different name and design. Sharing the same platform often means the same games, promotions, customer support teams, and more, meaning the experience between them can feel repetitive. If all casinos were required to be built on their own independent platform, it would encourage operators to create more unique and exciting experiences for players.

This could actually drive innovation in the industry. As many new casinos currently launch using white labels, there’s little impetus to push boundaries. However, if these arrangements were banned, each casino would need to stand out on its own. Instead of hundreds of similar sites saturating the market, operators would need to invest in fresh ideas to attract players. This could lead to new features, better promotions, and more engaging gameplay mechanics, all of which would benefit UK players.

Another major advantage would be better trust and transparency. Right now, the true ownership of some sister site casinos is unclear. If every owner had to hold their own UKGC licence, players would know exactly who they’re dealing with. This would reduce the risk of questionable operators entering the market, helping prevent scandals like those that have recently hit the news.

How Likely is it to Happen?

Right now, nothing is imminent. There has been no official announcement about banning or restricting white label agreements. If changes were introduced, they would likely take years to implement as the impact would be massive, affecting casino operators, platform providers, and more. There would likely be heavy pushback from the industry too, making a sudden ban improbable.

However, given the UK government’s recent comments, it can’t be ruled out in the longer term. Sister sites keep making headlines for the wrong reasons, with white label agreements recently being reported on by BBC.com which brings even more attention to the matter. If similar incidents continue, pressure to enforce limits or a ban could grow.

Ultimately, the future of casino sister sites depends on how well white label platform providers can weather the current storm. If more controversies emerge, the UKGC and government may feel compelled to act.