Gaming Regulations Uk

Unambiguous. That’s the best word you can use to describe gambling and online gambling laws in the United Kingdom.

Gambling in the United Kingdom is regulated by the Gambling Commission on behalf of the government's Department for Digital, Culture, Media and Sport (DCMS) under the Gambling Act 2005. Agencies: Our directory of organizations that license and regulate gaming industry operators and suppliers includes 682 agencies and commissions in 144.

The ACT Gambling and Racing Commission legislative authority stems from the Gambling and Racing Control Act 1999. The following list are links to the relevant Gaming Laws and Subordinate Laws that are administered by the Commission. Authorised versions of the ACT Gaming Laws are available from the ACT Legislation Register.

You can’t say that about many other places, even those that have legalized gambling to some extent. Most locations are vague about online gambling especially, while others relegate decision-making to various states, territories, or provinces.

While there were other gambling laws, like the 1960 Betting and Gaming Act, the United Kingdom streamlined gambling legislation and regulation when the UK Gambling Commission emerged in 2007.

Aside from horse racing, the Commission is the catch-all for applications, oversight, and implementation of new gambling laws in the UK.

Whether you’re interested in learning more about online casinos, land-based gambling venues, sports betting, or problem gambling support, there are definitive answers to be had. We’re going to share them in our guide to UK gambling laws.

One of the most significant distinctions with UK gambling laws is that they cover both land-based and online services, which is unusual compared to many other regions.

Several countries enforce brick and mortar compliance but are loose about virtual gaming betting, either ignoring the topic or using language that’s open to interpretation.

The best place to start with an in-depth look at gambling and online gambling laws in the United Kingdom is with one simple rule.

If you’re familiar with the gambling laws in other countries, that decree may seem unusually clear. It’s a system that actually works in the United Kingdom, as there’s a long list of licensees, both in-country and from other jurisdictions.

Because there are so many approved providers, residents don’t need to look elsewhere for online gambling services.

There are more than 1,000 remote licensees provide legal gambling services online. Then, you’ve got 8,300+ bookmaking operations throughout the country, the lottery, 51,000 pubs with two gambling machines each, more than 150 land-based casinos, and online betting services too.

Here’s a list of all the legal and regulated gambling activities available in the United Kingdom.

• Land-based casinos (slots and table games)
• Online casinos (slots and table games)
• C or D category gambling machines in pubs
• Sports betting and online sports betting
• Horse racing betting –on course, online, and at bookmaker shops
• Poker and online poker
• National Lottery (and other private lotteries)
• Bingo and online bingo

All you have to do is look at the list of legal gambling pursuits in the UK to see that the country has taken a very liberal stance.

The clarity of UK gambling laws is a positive for sure. But is the abundance of available betting and gaming activities a good thing?

There are some issues currently being addressed, like addiction and underage gambling. However, a tightly controlled legal gambling system has also been beneficial. The industry contributes a few billion to the government each year. Yes, that’s billion with a b.

Also, with licensing and regulation, players have a safer environment, particularly with online gambling services.

Things weren’t always “anything goes” in Great Britain, though.

The 20^th century began with limited gambling opportunities before it ended with sportsbooks, casinos, poker rooms, and bingo halls.

One of the most pivotal pieces of UK gambling legislation was the 1960 Betting and Gaming Act. It ushered in the era of land-based casinos and bookmakers on the High Streets.

More than 16,000 licensed bookmaking shops popped up within five years of the Betting and Gaming Act passing.

The Gambling Law of 1968 cleaned up some of the 1960 legislation language, as casino-type betting became almost a free for all, with casinos popping up in private venues across the country.

In 1968, a Gaming Board was established. Casinos were still legal, the parameters were stricter.

UK online gambling laws date back to the Gambling Act of 2005. The act legalized internet betting and designated the UK Gambling Commission, replacing the Gaming Board.

So, all at once, both land-based and online gambling was wrapped up in a neat little regulatory package. The Commission set up licensing and regulation guidelines, explicitly spelling out terms, conditions, and tax obligations.

While 1960 and 2005 were two critical pieces of gambling expansion legislation, there have been quite a few other milestones on the journey.

Here’s a summary showing the evolution of gambling laws in the UK.

UK’s Gambling Act of 2005 made provisions for the UK Gambling Commission, officially established in 2007.

The Commission licenses and regulates the gambling industry, including bookmakers, casinos, and the National Lottery. But it doesn’t do it alone, as it’s in conjunction with nearly 400 local licensing authorities in England, Wales, and Scotland.

Gambling is a big business in the UK, amounting to billions of pounds annually, and the Gambling Commission manages those numbers.

Overall, the program consists of five types of licenses and seven streams of income.

The five types of UK Gambling Commission licenses are as follows.

• Non-remote general betting
• Remote general betting
• Remote general betting limited
• Remote intermediary – trading rooms
• Pool betting – remote and physical

Taxes are generated as follows.

• Bingo duty
• Gaming duty
• General betting duty
• Lottery duty
• Machine games duty
• Pool betting duty
• Remote gaming duty

Online Gaming Regulations Uk

Depending on the operator, there could be crossovers, and each is set at different tax rates. For example, machine games alone break out into three categories.

Type one machines attract a 5% tax, type two a 20% tax, and all others are at a 25% rate. While the remote gaming duty started at 15%, it was increased to 21% in 2019.

If you’re wondering which duty contributes the most to the economy, you might be surprised to learn that it’s the lottery. In the first half of 2020, lottery proceeds accounted for 34% of gambling revenue.

Off-the-books horse betting in England dates back several centuries. The industry picked up speed in the 19^th century.

After the 1934 Betting and Lotteries Act passed, and the Pool Promoters Association was established, prominent providers like Littlewoods and William Hill took the reins.

The 1934 legislation was geared toward the racecourses instead of street bookmakers, so off-course betting was in a gray area.

It wasn’t until the 1960’s Betting and Gaming Act that legal bookmaking was finally recognized. Once the government gave the nod, the industry exploded.

More than 10,000 licenses were awarded almost immediately, and affinity for betting shops has never gone away. You’d be hard-pressed to find a high street without at least one, if not a handful.

Bookmaking legend William Hill didn’t wait for the Gambling Act of 2005 to give the OK to online betting. William Hill launched a sports betting and casino website in 1998. Seven years later, internet-based bookmakers joined the betting shops as officially sanctioned UK services.

Remote gaming providers pay duties based on the type of bets. For example, financial spreads are only set at 3%, while general betting is 21%.

Horse racing is also handled through high street bet shops as well as online operations. Again, bookmaking is only legal if the provider has an active license with the UK Gambling Commission.

Bookmaking may have more longevity in the United Kingdom, but don’t underestimate a slot or fruit machine’s power.

Gambling machines and pubs go together like chips and vinegar. There are more than 51,000 permits for machine-based gaming.

Every liquor-licensed establishment throughout the UK is automatically eligible for two machines with Gambling Commission notification. However, the pub or club can request a license for more.

It’s not just pubs that carry casino-type gaming machines, though. Since they were approved back in the 60s, they’re in casinos, clubs, betting shops, bingo halls, adult gaming centers, commercial clubs, etc.

Minimums, maximums, and payouts depend on the category of machine.

The casinos throughout the United Kingdom also have their share of machines, bank after bank of them. But table games and electronic table games also take up prime real estate on the gambling floor.

There are just over 150 casinos, and 75% are under the Grosvenor or Genting Group branding. While proposals for Super Casinos have come and gone, the majority of gambling venues are smaller operations.

They may have Vegas-style gaming, but you wouldn’t compare them to the mega-resorts in Sin City.

Remote or online casinos are another story, as the UK Gambling Commission has more than 1,000 licensees. Revenue for online slots and table games is now nearly triple what the brick and mortars are generating.

The fiscal year 2019 produced just over £1 billion in gross gambling receipts from non-remote casinos. Remote (online) casino gambling came in at nearly £3.2 billion.

Locations where online gambling is not properly regulated but still going strong lose out on any tax benefits.

In the UK, every remote casino, bingo provider, poker room, and bookmaker is required to secure approved licensing and pay the proper duties.

When it comes to the gambling laws and online gambling laws in the UK, expansion isn’t up for discussion as everything is already approved. The only caveat is that all providers be licensed through the UK Gambling Commission.

Instead, the gambling focus in the United Kingdom is on protecting problem and underage gamblers.

As of April 2020, licensed gambling sites can no longer accept credit cards. That carries over to services like PayPal, which attaches to debit and credit cards to fund the e-wallets. PayPal has notified all of its customers, and the new law will be strictly enforced.

Recent studies by the UK Gambling Commission have also shown a rise in underage gambling.

New regulations and training are also in effect for gambling providers regarding age verification.

The UKGC has provided kits with tips and new rules for substantiation. They can take up to 72 hours to allow a player to use the service.

There are plenty of resources for anyone with a gambling problem in the United Kingdom, no matter how mild or severe. However, one of the issues, on top of the compulsiveness, is that only 3% of British citizens who fall into the category seek help.

In addition to taking credit cards off the virtual table, gambling laws in the UK are being reevaluated to address players who aren’t merely betting for fun.

The NHS has an entire list of agencies and resources addressing problem gambling. The following are the most utilized.

• GamCare and the National Gambling Helpline (0808 8020 133)
• Gambling Anonymous UK (with local support groups)

For casino gambling and sports betting, 18 is the legal age. However, anyone 16 or older can buy lottery tickets, scratch tickets, or participate in betting pools (pools only; not sports betting).

The same age ranges apply to legal online gambling in the UK as well.

The Aspers Casino in Stratford, Resorts World in Birmingham, and the Hippodrome London are relatively close in size.

Each has more than 100 slots and plenty of table games, dining, and more.

No. UK gambling laws have maintained that winnings are not taxed.

Instead, the licensed providers cover the tax burden through seven duties (bingo, gaming, general betting, lottery, machine games, pool betting, and remote gaming).

UK gambling laws require machines to have a minimum of 70% RTP.

That means that for every £1 invested, there should be a £0.70 return averaged over time.

While traditional debit cards are still at the top of the list, other popular methods include PayPal, Neteller, and Skrill.

Banking menus vary per site and include prepaid vouchers and different ways to make it easy to move money back and forth. As of Spring 2020, credit card acceptance is off the table, though.

Yes, charity fundraisers are prevalent throughout the UK. A license isn’t even required for small lotteries under £20,000, but agencies need to register with their local authority.

Casino, bingo, poker, and race nights are also allowed and remain in “non-gambling status” if participants are charged £8 or less, and the prize pool stays under £600.

You don’t need to have a law degree to understand gambling and online gambling laws in the United Kingdom. They’re straightforward, as anything goes as long as it’s through a provider that’s licensed and regulated by the UK Gambling Commission.

Residents aren’t limited either. In some countries, there could be a handful of approved vendors. But in the UK, players can take advantage of over 1,000 licensed betting sites. That includes casinos, sportsbooks, bingo, and poker.

The United Kingdom has some of the most straightforward laws governing the gambling and betting industries in the world. At the same time, it provides some of the most stringent laws, restrictions and customer protections in the world. Unlike many other places around the world where gambling is highly restricted on paper but runs wild outside the law, the country allows casino games and betting – it simply regulates them very actively.

In the following sections, we will look at the legislation concerning casinos in the United Kingdom, an industry that is now producing over £3.2 billion in gross gaming yield. There are more than 150 casinos in the UK, while the number of online licenses is quickly growing and now exceeds 2,000.

Gambling in the UK: Historical Overview

Gambling first became subject to state regulation in the 1400s when authorities in the country restricted betting on horse races and sports to the nobility, while the poor could only play dice games. The Unlawful Games Act 1541 outlawed practically all forms of gambling but it was never really enforced - just a few years later, lotteries were officially launched through a Royal Charter from Queen Elizabeth I. The first gaming houses and clubs emerged in the late 1700s and since then, they operated under different regulatory regimes.

Different laws were passed, amended, and repelled over the following decades and centuries and although casinos were outlawed temporarily, they continued to gain popularity in the underground. In the 1960s, the UK finally legalized casino operations and today, gaming establishments can be accessed by anyone over the age of 18. The main regulatory authority is the Gambling Commission, which oversees all forms of gambling (with the exception of spread betting) on behalf of the government's Department for Culture, Media and Sport (DCMS).

The Gaming Act of 1968

The Betting and Gaming Act 1960 legalized private casinos for the first time, although it was very restrictive – these casinos were licensed by the Gaming Board of Great Britain and had to be members-only clubs where up to 10 gaming machines could be installed. Casino Club Port Talbot in Wales is believed to be the first legal casino in the UK.

Later, the law was liberalized with the passing of the Gaming Act 1968. It allowed the operation of larger casino establishments with more gaming machines and easier access by patrons. Of course, the Act banned casino gambling for persons under the age of 18.

Gambling Commission

The Gambling Commission (UKGC) was set up under the Gambling Act 2005 and took authority over all commercial gambling in the UK in 2007. This is an independent agency and an executive non-departmental public body sponsored by the Department for Culture, Media and Sport (DCMS). Its headquarters is located in Birmingham and it has more than 300 employees.

Under Section 20 of the Gambling Act 2005, the Commission replaced the Gaming Board for Great Britain and it has jurisdiction over the arcades, betting, bingo, casinos, slot machines, and lotteries. It regulates the remote gambling sector, which includes online bookmakers, bingo and casino websites. On 1 October 2013, the National Lottery Commission was abolished and its responsibilities were transferred to the Gambling Commission, including the monitoring and regulation of the National Lottery. However, the UKGC has no authority over spread betting – it is regulated by the Financial Conduct Authority.

The main responsibilities of the Commission include licensing – it issues licenses to operators, but it also has the right to revoke them and to levy fines for violations of the relevant legislation. The agency has investigative powers and can prosecute illegal gambling operations. Additionally, it advises the Government and local authorities on various gambling-related issues. The Commission may make recommendations for amendments to the current legislative framework. It is also responsible for the monitoring and supervision of all gambling operations and can make different inspections and inquiries.

Gambling Act 2005

The main piece of legislation that regulates both land-based and online casinos in the UK is the Gambling Act, passed in 2005 by the Parliament of the United Kingdom. It controls all forms of gambling in England, Scotland, and Wales. The Act established the Gambling Commission and transferred licensing the magistrates' courts to local authorities and to Scottish licensing boards.

Considered to be the most important overhaul of the gambling industry in the country since the 1960s, the sets out three main objectives. First, it aims to guarantee that all gambling is conducted in a fair and open way. Second, it prevents gambling to be associated with any form of criminal activity. And last, but not least, it focuses on minimizing the negative impact of gambling on society - it aims at protecting children and other vulnerable groups from problem gambling.

The law does not place any restrictions on casino patrons - they are allowed to play casino games without a license and they do not need to pay any taxes on the profits generated from gambling activities. Of course, the minimum age requirements have remained. Online casino operators are required to conduct age and identity verification procedures (these were updated in 2019) for all newly registered customers.

The Gambling Act 2005 has an entirely different impact on operators, however. First of all, we should note that it does not differentiate between land-based and remote operations - casinos are defined as 'an arrangement whereby people are given an opportunity to participate in one or more casino games'. And casino games refer to 'games of chance', which is different from equal chance gaming. All casino operators are required to obtain a license from the Gambling Commission and their profits are subject to taxation, depending on the type of game they offer - games such as roulette, poker, and blackjack may come with a tax, ranging from 15% to 50%. Land-based slots, however, are taxed at a rate from 5% to 25%.

Casino Licenses

The Gambling Commission issues several types of licenses for the casino industry – operating licenses (including gambling software operating license), personal licenses for croupiers, as well as premises licenses (these are usually issued by local authorities responsible for a certain area). Operating licenses are, of course, those that matter the most when it comes to the casino sector.

Casinos may be classified as small, large or regional casinos. They all need to meet certain licensing requirements – when considering whether to grant an operating license, the Gambling Commission takes into account a range of factors, including the “applicant’s integrity, competence, and finances (including source of finance)” according to the Guidance to licensing authorities.

Casino Games

Casino games are a particular group of games of chance that can be offered only in casino premises and not equal chance games. According to the Guidance to licensing authorities issued under the Gambling Act 2005, equal chance gaming is “gaming which does not involve playing or staking against a bank, and where the chances are equally favourable to all participants”.

Currently, no casino games are banned in the UK. The Commission has published the rules of the most popular casino games. They include roulette, three card poker, blackjack, punto banco, and dice.

Gaming Machines

Nv Gaming Regulations

The other types of games that can be played in casinos are gaming machines. They can be Category A, B, C, or D, and according to Section 236 of the Gambling Act 2005, Category B gaming machines are divided by subcategories, as well. The different categories are defined by the maximum stake and maximum price the game can deliver. These, however, have been updated since 2005. In addition, each category is allowed in different types of premises, with Category A and B1 machines available “only in the highly regulated environment of casinos“.

Based on the classification of each particular casino, it may host a different number of games. Small casinos are allowed to offer up to 80 machines of Category B, C or D, while large ones can host a maximum of 150 machines of Category B, C or D. Regional casinos are allowed to have up to 1,250 machines of Category A, B, C or D.

Protection of Children and Young Persons

Since one of the main objectives of the Gambling Act 2005 is to protect children from gambling activities, the Commission has taken a range of measures to prevent underage gambling. They are described in the Licence Conditions and Codes of Practice, which are documents regularly issued and updated by the UKGC.

According to them, casino operators must block access to their premises for individuals under the age of 18. To ensure this rule is enforced, operators need to have a door supervisor at every entrance to a casino. When it comes to online casinos, age verification procedures are mandatory – operators must require new account holders to provide copies of their government-issued IDs, where the name and age are clearly visible, as well as proof of address such as copies of recent utility bills.

Casino games, with no exceptions, can be played only by persons aged 18 and over. When it comes to gaming machines, however, the law sets no minimum age for players of Category D machines. Of course, all other games – all category A, B and C machines, including category B3A gaming machines offering lottery-style games, are allowed for persons aged 18 and over.

Gambling (Licensing and Advertising) Act 2014

The Gambling Act 2005 has been amended multiple times over the past 15 years. Probably the most important updates to the legislation were made with the Gambling (Licensing & Advertising) Act 2014. It contributed several major amendments to the Act, most notably a requirement that all off-shore gambling companies apply for a license from the Gambling Commission.

Additionally, foreign operators from the white-listed gambling jurisdictions were required to submit to a 15% point of consumption (POC) tax on gross profits.

Whitelisted Gambling Jurisdictions

Until 2014, when amendments to the Gambling Act were made, operators licensed in certain countries could advertise their services and provide gambling facilities in the UK without an additional license from the UKGC. Casino and betting firms from countries outside the UK and Gibraltar were not allowed to advertise in the UK unless they were from these so-called white-listed gambling jurisdictions – EEA countries, Alderney, Antigua and Barbuda, Gibraltar, Isle of Man, and Tasmania.

However, the Gambling (Licensing and Advertising) Act 2014 brought changes to the licensing regime for operators. Now, all firms that wish to advertise and provide gambling services to customers based in the UK must obtain a license from the UK. They must apply for either new authorization or for a continuation of their license.

Advertising Rules for Gambling Ads

One of the most important aspects of gambling regulation in the UK concerns the advertising and marketing of such products. The current rules are underpinned by the Gambling Act 2005 but are defined in detail in the UK Advertising Codes issued by the Committees of Advertising Practice (CAP). They are administered by the Advertising Standards Authority (ASA), a self-regulatory, non-government organization that acts as the main advertising regulator in the UK.

Advertising Standards Authority (ASA)

ASA was established in 1962 by the advertising industry with the purpose of adjudicating on complaints based on the recently published British Code of Advertising Practice (the CAP Code). Now, the Authority (although it is not a public authority in the usual sense) is responsible for regulating “the content of advertisements, sales promotions and direct marketing in the UK“.

It is a self-regulatory body, which means that its operations are funded not by the government but by a voluntary levy on the industry. Although it cannot enforce legislation, it can force firms to remove their ads if they break the CAP code.

Advertising Rules

The gambling and betting advertising rules were set up to ensure that ads are socially responsible. The rules apply to both direct advertising by gambling operators and affiliate marketing. All rules are listed in detail on ASA’s official website.

For instance, gambling ads cannot target children and young persons under 18. They cannot promise guaranteed winnings or imply that gambling can solve financial or personal problems. They should, however, promote responsible gambling and clearly explain that any form of gambling is associated with risk.

Remote Gambling

The Gambling Commission controls and regulates not only land-based casinos and gambling premises but also the entire remote gambling sector. This includes all online casinos - both UK-based and offshore brands, that wish to offer their services to patrons based in England, Wales or Scotland. According to the official website of the UKGC,

The remote casino operating license allows operators “to offer casino games to customers via a website, mobile phone, TV or other online service. This includes poker, roulette, blackjack and other casino games, as well as online slot games”. In addition, all online casinos must provide software from suppliers that have a licence from the Gambling Commission. The remote gambling software license is mandatory for all firms, which manufacture, supply, adapt or install gaming software to the websites of UKGC licensees.

GAMSTOP

Overall, there are no separate laws for remote gambling – online casinos, in particular, must comply with the same rules and regulations set up for land-based establishments in the Gambling Act 2005. There are some exceptions, of course. Online casinos, for instance, must prevent underage gambling, display the RTP (return to player) percentages for all games, and promote fair and responsible gambling.

Facilitating self-exclusion is mandatory. All online casinos must take part in the multi-operator self-exclusion scheme GAMSTOP, in particular, the UKGC announced in January 2020. By 31 March all operators will have to participate. GAMSTOP is a free service for all residents of Great Britain and Northern Ireland and it allows them to register online and exclude themselves from all gambling sites in the UK for at least six months. The scheme is run by a not-for-profit organization called The National Online Self-Exclusion Scheme Limited.

Ban on Gambling with Credit Cards

Another measure targeted mainly towards online operators is the ban on gambling with credit cards. The ban comes into effect on 14 April 2020 and applies to nearly all online and land-based gambling establishments. Its purpose is to reduce the prevalence of problem gambling among customers, especially among those that play online. According to UKGC research, roughly 22% of online gamblers who use credit cards for their gambling activities can be classified as problem gamblers.

“The ban, which will apply to all online and offline gambling products with the exception of non-remote lotteries, will provide a significant layer of additional protection to vulnerable people.“

Stake Limit on Fixed Odds Betting Terminals

One of the most popular types of gambling machines in the UK is a group of machines known as fixed odds betting terminals or FOBTs. The Gambling Act 2005 classifies FOBTs as Category B2 gaming machines and they are a type of electronic slot machine where the outcome has fixed odds. The RTP is always displayed on the machine and it is usually between 90% to 94%. Popular FOBTs in the UK are the electronic versions of roulette, for instance.

Originally, the Gambling Act 2005 determined that the minimum amount that could be wagered per spin was £1, while the maximum stake was £100. In May 2018, however, the Department for Digital, Culture, Media and Sport (DCMS) announced that the maximum stake would be lowered to £2 per spin. The new regulations came into force on 1 April 2019 – the maximum single bet was changed to £2, while the maximum prize remained the same at £500.

The move came after increasing concerns about the addictive nature of such types of games. Similar to standard slot games or fruit machines available only in the highly regulated environment of casinos, FOBTs are offered in betting shops and tracks with pool betting, as well. Moreover, critics claimed that the maximum allowed stake per single game resulted in huge financial losses for gamblers.