Gambling Regulation and Licensing in the UK
Gambling, sports betting, and lottery are a favourite pastime for Brits and with almost half the nation trying their luck in casinos, poker rooms, bingo halls, and bookmakers, the government has taken a sensible approach to regulating the gambling industry – with the Gambling Act of 2005 and the establishment of the UK Gambling Commission. The commission oversees that betting is transparent and fair for all parties involved, preventing crime, protecting customers, and ensuring all betting operators adhere to a set of strict rules.
About the UK Gambling Commission
Set up under the Gambling Act of 2005, the Gambling Commission is an independent non-departmental public body that came into full power on September 1, 2007. The commission is funded and supported by the UK Department for Culture, Media & Sport. It acts as a regulator for all commercial gambling operators offering sportsbooks, bingo, remote betting, arcades, gaming machines, and casino software. In addition to covering remote gaming and several segments of the brick-and-mortar industry, its scope of responsibility extends to lotteries, including the National Lottery, since the commission took over the responsibilities of the National Lottery Commission in 2013.
What Is the UKGC’s Scope of Responsibility
With the establishment of the UK Gambling Commission, there were clear objectives set that it needed to follow. The main responsibilities of the commission include:
- Prevention – this goes both ways, as the commission’s commitment to crime prevention is towards the players and punters, as well as the bookmakers and casinos, ensuring all parties involved are protected from malpractices and fraud.
- Supervision – the commission has to maintain a fair and open industry where betting operations are transparent and unflawed, and responsible gambling is promoted. To this end, the commission sees that terms and conditions regarding bonuses and other promotional offers are in no way ambiguous or misleading.
- Protection – this is probably the biggest responsibility of the commission, as it has to prevent underage gambling and ensure that vulnerable people are not exploited for the purpose of gambling. This includes having stringent identity checks in place, monitoring, and engaging operators in responsible gambling.
The commission oversees clear bonus conditions and unbiased betting outcomes but there are certain aspects not in its jurisdiction. The UK Gambling Commission doesn’t provide:
- Mediation – if players want to voice a complaint about an operator, they need to address it to the operator’s customer care service or other designated unit dealing with clients’ concerns. If you’re unsatisfied with the way your complaint has been handled by the operator, you can pursue it further with one of the 11 alternative dispute resolution (ADR) providers approved by the commission. The Gambling Commission does not deal with complaints but you can report operators if you have reason to believe they’re engaging in fraudulent practices.
- Legal Advice – if you’re interested in setting up a gambling business, you can check on the commission’s website what types of licences you may need, how much they cost and the licence conditions. The commission doesn’t provide advice on business models or ideas. Still, you can contact them for information on the Gambling Act of 2005 which they’re capable of providing.
- Website Checks – in the UK, it is illegal to run a gambling operation online without having a licence from the UKGC, but it is up to the players to make sure a betting site has been licensed by the commission. All licensees must display their licence details, so before placing any bets, take a good look at the website and find the commission logo. When you click on it, it will take you to the commission’s website where you can get full disclosure.
What Is a UKGC Licence?
A licence from the UK Gambling Commission is a prerequisite to operate a gambling business in the UK. The Gambling Act of 2005 states that anyone willing to commercially advertise to or transact with customers for the purposes of gambling has to be licensed by the Gambling Commission. The commission’s scrutinising licensing procedure is a way of ensuring that any betting operator is capable of providing completely random, fair and true games. Any failure to comply with the requirements of the commission means that no licence will be issued. All individuals and operators in Great Britain that provide arcades, gaming machines, betting, lotteries, bingo, remote gambling, casinos, and gambling software need a UKGC licence. Betting operators are required to display their licence details on their premises or website. Licence number and status can also be looked up on the Gambling Commission’s site.
Gambling Regulators on the UKGC Whitelist
The UK Gambling Commission is responsible for issuing licences in the UK, but there are more licensing authorities and gambling commissions operating globally whose logos you may across displayed at online casinos, bookmakers, and poker and bingo networks. The UK Gambling Commission features some of them on its whitelist, which means they meet all standards of the government and their licensees can operate on the UK market.
Gibraltar is a self-governing British Crown Dependency and a full member of the EU. Its external affairs are managed by the UK but it retains independency in terms of legislation and taxation. Many UK operators choose to base their gambling businesses there, since Gibraltar-licensed operators are able to offer their services to residents of the UK thanks to its inclusion on the UKGC’s whitelist. Since 1998, the Gibraltar Licensing Authority has been responsible for issuing licences to operators that meet stringent criteria and the Gambling Commissioner has been overseeing that licensees conduct their operations as per established requirements.
A self-governing dependency of the British Crown, Alderney is home to the much respected Gambling Control Commission that was established in 2000 and now licenses and regulates some of the biggest names in the betting industry. Like Gibraltar, Alderney is on the whitelist of the UK Gambling Commission, allowing its licensees to operate and advertise on the UK market. Alderney is a trusted regulator with a well-established reputation. Being licensed by its Gambling Control Commission is not an easy process, nor is it cheap – only companies that have proven financial stability and ensure fair gaming can obtain licenses.
The Isle of Man is a reputable online gambling licensing authority with a clean record and a place on the whitelist of the UK Gambling Commission. Operators who hold a licence from the Isle of Man Gambling Supervision Commission can offer their services and advertise to UK residents. The authority started issuing licences in 2001 and now regulates some of the biggest names in the industry like PokerStars, Paddy Power, and Full Tilt Poker. The commission ensures crime prevention and player protection with a set of stringent requirements that all licence applicants have to meet.
Malta was the first EU member state to regulate online gambling. It started issuing licences in 2001 and now has one of the most popular license authorities in Europe, yielding approximately €50 million a year from its licensing activities. Although MGA claims to have high standards and monitoring in place for more than 500 sites it has licensed, it is not on the whitelist of the UK Gambling Commission. The authority issues four classes of licences according to the kind of games and betting types regulating casinos, bingo, lottery, poker, and software providers.
The small Caribbean country has been issuing licences since 1994 and regulates sites operating on the US market as well as non-US operators. Over time, the authority has significantly raised its regulatory standards and now issues licences after rigorous vetting, ensuring the complete protection of players. The Directorate of Offshore Gambling is one of the few authorities whitelisted by the UK Gambling Commission which means it meets the standards of the British government so all operators licensed by it can offer their services to players in the UK.
UK Gambling Jurisdiction and Regulations
Gambling in its diverse forms enjoys steady popularity among UK residents, so the government makes sure its regulation is straightforward and clear. Most forms of gambling in the UK, including remote gambling, are legal and all betting operators and software providers are strictly regulated as per the Gambling Act of 2005 whose purpose is to prevent gambling from being a source of crime or disorder, ensure that gambling is carried out fairly and openly, and to protect children and other vulnerable people from becoming subjects of harm or exploitation by gambling. The UK Gambling Commission was established under this act and since it began its operation in 2007, it has been responsible for regulating all forms of land-based and online betting, except for speed betting which is under the jurisdiction of the Financial Conduct Authority. All websites and brick-and-mortar betting shops and casinos are obliged to display their UKGC licence details clearly. Casino sites can also be regulated and monitored by other licensing authorities, some of which have been whitelisted by the UKGC, allowing their licensees to operate on the UK market, which is now one of the safest in the world.