The UK today is among the most regulated online and retail gambling markets. The rules are perfectly set in stone to keep things safe, transparent and fair for players. The UK is a leading country because it was home to the first brands that decided to go online and offer gambling via online sites. Therefore, in order to adapt, it quickly had to regulate the online gambling industry to keep everyone safe. What’s more, through complete regulation, the government would receive more funds through various taxes on gambling activities.
Generally speaking, when it comes to online betting and gambling, its popularity in the UK is huge. As a nation that is home to the most popular football league, millions of fans enjoy betting on sports events. Sportsbook’s popularity is followed by online casinos and bingo sites. People with various backgrounds enjoy spinning the reels and picking their favourite bingo numbers.
In this thorough guide, we’re going to cover the most important facts about the legality of online gambling in the UK. Every player needs to understand this so they’re aware of what their rights are, no matter if they’re playing at a casino, sportsbook or bingo site. Bingo is big in the UK, and that’s why Gamblizard found a list of the UK’s best bingo sites on the market. Keep reading to see how they’re regulated. Without further ado, let’s start with online betting regulations and move on to online casinos and bingo regulations.
The Legal Landscape of Online Betting in the UK
Different gambling activities are popular in the UK. That includes casinos and bingo, besides sports betting. That’s why you can find a list of online Bingo brands on Gamblizard.com, where experts analyse only brands that hold a UK Gambling Commission license. Still, sports betting stands out from the other types of gambling. It remains one of the most popular gambling activities in the UK. The first brands that offered online betting were launched in the UK. Ever since then, it has rapidly evolved, attracting millions of bettors to online sports betting platforms. Let’s have a closer look.
Is Online Betting Legal in the UK?
Online betting and gambling are fully legal in the UK. It has been permitted for several decades now, but it has been differently regulated throughout the years. In essence, all gambling activities are completely regulated through the Gambling Act 2005. It regulates both offline and online gambling activities. All brands which want to operate in the UK need to comply with the regulations of this law. Over the years, the law went through amendments to follow technological development. The internet changed things quickly, but lawmakers were quick and managed to keep up with the laws.
All this has made the UK one of the most advanced countries in terms of online betting and gambling regulations. The law clearly states how brands can advertise, what’s the legal gambling age and all the other important facts about the players’ safety. We’ll talk about each of these topics later in this guide. Let’s take a look at how online betting is regulated in the UK.
How is Online Betting Regulated in the UK?
Under the Gambling Act 2005, every operator requires a license to operate in the UK. This applies to both online sportsbooks and online casinos. All gambling sites are regulated via the UK Gambling Commission. It is responsible for approving operators before they launch their websites in the UK. The Commission also has the authority to check offshore websites. If the online sportsbook or casino is outside of the UK and wants to operate in it, it has to be located in one of the white-listed locations. These locations are:
- Isle of Man
- Tasmania
- Gibraltar
- Antigua and Barbuda
- Aldernet
- EEA Countries
Brands based in these locations can advertise and acquire UKGC licenses to operate in the UK. They’re deemed as safe and fair as other operators located within the UK borders.
UKGC has a crucial role in regulating gambling sites. Any brand that wants to launch in the UK must approach the gambling commission and submit an application to operate. After a thorough examination, the commission approves or declines their application. In case that application is approved, the Commission provides relevant details about why that’s the case. This lets the operator know what action is required to create a successful application next time. If the operator passes the check by the UKGC, it is ready to operate in the country.
One of the crucial things that the UKGC checks in all operators are fair play, responsible gambling features and player protection. These ensure that the operator has taken all the steps to protect players in every way. That means that the online game titles they play are fair and not rigged. It also means that they can take a break from gambling whenever they want. We’ll get into more details about these features later in the guide.
What are the Age Restrictions for Online Betting?
Age restriction is the same across the whole UK, and it is 18. Only those who are of that age or higher can register on online casinos and play games and table games. The same goes for online sportsbooks. The same rules apply to retail sportsbooks and casinos. This gambling age limit is put in place to protect minors from making bad choices while they’re young. Once they turn 18, young adults are more aware of their decision and know how to play responsibly.
The UK Gambling Commission takes this regulation very seriously. That’s why all online casinos check users’ age in one way or another. The first check is automatic during the registration process. Among many private details, a player also needs to enter their birth date. But that’s not all. It’s simple to enter false data during the registration process, so online sportsbooks and casinos require an official government document image to be sent to them. That way, the gambling site is certain that its customer can legally gamble. Depending on the platform, you’ll need to submit your documents when:
- Opening an account
- Confirming a new account
- Making your first deposit or withdrawal
License holders need to respect the gambling age requirements, otherwise, if they’re caught, there is a fine and a possible prison sentence of up to 51 weeks or up to 6 months in Scotland. This applies to both gambling sites and retail venues. The financial fine of the licensee goes up to £5,000. However, the biggest part of the penalty comes in the form of license loss. Given how expensive licenses are, losing one would result in the operator stopping all operations immediately.
Harsh regulations show that the government is serious about keeping the young population safe from gambling.
Licensing Requirements for Online Casinos in the UK
Licensing is a process that all online and retail gambling venues need to go through in the UK. It’s the only way to operate and casino or a sportsbook in the country legally. In this section, we’re going to examine what are some steps that businessmen need to take to apply for a gambling license in the UK.
What is the Process of Obtaining a UK Gambling License?
The application process is seamless, as the Gambling Commission lists all the required documentation on its official website. The most important step is to prepare all the necessary documentation to file an application successfully. Extensive documentation is needed because it ensures that the license requestor has no criminal background. Additionally, the documentation presents projections as to what the online sportsbook and casino want to achieve. The UKGC representatives used all the paperwork to evaluable whether the projections were in place and whether a business could meet all the proposed projections.
Not everyone will need to include the same documentation, but there are some things that will be required for all users. These are:
- Rules of play
- Customer terms & conditions
- Policies & procedures – LCCP
- Bank statements for all accounts for the last six months
- Proof of funding
- Profit & loss projections for the next three years
- Detailed business plan
In addition to these documents, those who are applying for an online casino will also have to prepare:
- System diagram for end-to-end process
- Gambling software supplies details
- Operational model map
- Software supply method
- Remote technical standards & testing strategy policies
As you can see, while there’s a lot of general documentation, each type of gambling license will require different paperwork during the application process. There might be a lot of operators in the queue when you’re applying, so be patient before your case worker goes over all the application forms.
During the application process, you’ll have to pay the application fee. However, there’s another fee if you receive a license. The annual fee must be paid within 30 days of receiving the gambling license.
Online casinos must meet strict criteria when receiving an appropriate license. The most important things to mention are:
- Secure platform
- Fair gambling conditions (no cheating on the operator’s side)
- Responsible gambling regulations
- Trusted and transparent payment methods
- Anti-money laundering compliance
With all this in mind, it’s clear that there are a lot of requirements that gambling operators have to meet.
So the next time you’re thinking of playing at an offshore operator’s site, think again. The UKGC has the strictest requirements in place. They ensure that the operators are completely fair and legal. That’s why playing at a licensed gambling site is necessary. You know that your private data is safe and that in the case you win, you’ll receive your payout. Therefore, before signing up on any online platform, scroll to the bottom and check whether it holds a UKGC license. It’s the only way to be certain that you’ll make a deposit on a safe platform.
Types of Gambling Licenses in the UK
The UKGC differently regulates various forms of gambling and products related to gambling. This includes:
- Casinos – License to operate retail casinos. Anyone wanting to open a casino will need a management and operational license.
- Betting – Retail sportsbooks also require a license. This includes on-racetrack bookmakers. An operating license is needed to run all types of sportsbooks legally.
- Arcades – Adult arcade centres require an operating license to offer these types of games to their visitors legally. UKGC provides this kind of license.
- Bingo – Bingo providers also require an operating license from the Gambling Commission.
- Gaming machine providers – Those who create gaming machines also need an appropriate license. It ensures that all their products are completely fair and in compliance with the market’s regulations.
- Gambling software providers – Online casinos rely on gambling software to make their platforms secure and feature-rich. The software includes games, payment methods and the overall structure of the site that is a host to online casino games. Providers of these software solutions also need licenses to ensure that online casinos are safe, fair and reliable.
- Lottery – Anyone who wants to run raffles and lottery, in general, requires an operation license. Like any other gambling activity, this one requires approval from the UKGC. It ensures these games are fair.
- External gambling – External gambling is all types of gambling mentioned above but offered online. Anyone seeking to offer external gambling activities also requires a UKGC license to operate.
External gambling refers to all the abovementioned gambling types, but online. So the commission regulates retail and online gambling. Operators can exclusively apply for remote licenses if they want to offer gambling only through their websites. The most important part is that a single operator can hold multiple licenses to operate different platforms. So the same operator can simultaneously offer bingo, casino and sports betting.
Last but not least, while getting an operational license from the Commission is the first step, retail casinos and other establishments also need a premises license, which is acquired locally.
Compliance and Reporting Obligations for Licensed Online Casinos
All brands operating in the UK need to be compliant with UKGC rules. Some of these include social responsibility, self-exclusion guidance, customer interaction, underage gambling prevention and following marketing rules.
Social responsibility means that every casino should keep crime out of the gambling world. Everything on the gambling site needs to be fair and transparent. Last but not least, anyone susceptible to gambling addiction should be protected.
Additionally, self-exclusion is crucial today, as it helps keep players safe. This goes hand in hand with customer interaction. It helps them completely understand all the features of a gambling platform.
Underage gambling prevention is crucial, so every online casino needs to have a system for checking a player’s age. Last but not least, fair marketing principles need to be adhered to. All promotional offers need to include key terms and conditions, whereas self-excluded players mustn’t receive any gambling promotional materials.
Another thing that operators need to be compliant with is their financial reporting. Every operator needs to keep financial reports transparent. This practice makes it easier to prevent and detect money laundering. When it comes to audits, all licensed casinos must be ready for an audit at any point in time.
Failure to adhere to any of the abovementioned compliance requirements will result in different fines. Some might even include loss of operating license.
Responsible Gambling Measures and Player Protection
As previously mentioned, the underlying reason why Gambling licenses are important is player protection. Responsible Gambling measures are another thing that all operators must follow. It ensures the utmost safety for every individual who enjoys gambling. Let’s closely examine what this means and why it’s so important.
What is Responsible Gambling, and Why is it Important?
Responsible gambling is always a burning topic. Given how this activity can be addictive, it’s necessary for the brands to implement certain tools to create a higher degree of safety for players. With tools at their disposal, gamblers can have better gambling habits, preventing them from developing any addictive behaviour.
Operators do this by implementing different features on their gambling sites. The most important ones to mention are self-exclusion, spending limits and monitoring users’ behaviour. With these measures in place, online casinos help their users in multiple ways. Here’s how.
Self-exclusion enables players to steer away from the online casino at their request. There are several self-exclusion types, depending on their length. It usually ranges from a month up to a couple of years. However, it’s important that the feature is available to players and that it’s easily accessible. In most cases, it will require you to reach out to customer support.
Spending limits are another way of staying out of trouble. With this feature, players can set daily, weekly and monthly budgets. The moment a player reaches a pre-set spending limit, they can no longer use the gambling site. This is actually a perfect way to limit your gambling spending.
Another healthy, responsible gambling feature is monitoring players. In retail casinos, this is achieved through employee training. They can more easily notice patterns of certain players and warn them that they potentially have a gambling problem. In online casinos, this process is automated. Modern solutions in online casinos are software tools that can pick up user behaviour automatically. A system warns the player to either take a break or do something similar.
Besides these systems in place, the whole responsible gambling journey starts with advertising. That’s why with every welcome bonus you can find in the UK, you’ll see the terms and conditions attached. There’s no misleading marketing anymore, and the key terms and conditions always end with Gamble Responsibly messaging, reminding players to stay in control of their gambling habits.
How Do Online Casinos Protect Players’ Personal and Financial Information?
In order to acquire licenses, online casinos in the UK must meet all the data security requirements. There are two ways in which the data can be breached. So all gambling sites need to ensure complete security on both fronts.
The first potential information leak can occur when a player’s computer or phone is communicating with the site. If the connection is not safe, third parties can easily capture data and use it in another place.
The second place where it’s necessary to keep information safe is the gambling site’s database. All the information entered on a gambling site is stored on servers. If someone gains access to it, they could steal sensitive information from online casino users. Here’s how gambling platforms prevent this from happening.
To ensure that the connection between a user and the site is completely secure, online casinos use SSL encryption. Any piece of information between your computer or phone and the website is completely encrypted. Nobody can access the information. Seeing whether an online gambling site has an active SSL certificate is easy. Click on the padlock on the address bar, you’ll see the certificate’s name. If the padlock is red, it means that your connection to the site isn’t secure. Never enter any private data when the padlock is red in the browser.
On the other hand, online casinos deploy advanced encryption in their databases. The 256-bit encryption is also used by the banks, meaning that all of the data stored is completely secure. The chances of any data breach are minimal. But that’s not all. User data can only be stored for a certain period of time according to the data privacy policies. Therefore, if you’re not using an online casino for some time, you don’t need to worry about data breaches. Chances are that the brand has automatically removed any private data from its servers.
It is for these reasons that playing at secure online casinos is crucial. The last thing you want is to have your payment information exposed to third parties. Only pick platforms that deploy both of the abovementioned security measures. It’s the only way to keep your private data safe.
What to Do in Case of a Dispute with an Online Casino?
One of the reasons why UKGC-licensed brands are safe to use is the complaint process they need to adhere to. All the brands operating in the UK need to offer fair and transparent customer support. If a user has a complaint, they need to be able to go through the complaint process.
If you feel like you haven’t been treated fair, you need to go through the complaint process. You need to:
- Carefully examine terms and conditions. If you still believe that there’s an issue, you can then take the next step.
- Find the complaint procedure. You can use Resolver, an independent body that can help you with your process, but this service is not supported by all online casinos.
- Prepare all the details for your complaint. Describe the issue in great detail and provide all the proof that supports your claims.
- Wait for the response, which can take up to 8 weeks. (Starting from confirmation that the casino has received your complaint)
- If you’re not satisfied with the outcome, you can forward the complaint to an ADR. (Alternate Dispute Resolution provider) The provider will examine your case and make the final decision.
The UK Gambling Commission has a big role in the whole process. Besides giving licenses to operators, it also regulated ADR Providers. They also need to meet the Commission’s thorough requirements to offer their services legally. It ensures that players get fair treatment.
All this shows that it’s best to pick brands that have been licensed by the UK Gambling Commission. They need to have a complaint system in place to help all the customers. However, despite meeting all the requirements, the quality of customer support varies from one brand to another. Pick a brand that has responsive customer support and efficient customer support. With their help, you can go through the complaint process easier.
Conclusion
UK today is the most regulated gambling market in the world. The country sets a true example of how legal gambling should be treated. It shows that it’s possible to regulate every aspect of it and keep the people safe in the whole process. All the operators offering betting and gambling services must provide safe platforms. On top of that, they need to stay compliant with the strict UK Gambling Commission requirements.
Even the technological revolution couldn’t escape the regulations. The Commission acted quickly over the years and adapted to the modern market. Despite most of the gambling being digital today, every bit of it is completely regulated.
The only room for growth comes down to regulating online casinos that accept crypto payments. Given how anonymous cryptocurrencies are, it goes against the strict anti-money laundering regulations. Until more progress is made, crypto casinos will remain unavailable to players in the UK. Still, that’ll likely change at some point in the future.
Biography of the author
Jamie Wall is a Gamblizard veteran casino analyst with years of experience in the industry. Having worked for NetEnt as a developer provided him with inside-out industry knowledge. When he’s not working on different iGaming projects, he is spending time with his family and friends.