UK gambling regulations consist of strict AML policies and complex licensing procedures. Sumsub explains how gambling businesses can stay compliant and avoid fines in the UK.
The UK is the second-largest gambling market in Europe, with British gamblers spending approximately £14 billion ($18.9 billion) per year. Understandably, industry regulations are continuously updated to prevent criminal activity in this massive industry.
The UK is constantly working to make the gambling industry safer. In December 2023, the Gambling Commission launched a new ‘Tell us something in confidence’ service to enable reporting of criminal and suspicious activity in the gambling industry.
To help you navigate the UK’s constantly changing regulatory environment, we’ve prepared a complete guide to UK gambling rules.
Is gambling legal and regulated in the UK?
Yes, gambling is legal and regulated in the UK.
The Gambling Commission of Great Britain is the primary regulator of the UK gambling industry. Itregulates various forms of gambling, including online gambling, sports betting, casino gaming, lotteries, and others. It also ensures that operators meet certain standards for fairness, integrity, and transparency, issuing licenses to operators who meet these requirements.
The Commission has the authority to investigate and enforce regulations, impose penalties for non-compliance, and address concerns related to problem gambling.
Furthermore, the UK has specific regulations for remote gambling operators. These operators must obtain a license from the Gambling Commission to legally offer their services to UK residents.
What are the main regulations?
The Gambling Act 2005 (GA) is the primary gambling regulation in the UK. The Act defines various gambling terms, such as “betting,” “lottery,” and “prize.” It also provides a set of requirements for all types of gambling licenses and explains all the prohibitions and sanctions for gambling businesses. The Act was created to fight crime (such as money laundering), protect children, and establish fair conditions in gambling. Accordingly, the Gambling Commission was formed to ensure that the industry meets the requirements set out by the Act.
What types of licenses are there?
UK gambling licenses are separated into three types: 1) operating, 2) personal, and 3) premises. The Gambling Commission issues operating and personal licenses, while local authorities issue premises licenses.
Operating Licenses
Gambling businesses need an operating license to provide the services mentioned in the section above. In cases where providers perform several types of gambling activities (e.g., casinos + gaming machines), they need to apply for separate licenses.
Operating licenses are separated into three categories: 1) online, 2) land-based, and 3) ancillary. Ancillary licenses apply to operators that provide telephone and email betting. In cases when gambling providers operate both remotely and non-remotely, they need to hold both online and land-based licenses.
Additionally, licensing is required even if a company’s online gambling operation is located in another country—so long as they provide services to gamblers in the UK.
The Gambling Commission Licensing Conditions and Codes of Practice (LCCP) outline the conditions and requirements that operators must adhere to in order to obtain and maintain their gambling licenses. The LCCP covers areas such as advertising and marketing, customer protection, anti-money laundering measures, and social responsibility practices.
The Remote Gambling and Software Technical Standards (RTS) provides technical requirements for remote gambling operators, including online casinos, sports betting sites, and poker rooms. It covers various aspects such as fairness of games, player fund protection, and responsible gambling features.
The Proceeds of Crime Act 2002 addresses anti-money laundering measures and requires gambling operators to have systems and controls in place to prevent money laundering and terrorist financing.
The National Lottery etc. Act 1993 establishes the framework and regulations for the operation of the National Lottery in the UK.
The Advertising Standards Authority (ASA) Codes governs advertising and marketing activities related to gambling. 토토사이트 Operators must ensure that their marketing materials comply with these codes, which include guidelines on responsible gambling messaging and restrictions on advertisements targeting vulnerable individuals.