Online Gambling Licensing in the UK

Regulation

All online gambling activities in the United Kingdom of Great Britain are regulated by The Gambling Act 2005 elaborated by the UK Gambling Commission. Betting (whether on sport events or any other happening), gaming, and lotteries can be made available from an online gambling website located on the territory of UK if the appropriate remote gambling license is held.

The Gambling Act 2005 maintains the distinctions between gaming, betting, and the participation in a lottery and in certain aspects continues to regulate each of them differently. It starts from a principle that all commercial gambling is illegal unless provided by operators who hold the relevant operating licenses. The Act 2005 incorporates the principle that both terrestrial and online gambling will, so far as possible, be regulated in parallel. It, therefore, provides a structure for the regulation of online gambling, which is defined as gambling in which people participate by using ‘remote communication’.

UK gambling law incorporates ‘licensing objectives’, and the Gambling Commission must, therefore, always have in mind as its paramount consideration:

• preventing online gambling from being a source of crime or disorder, being associated with crime or disorder or being used to support crime;
• ensuring online gambling business is conducted in a fair and open way;
• protecting underage and vulnerable persons from being harmed or exploited by online gambling.

Licensing

To operate an online casino in the UK, the business holder requires one of the following as appropriate:

• a casino operating license;
• a bingo operating license;
• a general betting operation license;
• a pool betting operation license;
• a betting intermediary operation license;
• a lottery operation license.

A license permitting remote gambling will not also permit terrestrial operation. A license may permit more than one of the activities listed above, i.e. online gaming business operator that offers both casino games and betting would need only one remote gambling license covering both aspects.

Specific provisions in the 2005 Act relate to the provision of ‘gambling software’, which is defined as computer software for use in connection with remote gambling. To provide such software, the supplier will need a gambling software license.

The process under which an applicant applies for a remote operating license is detailed and thorough. As a preliminary, the applicant must:

• Identify the activity which he intends to be authorized by the license;
• Specify an address in the UK at which the documents can be served on them;
• State whether the applicant or their relevant principles have been convicted of an offence.

Any potential applicant must carefully consider, and seek legal advice on, the application process, the forms they must complete, and the detail they must supply. In considering the application, the Gambling Commission is directed by the 2005 Act to carry out the three licensing objectives listed above. The commission must also take into account the applicant’s suitability to carry on the business, as well as the suitability of the equipment which is to be used. The commission must also have regard to the integrity of the applicant and of other people relevant to the application, as well as the competence of the applicant to carry on the licensed activities in a manner consistent with the three licensing objectives. The commission must be satisfied with the financial (and other) circumstances of the applicant (and other people relevant to the application). These issues are addressed in a Statement of Principles for Licensing and Regulation, which the Gambling Commission Applies. All the needed documents needed to apply to receiving a license can be found at the official website of the Gambling Commission www.gamblingcomission.gov.uk.