The basis for regulating all gambling in the UK is the Gambling Act, which has been in force since 2005. The implementation of this law is carried out by a specially created Commission of the United Kingdom.
According to statistics, the UK gambling market is the largest in Europe, which makes it attractive and competitive. If an operator obtains an appropriate license for remote gambling from the UKGC, it receives ample opportunities for legal activity in the online gambling market.
That being said, the UK is also widely regarded as having the strictest jurisdictions in the EU, with a strong focus on player protection and social responsibility, and defining clear technical standards and guidelines for their implementation.
All operators based in the UK or offering their services to UK players are required to obtain one or more local licenses.
The UKGC offers a wide range of permits. It takes approximately 16 weeks to receive one certificate.
License for remote casino operation
The document allows operators to offer casino games remotely, for example through a website. The list of gambling entertainment includes table games (poker, roulette, blackjack) and online slots.
License for remote operation of bets on virtual events
The presence of this type of license entitles operators to remotely offer bets at fixed odds on virtual events (for example, virtual horse races). However, betting on real events is not included in this license.
License for remote operation of bingo
By obtaining such a license, the operator can offer bingo to users remotely.
License for remote operation of bets on real events
The presence of such a license allows the operator to remotely offer fixed odds bets on real events (for example, sports matches). However, betting on virtual events is not covered by this license.
License for remote operation of the betting shop
Based on this authorization document, the operator has the right to remotely offer a sweepstake. In the totalizator, winnings are calculated as follows: the total amount of all bets (minus the commission) is divided by the number of winners, and not according to the odds.
Personal management license
Such a document is required for persons who perform more than one of the following functions:
Personal functional license
This document is issued to the following persons in the gambling business:
Premises license
Issued when using the premises for organizing and conducting gambling.
Software license
B2B remote gambling software licenses cover numerous aspects of gambling activities. The authorization document makes it possible to: produce, supply, adapt or install gambling software that is used by operators licensed by the Gambling Commission. Moreover, regardless of whether they are located in the UK or outside it.
If you have a license, you can install the software on remote gambling equipment from the country in which the company is located. However, it is also the software provider’s responsibility to comply with the UKGC technical standards for remote gambling and software.
When considering an application for a license in the UK, the UKGC evaluates the applicant’s business intent, his ability to fulfill license obligations, and the conditions for carrying out the permitted activity.
The purpose of the Applicant’s Application Evaluation Process is to obtain proof of identity and ownership, and to examine the past and present financial history of all persons involved in the application, including criminal record/non-conviction and qualifications.
Therefore, in order to obtain a license in the UK, you must provide an extensive package of documentation when applying.
The list of documents depends on the type of enterprise. For example, an individual entrepreneur (individual entrepreneur) must provide identity documents, and a joint-stock company is required to provide documents reflecting the ownership structure scheme, management scheme, as well as the company’s charter, registration certificate and memorandum of association.
Organizations that are outside the country must provide a credit history. In case they already have licenses obtained in other jurisdictions, it is necessary to provide copies of these permits.
In addition, the list of documents depends on the type of license you want to obtain. In the case of a remote activity license, you will be required to provide documentation regarding online operation policies and procedures, software, operating model and scheme of end-to-end gambling services.
There is a list of basic documents that must be provided in any case:
In addition, those responsible for managing the business are required to provide a Personal Management License (PML) and/or application with a personal statement, depending on the specific conditions.
The UKGC license demonstrates the operator’s commitment to doing business that meets all conditions, and this is one of the reasons why it is valued by operators. Licensees are bound by the LCCP document, which details the requirements for the operator. Note that the set of rules is very strict compared to other jurisdictions and requires maximum vigilance, especially in relation to Know Your Customer (KYC) and Anti-Money Laundering (AML) policies.
The LCCP consists of three parts:
The first part reflects all the terms of the license agreement, including:
Second part includes legal and procedural aspects:
The last part of the LCCP briefly describes the responsibilities of personal license holders.
The application fee and annual fee amounts differ depending on the type of licenses and the annual income (GGY) of the business.
Online casino, betting on virtual events and bingo
Licenses for remote casino, virtual event betting and online bingo are divided into nine GGY groups.
Lower threshold – operators with GGY less than £550k pay an application fee of £4,224 and an annual fee of £4,199.
The upper limit is operators with a GGY of £1bn or more. Their application fee for them is £91,686 and the annual fee is £793,729 plus £125k for every further £500m GGY.
Online betting on real events
Remote betting licenses for real events use 10 groups.
The lower limit is that operators with a GGY of less than £550,000 must pay £4,693 to apply and £5,282 as an annual fee.
Operators with a GGY of £1bn or more must pay an application fee of £41,243 and an annual fee of £1,077,027 (plus £200,000 for every additional £500m GGY).
Online sweepstakes
The Remote Sweepstakes license also uses the 10-group system for settlement, however with different caps and fees.
Operators with a GGY below £1.5m must pay a £938 application fee and an annual fee of £2,406.
Operators with cap incomes of £1bn or more pay £7,030 per application and an annual fee of £907,832 plus £150,000 for every additional £500m.
Speaking about the disadvantages of the UK gambling license, it should be noted the severity of the restrictions that apply to services related to cryptocurrency.
On the one hand, UKGC does not prohibit the open use of cryptocurrency as a payment method on licensed platforms. On the other hand, the anonymity of cryptocurrencies prevents operators from accepting digital coins in practice while complying with the strict AML rules set by the UKGC.
Therefore, if you are planning to run a Bitcoin casino, then a UK license is not your option.
If a UK gambling license suits you in all respects, and you have decided to obtain this permit, get ready to go through a difficult path.
Applying for a gambling license is not as easy as it may seem. After all, even the slightest mistake or inaccuracy in the documentation provided can lead to a delay in the process, which takes four months. The prospect of not meeting the allotted time will obviously not bring joy.
You can avoid unjustified time and moral costs if you contact our company for help in order to get consulting and practical assistance in obtaining licenses. Our specialists will be able to successfully go through all stages of the process with you, from collecting documents and submitting an application to obtaining a UK gambling license.
For more information, please contact our sales team and get answers to your questions. We are sure that it will be much easier for you to build a successful business by cooperating with our company!
