The United Kingdom has some of the most straightforward laws governing the gambling and betting industries in the world. At the same time, it offers some of the most stringent laws, restrictions, and customer protections. Unlike many countries where gambling is highly restricted on paper but unregulated in practice, the United Kingdom allows casino games and betting, but regulates them very actively. In the following sections, we will examine the legislation concerning casinos in the United Kingdom, an industry that now generates more than £3.2 billion in gross gaming yield. There are more than 150 casinos in the UK, and the number of online licenses is growing rapidly, now exceeding 2,000.
Gambling in the UK: Historical Overview
Gambling first came under state regulation in the 1400s, when authorities restricted betting on horse races and other sports to the nobility, while the poor were limited to dice games. The Unlawful Games Act 1541 technically outlawed almost all forms of gambling, but it was never seriously enforced; only a few years later, lotteries were officially introduced through a Royal Charter from Queen Elizabeth I. The first gaming houses and clubs appeared in the late 1700s, and ever since, they have operated under various regulatory regimes.
Over the following decades and centuries, different laws were passed, amended, and repealed. Although casinos were temporarily outlawed, they continued to flourish underground. In the 1960s the UK finally legalized casino operations, and today gaming establishments are open to anyone aged 18 or over. The main regulatory authority is the Gambling Commission, which oversees all forms of gambling (except spread betting) on behalf of the government’s Department for Culture, Media and Sport (DCMS).
The Gaming Act of 1968
Gambling CommissionGambling Act 2005
The main piece of legislation that regulates both land-based and online casinos in the UK is the Gambling Act, passed in 2005 by the Parliament of the United Kingdom. It governs all forms of gambling in England, Scotland, and Wales. The Act established the Gambling Commission and transferred licensing responsibilities from the magistrates’ courts to local authorities and Scottish licensing boards.
Considered the most significant overhaul of the country’s gambling industry since the 1960s, the Act sets out three main objectives. First, it aims to ensure that all gambling is conducted in a fair and open way. Second, it seeks to prevent gambling from being linked to any form of criminal activity. Finally, it focuses on minimizing the negative impact of gambling on society by protecting children and other vulnerable groups from problem gambling.
The law places no restrictions on casino patrons; they are free to play casino games without a license and do not need to pay taxes on profits generated from gambling activities. Of course, the minimum age requirements remain. Online casino operators are required to carry out age and identity verification procedures (updated in 2019) for all newly registered customers.
The Gambling Act 2005 has a very different impact on operators. Notably, it does not differentiate between land-based and remote operations: casinos are defined as “an arrangement whereby people are given an opportunity to participate in one or more casino games“. Casino games are described as “games of chance“, which are distinct from equal chance gaming. All casino operators must obtain a license from the Gambling Commission, and their profits are subject to taxation depending on the type of game they offer. Games such as roulette, poker, and blackjack may be taxed at rates ranging from 15% to 50%. Land-based slot machines are taxed at rates between 5% and 25%.
Casino Licenses
Casino Games
Gaming Machines
Protection of Children and Young PersonsGambling (Licensing and Advertising) Act 2014
The Gambling Act 2005 has been amended multiple times over the past 15 years. The most important updates were introduced through the Gambling (Licensing & Advertising) Act 2014. It introduced several major amendments, most notably the requirement that all offshore gambling companies apply for a license from the Gambling Commission.
Additionally, foreign operators from whitelisted gambling jurisdictions were required to pay a 15% point-of-consumption (POC) tax on gross profits.
Whitelisted Gambling Jurisdictions
Until 2014, when amendments to the Gambling Act were made, operators licensed in certain countries could advertise their services and provide gambling facilities in the UK without an additional license from the UKGC. Casino and betting firms from countries outside the UK and Gibraltar were not allowed to advertise in the UK unless they were from these so-called whitelisted gambling jurisdictions: EEA countries, Alderney, Antigua and Barbuda, Gibraltar, the Isle of Man, and Tasmania.
However, the Gambling (Licensing and Advertising) Act 2014 brought changes to the licensing regime for operators. Now, all firms that wish to advertise and provide gambling services to customers based in the UK must obtain a license from the UK. They must apply for either a new authorization or a continuation of their license.
Advertising Rules for Gambling Ads
One of the most important aspects of gambling regulation in the UK is the advertising and marketing of these products. The current rules are underpinned by the Gambling Act 2005 but are detailed in the UK Advertising Codes issued by the Committees of Advertising Practice (CAP). These codes are administered by the Advertising Standards Authority (ASA), a self-regulatory, non-government organization that serves as the main advertising regulator in the UK.
Advertising Standards Authority (ASA)
Advertising RulesRemote Gambling
The Gambling Commission regulates not only land-based casinos and gambling premises but also the entire remote gambling sector. This includes all online casinos, both UK-based and offshore, that wish to offer their services to patrons in England, Wales, or Scotland. According to the official website of the UKGC,
The remote casino operating license allows operators “to offer casino games to customers via a website, mobile phone, TV or other online service. This includes poker, roulette, blackjack, and other casino games, as well as online slot games.” In addition, all online casinos must use software from suppliers that hold a license from the Gambling Commission. The remote gambling software license is mandatory for all companies that manufacture, supply, adapt, or install gaming software on the websites of UKGC licensees.
GAMSTOPStake Limit on Fixed Odds Betting Terminals
One of the most popular types of gambling machines in the UK is the fixed odds betting terminal, or FOBT. The Gambling Act 2005 classifies FOBTs as Category B2 gaming machines, and they are a type of electronic slot machine in which the outcome has fixed odds. The RTP is always displayed on the machine, and it is usually between 90% and 94%. Popular FOBTs in the UK include electronic versions of roulette. Originally, the Gambling Act 2005 determined that the minimum amount that could be wagered per spin was £1, while the maximum stake was £100. In May 2018, however, the Department for Digital, Culture, Media and Sport (DCMS) announced that the maximum stake would be lowered to £2 per spin. The new regulations came into force on April 1, 2019: the maximum single bet was reduced to £2, while the maximum prize remained £500.
The move came after rising concerns about the addictive nature of these games. Similar to standard slot games or fruit machines available only in the highly regulated environment of casinos, FOBTs are also offered in betting shops and at tracks with pool betting. Moreover, critics claimed that the previous maximum stake per game led to significant financial losses for gamblers.