Gambling has grown into a popular social and leisure activity throughout the UK, including Wales. This small country is bordered by the Bristol Channel, the Irish Sea, and England, and its residents are well known for their passion for gambling.
One of the greatest contributors to the ever-increasing popularity of gambling is the fact that the regulations are clear-cut yet rather rigid. In fact, the legal landscape in Wales differs from that in many parts of the world, where the legality of gambling is somewhat vague or there is a wide gap between the regulations and actual practice.
Yet the well-defined rules are not the only factor that has fueled the industry’s growth. Favorable conditions have also supported the expansion of the Welsh gambling market, and the figures prove it.
According to research carried out in 2015, more than 60% of people in the country took part in gambling-related activities. Furthermore, the share of men and women who gamble is almost identical, with statistics indicating that 59% of women and 63% of men have engaged in gambling, while slightly more than 20% placed their wagers over the Internet.
Over the years, many changes have helped shape the market. In this article, we will focus our attention on how gambling-related legislation has evolved and the factors that have fueled the rapid development of the industry.
Major Shifts in the Gambling-related Legislation
Playing casino games that suit their taste or betting on sports from the comfort of home is certainly not a pipe dream for Welsh residents, unlike in some other countries.
Because the regulations and laws adopted in the UK apply to Wales and Scotland as well, all forms of gambling are legal. There are no restrictions on sports betting or casino play, whether online or offline. Additionally, land-based casinos and their virtual counterparts are strictly overseen by the UK Gambling Commission.
Although the state’s grip on gambling is not as tight as in many other parts of the world, the industry is rigorously regulated, which benefits dedicated casino fans, including those in Wales.
The gambling market in the UK, Wales included, is highly lucrative, which explains why so many casino operators strive to enter it. Along with licensed online casinos based in the UK, there has been a notable rise in offshore casinos that want to serve Welsh players. To do so, however, they must obtain a license from the UK Gambling Commission.
Betting and Gaming Act 1960
Establishment of the National Lottery
Gambling Act 2005
Gambling Act 2014Regulatory Authorities
Among the strictest and most exacting regulatory bodies, the Gambling Commission of the UK is invariably at the top of the list. It replaced the Gaming Board of the United Kingdom, which had operated since the introduction of the Gaming Act 1968. Part 2 of the Gambling Act 2005 is dedicated to the establishment of the Gambling Commission, or, more specifically, to the transfer from the Gaming Board to the Gambling Commission.
Under the provisions of the Gambling Act, “the functions, rights, and liabilities of the Gaming Board for Great Britain shall on commencement become functions, rights, and liabilities of the Gambling Commission.”
Roughly speaking, the duties of the two bodies coincide to a certain degree, but the most obvious difference is that the Gaming Board was tasked exclusively with the oversight of the operations of casinos, lotteries, bingo clubs, and gaming machines. However, this is not the case with the Gambling Commission, as no form of gambling is left outside its scope except spread betting. The regulation of spread betting is among the duties of the Financial Conduct Authority.
The responsibilities of the Gambling Commission are quite extensive, as it grants licenses, sets the requirements operators must meet to earn approval, oversees the performance of licensed operators, and investigates activities considered unlawful under the Gambling Act 2005.
One more difference between the duties of the Gaming Board and those of the Gambling Commission is that the former was not allowed to prosecute offenses or conduct investigations.
It is important to note that the Gambling Commission also provides guidance to local authorities. In Wales, these local authorities include the county councils and county borough councils.
Gambling-related Legislation and How It Affects Players and Operators
The Gambling Act 2005 clearly defined the legality of the different forms of gambling. Today, policymakers focus on tightening the state’s grip on illegal gambling and introducing more stringent standards for player safety.
What is important to note, however, is that the current rules and regulations do not affect players and operators in the same way.
As far as players are concerned, they will be pleased to learn that winnings are non-taxable, unlike in some parts of the world where gamblers must surrender a portion of their winnings to the state.
Aside from the age restriction, gambling enthusiasts do not face any other limitations on their participation in gambling-related activities.
This is not the case for operators, who must comply with numerous requirements. First, their profits are subject to a 15% tax. In addition, operators must obtain a license from the UK Gambling Commission and adhere to the relevant codes of practice.
While providing their services to citizens of Wales, gambling operators must also comply with the standards of the Gambling Industry Code for Socially Responsible Advertising.
Although the gambling-related legislation of the UK, and Wales in particular, gives players considerable freedom, breaking the rules is ill-advised, especially given the penalties imposed for any infringement.
The heftiest penalties apply to offenses committed toward or by underage individuals.
Measures for the Protection of Vulnerable Individuals
There is no lack of awareness of vulnerable individuals, and the country’s policies to prevent underage gambling are stringent and closely monitored.
The Gambling Act 2005 is divided into 18 parts. The first provides definitions of key concepts, the second covers the creation of the Gambling Commission and its duties, and the third focuses on offenses.
Part 4, meanwhile, puts heavy emphasis on the protection of vulnerable individuals such as young people and children. The Act distinguishes between a child, which “means an individual who is less than 16 years old,” and a young person, which “means an individual who is not a child but who is less than 18 years old.”
A person commits an offense by inviting a young person or child to engage in any kind of gambling-related activity or by inviting them to visit gambling premises. Under the provisions of the Gambling Act 2005, children and young people are not permitted to visit gambling premises or provide facilities for gambling.
Residents of Wales and the rest of the UK may engage in gambling activities provided that they are at least 18 years old. Still, citizens should be aware that while lottery betting is allowed only from the age of 18, they can legally buy lottery tickets at 16.
Before gambling online, players must verify their identity. New customers must upload the required documents no later than 72 hours after completing the registration form.
Once a player’s identity is established, they will be allowed to add funds to their account and place real-money wagers. Verification also unlocks the free-to-play versions of games, if available, which are inaccessible until the process is complete. Bear in mind that if you leave the verification procedure unfinished, your gaming account will not be activated.
Identity verification ensures that underage and self-excluded individuals cannot place real-money wagers.
Payments via Credit Cards Are No Longer Permitted
Announced in January 2020, the ban on the use of credit cards for gambling-related transactions came into effect on 14 April 2020. This move by the Gambling Commission was welcomed by many because of growing concerns highlighted by research into problem gambling.
Research shows that a significant portion of gamblers who prefer to bet online manage their funds through credit cards. The concern is that a large share of these people fall into the category of problem gamblers.
No form of gambling is outside the scope of the ban, as it applies to betting both online and offline. The main purpose of this rule is to reduce the risks that arise when placing wagers with money you do not actually have, which can lead to significant financial harm.
The ban was introduced to provide vulnerable individuals with better protection.