Everything you need to know about getting a UK gambling license.

Interested in entering one of the largest and most lucrative gambling markets in the world? You’ll first need a UK gambling license. Here’s everything you need to know about the application process, compliance requirements, UK gambling regulations and much more.

The UK Gambling Commission (UKGC) acts as the UK's gambling regulator and is an independent regulator established under the UK Gambling Act 2005. To operate legally in the UK, all gambling platforms must hold a license issued by the UKGC. The UKGC is also responsible for implementing changes to gambling regulations in the country, such as recent proposals contained in the UK White Paper on Gambling. The proposals cover various aspects of the gambling industry, such as VIP customers, slot limits, and financial risk checks (previously known as affordability checks). Check out our blog on the pros and cons of financial risk management.

Understanding UK gambling regulations.

• Remote This license allows licensees to offer casino games and gaming products to customers through online websites, television, mobile phones, or other types of online services.
• Non-Remote Gambling License: A non-remote gambling license allows betting activities at betting shops, racecourses, and courses.
• Ancillary License: An ancillary license is for operators who offer betting through email and telephone.

Operators must hold one or a combination of these licenses.

Licensing is mandatory even if the operator's online gambling platform is located in another part of the world. Essentially, an operator must obtain a license if it provides services in the UK. (Click on the underlined parts for general online gambling license requirements).

Eligibility criteria for a UK gambling license.

The European Commission will assess applicants against the following criteria:

• The identity of the applicant and the persons associated with the applicant. For example, if the applicant's gaming platform is part of a larger company, the owners of that company must also be assessed.
• The applicant's honesty, integrity and reliability
• Financial statements showing that the business has the financial capacity to operate successfully once licensed
• The applicant's expertise, experience, qualifications, background and character relevant to its application
• The applicant's criminal history and anything relevant to its application.

The Commission will also review the applicant's policies to ensure that:

• It incorporates and understands the legislation
• It complies with the stated licensing objectives
• There is evidence of compliance with social responsibility requirements.

Application process for a UK gambling license.

The applicant applies for a license to UKGC through the "License Application" service. Considering that all the information required at the time of application is submitted, it takes about 16 weeks for the committee to process the license application. It costs 370 pounds to apply for a UKGC license, and you need to pay with a credit card or debit card.

Operators are required to submit a wide range of documents, but some of them depend on the type of business to apply for a license. For example, in the case of a sole proprietor, you only need to submit the identity verification document, but for a limited company, you need to submit the following documents:

• Shareholder composition map
• articles of incorporation
• Management structure
• Certificate of establishment
• Memorandum of establishment

Overseas businesses must submit a copy of the credit report and a copy of the license issued in other areas if they are licensed in other countries.

In the case of a remote license, the business operator must submit the following:

• Documents on remote policies and procedures
• Management procedures including licenseing policies and procedures, licensing authorities' policies and procedures
• Gambling software procurement method and details
• System diagram showing the en d-t o-end process

Certain requirements are considered a required document and are required in all cases. Such requirements include the following:

• General policies and procedure s-These must be based on the standards for LCCP (license conditions and norms).
• Competition rules
• Customer rules
• Bank trading statement for the past 6 months for all accounts
• Business plan
• Proof of funding
• Prediction forecast for the next 3 years

The executive person must also submit a PML (individual management license) or a personal tax return according to the situation.

Key considerations for license applicants.

When applying for a license to UKGC, a comprehensive business plan is required to approve the application. A healthy business plan indicates that the operator understands its purpose and the necessary procedures for achieving it.

Operators should also focus on responsible gambling and protection. This includes tools such as useful resources for customers who are suffering from payment restrictions, sel f-exclusion, gambling addiction, or gambling addiction. In addition, the operator's platform must be safe using technologies such as SSL encryption to protect customer personal information and financial information.

Introducing powerful money laundering and illegal strategies such as KYC and AML solutions is also essential. Operators can detect and reduce gambling fraud and crimes by conducting due du duration and monitoring transactions. Keeping industry regulations and best practices is an important thing for licensing applicants.

Gambling regulations 101: EU and the UK.

See how gaming operators can respond to the situation that evolves every day in many areas, including Europe.

Compliance and reporting obligations.

All UKGC Licensees must comply with the regulatory obligations that must be fully satisfied. Such obligations include maintaining the perfections of all aspects of the management, maintaining accurate records, in timely reports of important information, and taking aggressive measures to prevent problem gambling. In addition, it includes providing highly transparent services to customers.

If you do not follow these obligations, you may be tragic, such as heavy fines, cancellation of licenses, and severe legal measures.

Licensing fees and taxation.

Due to licensing, business operators are divided into a total of nine categories according to GGY (Gross Gambling Yield). For example, a ggy gambling business operator with less than 550. 000 pounds must pay a 4. 224 pound application fee and an annual fee of £ 4. 199. GGY, on the other hand, must pay a £ 1 billion pound of 91. 686 pounds and the annual membership fee of 793. 729 pounds.

The POCT (POINT OF CONSUMPTION TAX), which was introduced in 2014, calls all the European Commission to comply with the taxes required to operate legally. This includes taxation on all profits obtained from gambling activities, regardless of where the operator is based, and compliance with tax collection and reporting. POCT has had a major impact on the British gaming industry, and the operator is prompted to adapt to the evolving tax requirements to maintain compliance.

License renewal and revocation.

The license update procedure is the same as the first application. You need to apply for an update from 6 months to two months before the license expires. The committee may refuse to update the license for the following reasons:

• If the update does not comply with the license requirement. In this case, the authorities may consult with the police chief. Therefore, the authorities pay attention to concerns regarding the use of facilities during the license period.
• If an authorised officer of a local authority is refused access to the premises without reasonable cause.

The Commission may also revoke a licensee's licence under the following circumstances:

• If the licensee fails to carry out licensed activities in accordance with the licence requirements.
• The Commission is unhappy with the licensee's financial position.
• The Commission is unhappy with the licensee's financial position.
• If the Commission determines that one or more licence conditions have been breached.

The Commission will normally inform the licensee of any licence decision it makes. A licensee may appeal the decision if:

• It receives a fine or warning
• Its application for a licence is refused
• Its licence is cancelled or suspended
• Its licence conditions are changed

What is the UK’s new Customer Interaction Guidance for Remote Gambling Licensees?

In August, the UKGC published revised customer response guidance for remote gambling licensees after a consultation period.

Remote gambling operators in the UK must implement the measures contained in the guidance by 31 October. The main aim of the new guidance is to minimise the risk of customers experiencing gambling-related harm by putting in place "effective customer response systems and processes". To do this, it proposes to use a three-tiered system:

1. Through a continuous monitoring process, franchisees should use harm indicators to indicate when customers may be at risk.

1. The ACT reviews the indicators and tailors its response depending on the type of fault. This may require automated actions or manual intervention. Activities and interactions should be logged. It may also require continuous monitoring alongside focused interventions.

1. Evaluate behaviors and determine whether further intervention is required. Such evaluation processes and systems should be built in from the start and not be an "afterthought".

This new guidance is crucial for all operators seeking to hold a UK gaming licence. After 31 October, all licensees will be required to have a process in place that allows them to identify risks, take appropriate measures and evaluate the effectiveness of those measures. This three-tiered approach is now considered essential throughout the entire customer-operator relationship.

Marketing and advertising guidelines.

Approved operators need to pay attention to the advertising standards and restrictions set by the European Commission. These criteria exist to protect minors and socially vulnerable to be unreasonably targeted by gambling ads, and guarantee that all ads are fair and transparent.

From a responsible marketing convention, businesses must recognize the guidelines and advertise in a socially responsible way, including the provisions on the use of specific messages and images. In other words, all marketing and communication in licensing must not cause customer misunderstanding. Businesses shall publish by the CAP (advertising committee) and comply with the UK advertising code managed by the ASA (Advertising Standards Bureau).

International expansion and cross-border licensing.

Many businesses have pioneered other markets to increase customer bases and diversify their revenue sources. However, cros s-border licenseing is related to various legal regulations, such as license, taxation, and regulations.

As mentioned above, overseas operators must submit a credit survey. If you transfer a license from other jurisdictions, you must submit a copy of the license issued by other jurisdictions.

Are you interested in entering Brazil into an emerging market? See our blog, "Review the complexity of Brazil's gaming license structure."

UK gambling license FAQs.

What is a UK gambling license?

In order for operators to provide gaming services in the UK, it is necessary to obtain a British gaming license. This license includes the promotion of remote gambling by online or other means and advertising (responsible) for consumers based in the UK.

Who needs a UK gambling license?

Operators who provide gambling services in the UK and advertise gambling to consumers must have a British gambling license.

How long does it take to obtain a license?

It takes up to 16 weeks to get a British gambling license. This period depends on various factors, but the most important thing is the content of the application.

What are the costs involved in obtaining a license?

The cost of acquiring a license depends on the business of the business operator. For example, a business operator with a GGY of £ 550, 000 must pay a 4. 224 pound application fee. This increases significantly in the case of the highest tenant in the industry.

How can I ensure compliance with UK gambling regulations?

In order to ensure that British gambling regulations, operators must confirm that the business is completely approved by UKGC. In order to deal with gambling and crime issues, we must have a strong policy and procedure. It is also important to always get the latest information if the British gambling laws and regulations are changed.

Can a license be transferred to another operator?

No, operating licenses are not transferable by default. This means that all gambling platforms in the UK must go through the same process.

Game on.

Like other industries, gambling has undergone significant digitalization in recent years. To launch a gambling platform in the UK, it is essential to comply with the new and updated upcoming gambling legislation.

Effective processes like KYC and AML solutions also help operators ensure compliance with international regulatory requirements.

Our highly configured platform for identity verification in the gaming market allows operators to stay up to date with ever-changing regulations and new fraud and scam schemes while ensuring a safe, secure and seamless gaming experience. Our latest platform enhancements provide UK-specific data checks and financial risk checks, providing operators with insights into player affordability metrics to comply with the latest updates to the UK gambling legislation.

Max Irwin, Sales Director, Gaming at Idnow Connect with Max on LinkedIn