UK Gambling License

Advantages of the UK Gambling License

The UK has one of the leading economies in the world and is among the most business-friendly jurisdictions, where licensed gambling operators can be assured that the government will not impede compliant business growth. In the World Bank Ease of Doing Business Index 2019, the UK ranked 8th out of 190 countries because it scored high on such aspects as starting a business, employing workers, obtaining permits, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.

The UK has been ranked 28th out of 162 countries in the 2023 Index of Economic Freedom. That fact represents proof of judicial effectiveness, a reasonable tax burden, regulatory efficiency, and investment freedom of this jurisdiction. Compared to most of the other European states, the labor market of the UK is relatively flexible; its gambling regulatory framework is robust, efficient, and transparent, hence luring an increasing number of gambling entrepreneurs.

The taxation system of the UK is relatively easy to deal with and effective; it has a lot of tax benefits and the rates themselves are not burdensome. For example, gambling businesses are usually liable under one of three regimes: General Betting Duty at 3-15%, Pool Betting Duty at 15%, or Remote Gaming Duty at 21%, charged on profits, defined as stakes received – less winnings paid out to UK persons where relevant. Besides, the UK is a party to more than 130 international agreements that provide for the avoidance of double taxation. These promote cross-border investments by providing such benefits to UK-based companies as not having to pay Corporation Tax on foreign dividends.

Advantages

Gambling Regulations in the UK

The Gambling Commission, which comes under the official body in the UK responsible for the oversight of gambling businesses, was designed to perform two key functions: keep crime out of gambling and protect people from being harmed or exploited by gambling. In order to do this, it enforces relevant gambling regulations, such as investigating and prosecuting illegal gambling, by working together with the police and other international agencies.

The main legislation piece on gambling within the UK is The Gambling Act 2005. This act outlines what each of the terms implies as far as gambling is concerned. This includes defining the conditions for all types of gaming licenses, including prerequisites regarding child protection, scrutiny policies, and indictment in case of a criminal offense.

According to the Gambling Act 2005, the term “gambling” means the following:

• Gaming – playing of a game of chance for a prize
• Bet – Making or accepting a bet on the outcome of a race, competition, or other event or process, the likelihood of anything occurring or not occurring or whether anything is or is not true.
• Participating in a lottery in which the persons, among other requirements under section 14, have to pay to enter the scheme, and the prizes are to be decided upon under a process wholly or partly depending on chance.

Other gambling-related legislation includes the following:

• Gambling (Licensing and Advertising) Act 2014
• The Gambling Act 2005 (Horserace Betting Levy) Order 2007
• The Gambling Act 2005 (Horserace Totalisator Board) Order 2007
• The Gambling (Geographical Distribution of Large and Small Casino Premises Licences) Order 2008
• The Proceeds of Crime Act 2002 (POCA)
• The Terrorism Act 2000
• The Gambling Commission’s Money Laundering and Terrorist Financing Risk Assessment

The Risk Assessment guidance is developed in cooperation with sector specialists including the National Crime Agency (NCA). It details the role of gambling operators in relation to the prevention of money laundering and financing of terrorism. To identify sector-specific risks and threats to operators, the GC uses the Financial Action Task Force (FATF) framework.

UK

Capital	Population	Currency	GDP
London	67,791,400	GBP	$47,318

Types of gambling licenses in the UK

In the UK, for instance, gambling licenses are highly intricately structured and issued either by the GC or a local licensing authority. While we may afford the types of each license below, our team here at Regulated United Europe will be best consulted if you intend on finding out which license types are required precisely for your business model. Finally, depending on your business activities, it may well be that you have to obtain numerous types of licenses.

Types of licenses for gambling in the UK include:

• An Operating License (issued by the GC)
• A Personal Management License (issued by the GC)
• A Personal Functional License issued by the GC
• A Premises License issued by a local licensing authority

Conversely, a very low-level license for the registration of lotteries and permits to provide gambling in pubs, clubs, and other premises are given by local licensing authorities.

Operating License

Every company desiring to provide services to the UK-based gamblers must obtain an operating license irrespective of locations of its operations, i.e. whether its operations are based within or outside the UK. It’s also necessary for companies who advertise their gambling services to UK consumers. An Operating License is usually valid for an indefinite period unless GC decides otherwise in line with sections 111 and 113-115 of the Gambling Act 2005.

For such licenses, with a certain termination date, you will be allowed to apply for your license’s renewal during the period that:

• Begins 3 months before the date on which the license would otherwise expire
• Ends one month before the date on which the license would otherwise expire

Licenses to operate are categorized, with their distinctions being as follows:

• Non-remote – for all other land-based gambling businesses
• Remote – for a range of online gambling activities
• Ancillary – for gambling operators providing telephone and email betting

Operating licences are also activity-specific, each with differing rights and limitations, which normally will require you to hold a different licence for near enough every different variation of a gambling activity that is sold to consumers in Great Britain. Note that we can help you determine what license you will need for your business in a custom consultation.

Operating licenses are divided on the basis of the following activities, namely:

• Licenses for arcades activities
• Licenses for betting activities
• Licenses for bingo activities
• Licenses for casino activities
• Licenses for gambling software activities
• Licenses for gaming machines activities
• Licenses for lottery activities

Each of the activities has many types of licenses with varied conditions and details regarding licensable gambling activities. They cover almost all gambling businesses, including family entertainment centers, plenty of betting business models, and gambling software services.

Application fees range from low to extremely high depending on the license type, annual gross gambling yield, and many other factors. They start from as little as 100 GBP, approx. 117 EUR, and can reach 91,686 GBP, approx. 107,000 EUR. Annual license fees also highly vary according to the type of license, annual gross gambling yield, and other factors. They start from 230 GBP, approx. 270 EUR, and can reach 793,729 GBP, approx. 927,000 EUR, plus 125,000 GBP, approx. 146,000 EUR for each complete additional 500 mill. GBP (approx. 584 mill. EUR) of annual gross gambling yield above 1 bill. GBP (approx. 1,2 bill. EUR). The complete list of fees is available here. The precise costs can be determined by utilizing the GC’s online calculator.

While the Operating License is expensive, remember that it may well pay off by giving you access to a huge gaming market. Immediately, your gambling business will get consumers’ trust since they believe that UK gaming operators are reliable due to serious player protection protocols. You’ll need to obtain an Operating License and, possibly, a Personal Management License.

Personal Management License

Individuals in qualifying management positions in a gambling business are required to obtain a Personal Management License. The application should be submitted at the same time as the Operating License is applied for. An application for PML usually takes up to 6 weeks to process, provided the application is completely complete. You should note that licensable PML responsibilities can be performed only after the license has been issued.

You need to apply for a PML if you have specific responsibilities for any of the following areas within an Operating License holder:

• Overall strategy and delivery of gambling operations
• Financial planning, control and budgeting
• Marketing and commercial development
• Regulatory compliance
• Gambling-related IT services and security
• Management of Licensed activity for a specified area in the UK where you have 5 or more sets of premises you hold a Premises License for
• Leaking a single set of licensed premises for bingo and/or casino

Personal Functional License

Individuals performing a non-management function in a gambling organisation are obliged to obtain a Personal Functional Licence (PFL) by some. A PFL application will typically take up to 6 weeks to finalize assuming that an application form is complete. In that respect, it is the applicant’s responsibility – and not the employer’s – to comply with the relevant rules and regulations. On the other hand, a licensed operator is obliged to employ licensed people.

A person needs to have a PFL before they work as any of the following at a gambling company:

• A dealer or croupier
• A cashier
• An inspector
• A pit boss or a gaming supervisor
• Security staff or monitoring surveillance related to gambling activities

Premises License

To provide premises-based gambling, for example, a bingo hall or a betting shop, you will need to obtain a Premises Licence from your local Licensing Authority. Your local Licensing Authority will usually be your local council, which may be identified here.

An application can only be made provided the following are satisfied:

• An applicant has the right to occupy gambling premises;
• An applicant has an Operative License allowing the operation of the gambling business

A provisional statement may be issued by the licensing authority if the premises are to be built, major alterations are to be carried out or an applicant does not have the right to occupy it. Companies with Gambling license in UK

Eligibility Requirements for Operating License Applicants

The eligibility criteria do not include conditions of incorporation in a particular jurisdiction and therefore any company, individual, or a group of individuals may apply for an Operating License. The License covers England, Scotland, and Wales.

The following are the requirements for application:

• Those operating the gambling business as individuals should have attained the age of 18 years before applying for a license.
• An applicant must provide an address in the UK at which a document under section 69 of the Gambling Act 2005 may be served.
• Anybody who has a 3% equity or more in the company must be named and the percentage of their holding shown.
• Anybody who holds 10% or more equity is classed as a financial controller and must supply an Annex A.
• A PML has to be acquired for persons in qualifying management positions of the company.
• The application must clearly state the activities to be licensed.
• The application must state whether the applicant has been convicted of a relevant or any other offense.

Generally, the following documents are required:

• Corporate documents, where applicable
• Business plan
• Audited accounts
• Profit and loss projections for the next 3 years
• Internal policies and procedures
• Customer terms and conditions
• Rules of play
• Where applicable, copies of licenses to conduct gambling from other jurisdictions
• Bank statements for all accounts for the last 6 months
• Proof of funding
• Credit report if the company is based overseas
• Certificates of criminal records of shareholders, directors, and beneficiaries

GAMBLING LICENSE IN THE UK

How to set up a gambling company in the UK

An Operating License applicant can be any legal business structure except that of a sole trader. Companies generally are governed by the Companies Act, 2006. Whether applying online or by post, this may take anything from 24 hours to 10 days either way, very efficient.

One of the most commonly utilized business structures in the UK is a Private Company Limited by Shares Ltd., suitable for small and medium-sized businesses. The basic requirements are at least one shareholder, who can be from any part of the world, and at least one director. There are no minimum share capital requirements. Where there is an intention to run a large-scale gambling business, incorporation of Plc is better. The minimum authorized and fully paid-up share capital is 50,000 GBP or approximately 58,400 EUR. There has to be at least 2 shareholders, 2 directors, and a company secretary.

In general, the following are the documents required for the registration of a new company:

• Memorandum of Association
• Articles of Association
• Application form for registration
• Copies of the passports of all the directors and shareholders
• Proof of the residential address of all the directors and the shareholders
• Proof of registered office address

Key steps of registering a new company in the UK include but are not limited to the following:

• Choosing a unique and compliant name
• Preparing incorporation and personal documents
• Registering a physical office in the UK
• Opening of a local corporate bank account and transferring required share capital
• Submitting an application to Companies House
• A Public Limited Company Plc also needs a separate application for the trading certificate from the Companies House for proving that it has raised the initial share capital.

Operating License Application Process

It takes about 4 months to process an Operating License application, assuming all the supporting documentation is provided and all relevant information can be verified. In order to evaluate an application, what the Gambling Commission primarily tries to understand is whether the applicant’s business will retain the objectives of licensing and whether the applicant is suitable to carry out the licensed activities.

Therefore, the authority tries to verify the ownership of the company, identity of the shareholders, evaluate the financial standing and sources, fully investigate the integrity, competencies, and criminal records of relevant persons. In regard to the incompletely or incorrectly submitted documents of any information mentioned hereinabove, it will delay the process and may lead to rejection. We strongly suggest consulting our team in advance in order not to get undesirable results.

The main steps involved in the licensing application procedure include the following:

• The preparation of all the necessary documents according to regulations
• The payment of an appropriate application fee, or multiple fees if applicable
• The submission of the application form along with the necessary documents either to the GC or the applicant’s local licensing authority
• The provision of supplementary information when requested by the GC
• The payment of the first annual license fee

Requirements for Licensees

All the holders of an Operating License are subject to the provisions concerning anti-money laundering, counter-terrorist financing, responsible gambling, and all the related areas in which we can assist you. As we have already said, all these regulations serve to build trust in the eyes of the customers and will eventually have a positive effect on the bottom line of the company.

Importantly, all licensees of the Operating License have a duty to protect minors from engaging in gambling. Therefore, any person commits an offence if they invite, cause, or permit a child or young person to gamble. The invitation ways relate to sending to a child or young person any document which advertises gambling or brings to the attention of a child or young person information about gambling with a view to encouraging them to gamble.

Under the Code on Social Responsibility, all non-remote operators holding a Premises License in the arcade, betting, bingo, and casino sectors have to be part of one multi-operator self-exclusion scheme or another. Failure to do so might result in an operator’s license reviewed by the GC and taking, if need be, a decision to suspend, revoke, or impose a financial penalty on the license. Additionally, one can even prosecute a non-compliant operator.

Further, in order for a gambling operator not to commit offenses under POCA, it must make reports to NCA upon knowledge or suspicion of money laundering or terrorist financing on the part of a customer and, where a defense is requested, await such defense to deal with a transaction or an arrangement involving the customer or await the expiration of a specified period of time before dealing with it.

If you feel this is the proper jurisdiction for you, our staff here at Regulated United Europe would be happy to help you obtain your UK gambling license and, when required, set up a UK or any other country of your choice company. With the presence of dedicated legal advisors, tax experts, and financial accountants by your side, all incorporation and application processes will be truly effortless, seamless, and crystal clear. Contact us today to set up a personal consultation, and let’s build a foundation for enduring success.

Also, lawyers from Regulated United Europe provide legal services for obtaining a crypto license in Europe.