The UK is one of the world’s main hubs for the gambling industry. This is due, among other things, to the fact that the process for obtaining a gambling license in Britain is clear, prices are reasonable, and regulation is meticulous and transparent. In the UK, depending on the type and specifics of your gambling-related activities, you can obtain a license of one category or another. Next, we will consider the features of the procedure for obtaining and the main advantages of this permit for further activities in the jurisdiction.
Our company are real experts in the field of establishing and licensing commercial structures. We will provide you with professional, comprehensive assistance in getting a gambling license in the UK, Malta, Curacao and other jurisdictions that are most welcoming to this industry.
Guide to Gambling License Application Process
Online gambling industry in the UK occupies a leading position both in Europe and in the world. Over the past few years, the gambling industry has shown good growth dynamics, and this is due both to the historical love of the British for gambling, and to a clear government policy to regulate this industry.
According to the UK gambling laws, the local Gambling Commission did not oblige operators to license their businesses in the UK until November 2014. For this reason, most operators preferred to obtain cheaper licenses from Malta or Gibraltar, while still being able to accept bets from UK players. However, in 2014, a law was passed obliging all operators who accept bets from UK players or who place their equipment locally to get a UK gaming license and pay taxes to the UK treasury in the amount of 15% of income.
To obtain a gambling license, the applicant must apply to the Gambling Commission, provide a detailed business plan, confirm the qualifications and impeccable business reputation of the responsible persons, their financial history and provide information and documents.
- ownership structure and management;
- policies and procedures that must meet the standard established by the License Conditions and Codes of Practice or LCCP document;
- rules of the game and conditions for users;
- copies of any other licenses (subject to availability);
- bank statement for the last 6 months;
- business plan, forecast of profits and expenses for three years;
- confirmation of financing;
- those responsible for the management of the company must provide a Personal Management License (PML) and/or a personal statement application, depending on the specific conditions;
- KYC and AML policies;
Gambling Commission may request additional documents from the applicant and/or clarify the information provided.
Steps for Obtaining a Gaming License and General Requirements
When considering an application, the UKGC assesses the applicant’s business intentions, its ability to fulfill its licensing obligations, and the availability of conditions for carrying out authorized activities. The purpose of the applicant’s application evaluation process is to obtain confirmation of identity and ownership, review the past and present financial history of all persons related to the application, including criminal records and qualifications.
Organizations located outside the country must provide a credit history. In case they already have licenses obtained in other jurisdictions, copies of these permitting documents must be provided.
According to the requirements for a gaming license, there is a list of basic documents that must be provided in any case:
- general rules and regulations (which must comply with the standards set by the License Conditions and Codes of Practice or LCCP);
- terms of use;
- rules of the game;
- bank statements from all accounts for the last 6 months;
- confirmation of funding;
- business plan and profit and loss forecast for the next three years.
In addition, those responsible for managing the business are required to provide a Personal Management License (PML) and/or a personal statement application, depending on the specific conditions.
Once an operating permit has been issued, the applicant undertakes to comply with all conditions and notify the commission of any important events, such as changes in company structure or ownership. In addition, an annual security check will be carried out.
Pros and Cons of UK Gaming License: Benefits and Challenges
There are plenty of benefits of holding a gaming license in UK. They can be expressed as follows.
- Good international reputation.
- Business transparency.
- Protection of persons addicted to gambling.
- A country with a stable legal system and fair justice.
- A clear progressive scale of licensing fees depending on the level of income of the gambling business and the type of permit to operate.
- Prevalence of incorporation.
However, there are also some challenges of obtaining a gaming license that entrepreneurs who want to choose Britain for their own commercial development may face.
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. The UKGC does not prohibit the open use of cryptocurrency as a payment method on licensed platforms. However, the anonymity of cryptocurrencies prevents operators from actually accepting digital coins while complying with the strict AML rules set by the UKGC.
Future Trends and Impact of Global Gaming Regulations
There are some changes that will set future trends in online gambling niche. Startups can now take advantage of the benefit for small gambling operators that employ three people or less. This exception does not oblige you to obtain permission to carry out personal management, but makes it possible to simply fill out the initial registration form.
Startups can apply for formal permission to develop internal software, provided the planned expenditure does not exceed £50,000 per year. If the limit is exceeded, a separate permit will be required. In addition, Britain is actively interacting with global gambling hubs in order to improve its own online gambling industry regulation.
You can avoid unnecessary time and moral costs if you seek help from our company to receive 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.
The article’s author is Denys Chernyshov – founder and CEO of the globally-famous organization Eternity Law International.
