Licensing, compliance and enforcement under the Gambling Act 2005 3 Licensing
On 8 December 2020, the UK Government announced a long-awaited review of British gambling laws and a call for evidence to inform the potential extent of changes required to the Gambling Act 2005 in order to make the legislative framework “fit for the ‘digital age’”. In addition to the LCCP, the British regulator also publishes a large body of literature comprising regulatory advice, policies and guidance which licensees are expected to take account of.The financial regulation of gambling is set out mostly in the British Finance Acts and provides for various levels of duty upon different types of gambling. Local authorities (for Premises Licences).Sports/horse race betting (if regulated separately to other forms of betting)As above.As above.Fantasy betting (payment to back a ‘league’ or ‘portfolio’ selection over a period of time, for example in relation to sport)As above.As above.LotteriesLotteriesThe Gambling Commission.The Gambling Commission (for Operating Licences). In July 2026, the Gambling Commission faced backlash for newly announced affordability and responsible gambling checks, which critics described as “rushed, flawed and hugely problematic”. The demise of this site raised questions of the ability of the Commission to protect UK customers from rogue traders, although overall responsibility for UK online regulation was only given to the UKGC in November 2014.
Another large arcade operator estimated that a B3 cabinet gaming machine generates c.£600 per week, per machine. Evidence provided by arcade operators and the industry trade body Bacta suggested that this option would likely have a small but negative impact on GGY for many operators. The vast majority of responses came from industry representatives and local authorities, however, we also received a small number of responses from academics and individuals with lived experience of gambling-related harm. Also, Category C and D gaming machine device types made available for use must be of similar size and scale to Category B. The evidence generated was diverse and was indicative of the varied positions of stakeholders, primarily arcade and bingo operators and licensing authorities.
Germany Continues Licensing Casinos and Bookmakers Despite Interdiction
Where a machine is made available to take bets on virtual races, it is classified as a gaming machine and would therefore count towards the maximum permitted number of such machines. The white paper proposed that all casinos should have the ability to offer betting, should they wish to do so. Sportsbooks are also a common expectation for international visitors, and permitting betting in 1968 Act casinos would bring Britain’s casino product offering in line with other jurisdictions. Betting is permitted in 2005 Act casinos, which represent seven of the 122 casino premises open across Britain’s casino estate.
That said, non-gambling services are generally carved out of this wide net – payment processing, marketing affiliates and other ancillary services such as fraud prevention and age verification are per se not regarded as “gambling”. All gambling hosted by electronic means and available to persons in Great Britain must be licensed by the Gambling Commission. Affiliates are also coming under increased scrutiny (at least politically) and the links between gambling advertising and sport are likewise coming under increased political scrutiny. Where an operator is deemed to be seriously deficient, there is the possibility of a licence suspension and a small number of licensees have suffered licence suspensions.
We will give further consideration to these casinos having the option of reverting back to the existing (current) regime, as this will be a decision unavailable to 2005 Act Small casinos. We also acknowledge concerns about an increased availability of machines potentially leading to greater opportunities for gambling-related harm. Feedback from engagement with operators has indicated that the sliding scale as proposed would benefit the majority of casinos, with over 80% of casinos estimated to benefit depending on how floor space is reconfigured. Forty responses were received to this question, with 60% opposed to venues being able to hold multiple licences.
Sliding scale for gaming machine entitlements
On 29 March 2007, the House of Lords urged the Government to review plans for the super casino in Manchester. On 30 January 2007 Manchester was announced as the winning bid to be the location of the first super casino. James opened several casino-cum-cabaret and fine dining establishments in the 1960s, including the Charlie Chester Casino and Golden Horseshoe in London and the Kingsway and Grand Casino in Southport. Where a licensing authority issues a provisional statement following a two-stage determination process, they may limit the period of time for which the statement has effect.
The primary legislation governing gambling in Great Britain is the Gambling Act 2005. It is intended as an informational reference for operators, compliance professionals, and researchers. This guide covers the legal framework, licence types, application process, fees, ongoing compliance obligations, and the significant regulatory reforms that have reshaped the UK market between 2023 and 2026. The United Kingdom Gambling Commission (UKGC) is widely regarded as one of the most rigorous gambling regulators in the world. You can now view the full LCCP online, search, save, or print it off. The Licence conditions and codes of practice set out the requirements all licensees must meet in order to hold a Gambling Commission licence.
Verify the licence is current and matches the casino’s trading name All UKGC-licensed casinos must now prompt new customers to set deposit limits during the account registration process. However, the UKGC licence also provides access to one of the world’s largest regulated gambling markets and carries a level of credibility that few other jurisdictions can match. For operators seeking to access the UK market, the UKGC licence is a prerequisite. For a remote casino operator with GGY above £1 billion, the annual fee is £793,729 plus £125,000 for each complete additional £500 million of GGY above £1 billion.
The Gambling Commission’s guidance for licensing authorities. There are three types of licence that business owners may need, and in certain situations, your business may need all three. Different options to open legislation in order to view more content on screen at once This is the case even if you hold a licence in another jurisdiction.
Where 1968 Act casinos are smaller than these requirements, we have proposed that they are able to benefit from an increased number of machines on a pro rata basis commensurate with their size and non-gambling area, and subject to the same ratio. The rules have also incentivised holders of multiple 1968 Act casino licences to operate them as separate entities in the same premises for the purpose of increasing machine numbers. As outlined in the white paper, it is our intention to bring greater coherence to the licence system by allowing 1968 Act casinos of a certain size to have the same gaming machine allowance as Small 2005 Act casinos.
This amendment will mean that 1968 Act casinos that meet the same size requirements of Small 2005 Act casinos (subject to our final position on maximum size of gambling space) will be entitled to 80 gaming machines. In order for a 1968 Act casino to be entitled to 80 gaming machines, we propose that it must have a gambling area of at least 500sqm, the same minimum requirement for Small 2005 Act casinos. While we anticipate that many casinos of a suitable size will take up the option to increase their gaming machine allowances under these proposals, we are aware that some casinos will not want to site more than 20 gaming machines. Under the increased gaming machine allowances that we propose, if a venue held multiple premises licences, it could theoretically gain access to 80 gaming machines per licence. In order to be entitled to an allowance of 80 gaming machines, 1968 Act casinos will need to comply with the same minimum requirements as a Small 2005 Act casino on gambling, table gaming and non-gambling area. A further 25 casinos have multiple licences within one premises, allowing them to supply 40 or 60 machines.
The consultation proposed a number of measures with a view to modernising the regulation that applies to land-based casinos. This fee enables licensing authorities to fund their enforcement and administrative gambling duties on a cost recovery basis. We will increase the maximum premises licence fees which can be charged by local authorities by 15%. To ensure that this is enforced we will make it a criminal offence to invite, cause or permit someone under the age of 18 to use these machines.
This will act as a safeguard in case someone tries to put more than £100 onto the machine. It will also help mitigate against the risk of someone putting a significant sum of money onto a machine in one go. Using a debit card on a machine is a different experience for the customer compared to cash or tickets where a process such as going to an ATM has been undertaken before the person can put money onto the machine. The maximum transaction limit, aligned with a minimum transaction time, will provide an additional point of friction to the customer if they wish to put more than this amount onto the machine. However, customers can continue to deposit money onto the machine without needing to pause or undertake an action. Some responses stated it should be £1, in line with their view that cashless payments should not be permitted at all.
Arcades and bingo premises are subject to an 80/20 rule which governs the balance of Category B (maximum £2 stake) and Category C or D machines in these venues (up to a maximum £1 stake). With technological developments, land-based casinos have been able to introduce a greater range of customer protections and the experiences of applying these across each type of licence have provided insight on the likely impact of any proposed changes. Since the Gambling Act 2005, land-based casinos have operated under two licensing regimes with different requirements in terms of the type and volume of product they are able to offer, as well as venue size. By consulting the UKGC and legal experts, operators can build compliant, player-focused casinos that thrive in 2025 and beyond.
- Additionally, licensing is required even if a company’s online gambling operation is located in another country—so long as they provide services to gamblers in the UK.
- This activity may include inspecting gambling premises to ensure that they are complying with their licence or dealing with complaints from residents or neighbours.
- Should session time be visible at all times to the customer on machines accepting direct cashless payments?
- Without any requirement in law for a balanced offer, it is possible that this option would result in Category B machines becoming the only product on offer.
- The Gambling Commission is an executive, non-departmental public body of the Government of the United Kingdom responsible for regulating gambling and supervising gaming law in Great Britain.
They also stated that individual gambling businesses should be allowed to decide if they would like to update their systems to provide direct debit card payments as it would be a significant cost to businesses to update all machines to have this functionality. We expect that operators will ensure that Category C and D machines made available to meet the ratio are available for use and have genuine customer appeal. We received some responses which suggested that Option 1 would be preferable to Option 2(a) for ensuring that a genuine offer of Category C and D machines are made available to customers. In respect of ensuring that customers receive a genuine offer of Category C and D machines, Option 2 is the only option which we believe would achieve this objective better than Option 2(a).
The notes relating to prize gaming permits under Part 14 expand upon the meaning of “occupy” for these purposes. Regulations made under this section may also excuse licensing authorities from part or all of their duties to maintain a register and provide access to it. Regulations made by the Scottish Ministers dealing with the proceedings of licensing boards may make separate provision for the functions of the boards under the Licensing (Scotland) Act and under this Part. The procedures that apply to the proceedings of licensing boards in the exercise of their functions under that Act apply to the proceedings of those boards in relation to their functions under this Part. 422.In Scotland, licensing authorities are licensing boards established under section 1 of the Licensing (Scotland) Act 1976.
Small-scale operators (SSOs) may be exempt from the PML requirement and instead hold an Annex A authorisation. Individuals occupying specified management roles at licensed operators must hold a Personal Management Licence (PML). They cover areas including random number generation, game integrity, player account management, and responsible gambling tools. The LCCP is updated periodically; licence holders are expected to monitor and implement changes as they come into effect. The LCCP, issued under Section 24 of the Gambling Act 2005, is the central compliance document for all UKGC licence holders.
1968 Act casinos to be subject to a limit on the number of self-service betting terminals depending on their total gambling space. We propose that the number of machines is limited, based on the overall gambling area of the casino. These terminals are not gaming machines if they are designed or adapted for use to bet on future real events. The authorisations required may include a remote betting non gamstop casinos operating licence (required if customers are to be able to bet via Self-Service Betting Terminals), as well as a non-remote betting operating licence. In order to offer this, operators will be required to hold relevant operating licences from the Gambling Commission. Moreover, this measure would bring greater consistency to the different licensing regimes and bring greater parity between the online and land-based casinos.