Gambling in the United Kingdom

Britain’s gambling market is one of the largest regulated markets in the world. Gambling is a popular leisure activity that is enjoyed by many. Annual Report (April 1, 2018 to March 31, 2019) shows that approximately 24 million adults gambled in Britain in 2018/19. Gambling profits are constantly growing, and public participation is increasing.

Under the Gambling Act 2005, gambling includes playing the lottery, bingo, betting on sports, casino games, and playing gaming machines. In Great Britain, there are 8,423 betting shops, 152 casinos, 650 bingo premises, 181,813 gaming machines, and 1,639 licensed arcades. Generally, the minimum legal age to gamble in the United Kingdom (UK) is 18. This applies to licensed gambling business: adult gaming centers, betting shops, bingo halls, casinos, racetracks, and online gambling. Lotteries differ from other types of gambling activity in that the minimum participation age is 16.

In 2018/19, total Gross Gaming Yield (percentage of wagers kept by casinos/gaming operators) of British gambling industry was GBP 14.4billion. GBP 1.6 billion was generated for good causes by the National Lottery.

Regulation

The Gambling Act 2005 (as amended) and he National Lottery Act 1993 (as amended by the National Lottery Act 1998 and the National Lottery Act 2006) regulate gambling in the UK. Under the Gambling Act, the UK Gambling Commission was set up to regulate commercial gambling in the country in partnership with local licensing authorities. In 2013, the National Lottery Commission merged with the Gambling Commission.

Although the Gambling Commissions of the British Overseas Territories (Gibraltar) and major islands (Alderney, Jersey, Isle of Man) are independent statutory boards, they must comply with the UK Gambling Commission. Thus, the UK Gambling Commission regulates all types of gambling that use British-based equipment.

Land based gambling

Resort casinos

Casino games are available in casino premises. There are 152 licensed casinos in Britain. Most casinos offer a variety of international table games, poker, electronic games, and gaming machines. The Gambling Act differentiates between ‘large’ and ‘small’ casinos. A small casino has a minimum table gaming area of 500 m2 and a minimum non-gambling area of 250 m2 . It has a maximum of 80 gaming machines. A large casino has a minimum table gaming area of 1,000 m2 and a minimum non-gambling area of 500 m2 . It has a maximum of 150 gaming machines.

Gaming machines

Gaming arcades operate all over the country. Adult gaming centers (AGC) are for only those aged 18 and over. Family entertainment centers (FEC) are open to all ages. These arcades offer their visitors various gaming machines. Licensed arcades do not sell alcohol, as there is strong evidence of the relationship between alcohol consumption and gambling problems. Arcades provide their guests with nonalcoholic drinks only.

Pubs may also set up a limited number of gaming machines. Under the Code of Practice for gaming machines in premises with an alcohol license, these machines must be situated in places where they can always be supervised.

Bingo

Bingo is played throughout Great Britain now. Bingo can be offered in pubs, members' clubs, miners’ welfare institutes and commercial clubs without an operating license. There are limits on the amount which can be charged for participation (GBP 1 to GBP 5 per person, per day). Both pubs and clubs must not exceed the maximum of GBP 2,000 per week in stakes.

Bingo halls can run prize bingo. To comply with the rules for prize gaming in bingo halls, the bingo games must have a maximum stake of GBP 1 and a prize worth no more than GBP 70 per game (in a venue where under 18s can be present) or have a maximum stake of GBP 1 and a prize worth no more than GBP 100 per game (in a venue where under 18s cannot stay). Under 18s are allowed in licensed commercial bingo halls, but they must not take part in playing bingo. Playing bingo is for adults only.

Lottery

The UK National Lottery, which was launched in 1994, has risen over £40 billion for good causes and paid out over £59 billion in prizes so far. The money generated by the National Lottery funds arts, heritage, sport, community and voluntary projects all over the UK as well as supports health, education and the environment projects. The National Lottery is run by a commercial company, Camelot UK Lotteries Limited which holds the license to operate the National Lottery until January 2023. National Lottery games consist of draw-based games (Lotto, EuroMillions, etc.), scratchcards with prices ranging between GBP 1 and GBP 5, and online interactive instant win games, which can range from GBP 0.25 to GBP 10. The National Lottery can be played at one of the National Lottery retailers (approximately 45,000) throughout the UK marked by the crossed fingers logo and online, using a mobile, tablet, at the National Lottery’s site, via the National Lottery app or via Pingit.

Betting

There is plenty of choice in the UK when it comes to finding a betting provider. Bookmaking began here with on-course betting and physical shops long before the Internet came along. Betting with the Tote and betting with a bookmaker are both popular in the country. Bets are usually made while watching any form of racing or sporting event on television in a betting shop. Some bettors prefer traditional getting in amongst the action on-course at a horse or greyhound meeting and placing bets in the on-course bookies before a race. Pool betting in Britain includes horse racing, football and other sports, and fantasy football-type competitions.

In the UK, a betting shop is a shop away from a racecourse (off-course) where one can legally place bets in person with a licensed bookmaker. There are numerous betting shops located throughout the UK. Most betting shops now offer free tea and coffee to attract punters. They usually have large televisions covering all the events. British book shops are modern places which offer facilities for making bets by means of self-service betting terminals (or betting machines). Now betting shops are also equipped with gaming machines to provide more gambling services. In addition to betting shops, many bookmakers also operate from within football grounds where bets are placed using pre-printed betting slips. Winnings from bets placed at these facilities can then be collected on site, by post, or from the bookshop.

No commercial betting at all is allowed in pubs and clubs. Accepting bets on behalf of licensed bookmakers by pub owners or club officials is illegal. It is illegal for bookmakers or their agents to sit in the pub taking bets themselves. Licensed bookmakers who knowingly accept bets from pub customers through a single account are encouraging illegal gambling. Licensed bookmakers may accept telephone bets from a customer watching an event in a pub or club, as long as that customer has an individual account with them.

Online gambling

The UK has been accepting stakes and bets via the telephone for decades. Online gambling has recently increased. The UK numerous islands do a lot to attract companies to set up their gambling businesses in their jurisdictions. According to the Annual Report 2018/19, Britain has the largest regulated online gambling market in the world. Approximately 10.5 million adults (more than 50% of consumers) gambled online in 2018/19.

The UK Gambling Commission has implemented new rules to strengthen age and ID verification checks. It encourages gambling operators to really ‘know their customer’ in order to protect them. Before transferring any money into a gambling account, the Gambling Commission asks gamblers to check if the organization they plan to gamble with is licensed. The Commission’s license register shows the type of activities online operators are allowed to offer as well as their address, website domain names, trading names and current license status. If a gambling business does not have a Gambling Commission license, it is acting illegally. Licensed online casinos may either belong to the national domain .uk or to commercial domains, such as .com and .biz.

Use of the Internet by entrepreneurs has transformed remote gambling. Many operators have located their businesses away from jurisdictions with heavy taxes to offshore centers with lower taxes. Island governments assist companies wishing to have a gaming presence on the islands. They actively encourage the development of gambling and e-gaming business. Local gambling commissions provide strong regulatory environment, supported by a wide range of attractive business benefits. In 2001, the Isle of Man Government was one of the first jurisdictions in the world to introduce legislation specifically designed to benefit gambling and e-gaming firms. Isle of Man, Gibraltar as well as some Channel Islands have been able to generate substantial revenues by offering such terms.