OBTAINING A UK GAMBLING LICENSE

In this article, we will continue to talk about the licensing of the gaming industry, since the gambling market is in a constant process of development, improvement of legislation, strengthening of control and responsibility for illegal conduct of such activities.

The team of the legal company “Prikhodko and Partners” regularly monitors changes in this area and is ready to provide qualified advice on choosing the appropriate jurisdiction for obtaining a gambling license, taking into account your experience, business model, type of activity, material resources, and personal wishes.

Recently, it is no longer enough to work in the markets of developed countries and completely legally hold an international gaming license obtained in one of the jurisdictions such as  Malta, Curacao, Gibraltar, Costa Rica, Isle of Man, etc.

More and more states are introducing requirements for obtaining national gambling licenses in order to increase local taxes, finance national programs for health care, social sphere, and environmental projects, and increase the degree of protection of users’ rights.

One of these countries is Great Britain, which has its advantages, which include a developed legislative framework, jurisdictional prestige, functionality, long experience in regulating the gaming industry (in 1190, King Richard of England passed the first law on gambling. According to which only nobles could bet a maximum of 20 shillings per day), as well as its disadvantages, such as the time it took to obtain a license, its cost, and strict control by the local regulator regarding compliance with the requirements of licensed activities.

So, let’s dive deeper and consider the intricacies of licensing the gambling business in Great Britain, in particular: licensing procedure, types and types of gaming activities subject to licensing, review periods, fees, and taxes.

Licensing gambling business

Companies registered in the UK or offering their services to UK players are required to obtain one or more local gambling licenses from the UK Gambling Commission, the government regulatory body that oversees gaming and operates under the law “About Gambling 2005” ( Gambling Act 2005 ).

Types licenses

Commission with gamblers Igor gives out different types of licenses for relevant species of gambling activity

• Operating license  –  required for companies  that offer gambling services to users, which include:

1. Arcades – for adults and family gaming/entertainment centers;
2. Betting – license for pond on real or virtual events;
3. Bingo – license on carrying out Igor in bingo;
4. Casino – license to supply Igor for casino and license on hosting Igor;
5. Software for gamblers Igor – license on granting software gaming support and separate licenses for related software;
6. Gaming automatic machines – license on machines, bookmakers terminals, slot machines, video poker machines, and similar gaming equipment;
7. Lotteries – license for the lottery.

• License for personal management – necessary for persons who hold key positions in the gambling business and perform more than one of the functions specified below:

1. definition of general strategies and realization activities;
2. financial planning, CONTROL, and budgeting;
3. marketing and commercial development;
4. regulatory compliance;
5. IT software and security, are related to gamblers’ games;
6. management licensed activity, if in you is five or more premises, on which have a license to play bingo and/or casino.

• Personal functional license – necessary if you perform in the roles:

1. dealer/croupier;
2. cashier;
3. inspector;
4. game supervisor;
5. an employee services security/monitoring observation, related to gaming

• Premises license – required when premises are used to organize and conduct gambling, such as casinos and bookmakers. Premises licenses are issued by the licensing authority responsible for the area (territory) where the relevant premises are located.

Each type of license has specific requirements and rules adapted to the nature of the gambling activity it covers.

Order and conditions for receiving license on playing business

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 the information and documents listed below:

• schemes structure-property and management;
• politicians and procedures which should answer standards, installed document License Conditions and Codes of Practice or LCCP;
• rules games and conditions for users;
• copies any other licenses (by availability);
• banking extract by the last 6 months;
• a business plan, forecast profits and expenses for three years;
• confirmation financing;
• responsible by management by the company persons should provide a Personal license for management (Personal Management Licence, PML) and/or application with my personal statement, depending on specific conditions;
• politicians know their own the client (KYC) and struggle with washing money (AML);

The Gambling Commission may request additional documents from the applicant and/or clarify the submitted information.

Usually, Commission considers applications on issuing licenses for 4 months with a moment presentation.

Along with submitting the application, a license fee is paid, the amount of which is calculated according to the types of gaming activities. With the help of the calculator, you can calculate how much the company will have to pay for obtaining a license.

Meeting, contributions, and taxes

The taxes, application fees, and annual license fees vary and depend on the type of gaming activity and the gross revenue generated by the company from gambling.

For example, for companies who own an online casino/bingo, rates on virtual events are divided into nine groups depending on gross income. Companies with a gross income of less than £550,000 must pay contribution by presentation statements in size 4224-pound sterling and annual contribution in size £4,199.

Companies with gross income – of £1 billion and more, for filing an application must pay – 91686-pound sterling, an annual contribution in size of 793729-pound sterling, and 125 000 by each of the following £500 million gross income

The initial term of the license is five years, which can be extended by submitting a new application and confirming compliance with the relevant norms and requirements.

Summing up, it can be argued that prior to the choice of the British jurisdiction for conducting licensing activities in the field gambling should be approached carefully weighing everything risks, disadvantages, and advantages.

Experienced fintech lawyers company “Prikhodko and Partners” are always ready to provide professional legal advice. We understand that each client has unique needs, so we are ready to prepare an individual solution, taking into account your current situation, capabilities, and wishes.

Our experts will help you choose the right type of gambling license and jurisdiction. We will prepare the necessary package of documents and provide full legal support for the procedure for obtaining a license.