UKGC Licensed Casinos

Types of UKGC Licences

The United Kingdom Gambling Commission issues 3 types of licences:

• An operating licence
• A personal functional licence
• A personal management licence

There’s a fourth licence, a premises licence, not issued by the UKGC. Operators must get this permit from their local licensing authority.

Operating Licences

The Gambling Commission offers 3 types of operating licences:

• Ancillary (telephone and email betting)
• Remote
• Non-remote.

Depending on the nature of the business, an operator may need one of these permits. Sometimes, a casino operator may need to combine these licences. If, for example, a company offers online and physical gambling, they’ll need remote and non-remote licences.

Personal Functional Licence

You must have this licence to work as

• A dealer
• An inspector
• A gaming supervisor
• A cashier
• Security staff

The processing time for this type of licence takes about 8 weeks. That is, if everything goes smoothly. If there are issues with the application, it could take longer.
The personal functional licence is not expensive. It costs around £185. Applicants must pay this fee via debit or credit card online (Visa Electron and American Express not accepted).

Personal Management Licence

Like the personal functional licence, this type of licence also takes about 8 weeks. It applies to people involved in the following activities:

• The overall strategy of gaming operations
• Regulatory compliance
• Management of a casino premise/single-set bingo
• Management of activities in over 5 casino premises
• Financial planning and control
• IT provision

This type of licence costs around £370. You’ll only need one personal management licence regardless of the number of activities you oversee.

Premises Licence

If an operator runs a betting shop, arcade, or bingo hall, they’ll need a premises licence. But there’s a catch. Before applying for it, you must apply for the operating licence.
After applying for a premises licence, the operator must notify the following:

• The UK Gambling Commission
• Their local police or chief
• Their local environmental health department
• HM Revenue and Customs
• Their local planning authority

Before granting licences, the Gambling Commission considers several factors. These include an applicant’s competence, their source of funds, and integrity. The commission also checks the operator’s criminal Record and identity and ownership details.

Getting a UKGC License

Applicants submitting applications to the UKGC must have a business plan. Otherwise, the regulator will decline the application. A strong business plan shows the owner knows what they want to accomplish and how to get there.

Operators also need to pay attention to safety procedures and responsible gaming. This entails providing information and solutions for players who struggle with gambling addiction. Some of the safety measures include deposit limitations and self-exclusion.

Additionally, the casino website should be safe. It should utilise tools like SSL encryption to protect the financial and personal data of its users.
It's also crucial to put strong anti-money laundering and fraud prevention measures in place. These include KYC and AML programs.

By performing due diligence and transaction monitoring, operators can help identify and reduce gambling-related crime and fraud. Another thing: applicants must stay up to date on industry rules and best practices.

Reporting Requirements and Compliance

All holders of UKGC licences are subject to regulatory requirements that must always be followed. These responsibilities include keeping integrity in all facets of their business dealings. They should also keep correct records and provide customers with timely updates on important information.

Furthermore, UKGC-licensed operators must ensure their services are equitable and secure. They should be open to the public while actively preventing problem gambling.

If these requirements are not met, there may be severe repercussions. These include steep fines, licence suspension, and aggressive legal action (more on this later).

Licence Fees and Taxes

Based on their GGY (Gross Gambling Yield), companies are categorised into different groups for licensing purposes. A gambling operator with less than £550k GGY will part with a licence application fee of £4,224. They’ll also need to pay an annual fee of £4,199.

Meanwhile, operators with a £1 billion GGY are required to pay an annual fee of £793,729. They must also part with an application fee of £91,686.

For any licensee to conduct business lawfully, the commission mandates that they comply with the Point of Consumption Tax (POCT). The tax was implemented in 2014.

POCT entails paying taxes on all winnings from gaming operations regardless of the operator's location. The tax has had a significant influence on the gambling sector in the UK. To be compliant, operators must adjust and adhere to the changing tax regulations.

Renewing Licences

Renewing a licence follows the same process as submitting a new application. A renewal application must be submitted no later than two months before the licence expires.

The following reasons could result in the commission declining to renew a permit:

• If the operator has not met the licence requirements for the renewal.
• If a local government official has been barred from entry to the property without a valid reason.

A licence holder's permit may also be revoked in the following situations:

• The licence holder can't perform licensed activities per the licence requirements.
• The licensee's financial situation has not pleased the commission.
• The licensee's competence has not satisfied the commission.
• The commission thinks there has been a violation of one or more licence terms.

In most cases, the UKGC notifies the licence holder of its decision about their permit. A decision may be appealed by the licensee if:

• They are given a warning or a fine.
• Their application for a licence has been denied.
• They now have a suspended or cancelled licence.
• Their licensing terms have changed.

Factors that May Lead the UKGC to Punish a Licensed Casino

There are 5 most common regulatory actions the UKGC may take against casino operators. These are:

• Fines
• Issuing warnings
• Licence suspension
• Licence revocation
• Business suspension

Before taking the above measures, the commission must carry out extensive investigations. Here are some of the factors that may lead to punishment of offending operators:

• Failure to take part in GAMSTOP
  Misleading advertisements
• Social responsibility failures
• Money laundering failures
• Invalid licence
• Control and governance failings
• Unfair treatment of consumers

Dispute Resolution

When gambling online, you may be unable to withdraw your winnings. Sometimes, your account may be closed without your knowledge or consent. Other common types of complaints at UKGC-licensed casinos include issues regarding:

• The payout amount
• Termination of your account
• Unfair bonus deals
• How your payments were handled
• IT issues
• Problems with customer support

In such cases, you may want to air out your complaints. It is critical to understand that there is a dispute resolution procedure available at UK online casinos. Similarly, operators holding licences must have a clear, simple-to-understand dispute resolution process. It should be in line with the UKGC laws.
Speaking to the casino directly about the problem is the first step in resolving conflicts. Any issues you may have should be handled by the customer support team at the casino.

Let's say you don't get a satisfactory answer or solution. In this case, you can take the issue to a third party. We’re talking about Alternative Dispute Resolution (ADR) providers here. Good examples are AskGamblers and Casino Guru. They are impartial mediators between you and the casino.

How to File a Complaint Against a UKGC-Licensed Casino

According to research by the UKGC, 8% of UK players have never made a complaint against a gambling site. Meanwhile, 4% have always wanted to file a complaint but didn’t. When submitting complaints against a UK casino, here’s the step-by-step process to follow:

• Review the casino’s terms and conditions: Let’s be honest; you could be blaming the casino, yet you’re the problem. The answer to your queries could be in the fine print. But if you’ve read the T&Cs and still think the casino is the problem…
• Contact the casino: There are plenty of ways to contact the casino’s customer support. You could use the live chat option, email, telephone, or any other channel available. Instead of stating your concerns directly, you could ask for the casino’s complaints policy first.
• File your complaint: Provide the casino with all the details of your issue, including the dates, times, and transactions. Also, provide any supporting documentation you have for your complaint. Ensure you maintain a copy of all the information you share with them.
• Wait for the casino’s reply: The UKGC usually gives gaming operators eight weeks from the date of receipt to address your complaint. They will notify you of the investigation's findings and the following steps after it is finished. This covers what to do (perhaps forwarding it to someone higher in the gaming industry) if you are not happy with the outcome.
• Not happy? Escalate the matter to the ADR: Reaching out to an ADR is the final step. You can’t reach out to the ADR without first navigating the complaint procedure of the gaming establishment.

UKGC 2023 Reforms

In May 2023, the UKGC revised its License Conditions and Codes of Practice. According to the update, all licensees must confirm the age of every client before they access demo versions.

Notably, affiliate marketing websites have been offering free-to-play versions of real money games on their websites. They’ve not been requiring prospective players to complete the age verification process. This has been a major cause of the modifications.

According to the new reforms, licensees must ensure their gambling affiliates are subject to the new LLCP provisions. They must follow LLCP’s social responsibility code provision 1.1.2. The code holds licence owners accountable for the conduct of affiliate marketers.

Other forms of advertising accessible on gambling affiliate websites are exempt from these new regulations. They include screenshots or videos of the games.

The reason for the exemption is that the user and content don’t interact at all. Additionally, in these instances, there is no gambling activity taking place among the guests.

B2B providers are exempt from the new regulations. This only applies if they provide demo copies of their games to other companies rather than to customers.