Money and rights
The remaining third are known as “ticket-out Category D slot machines” and are limited to a 30p stake and the equivalent of a prize worth up to £8. There are two types of Category D slot style machines, those that pay out winnings as money, and those that pay out tickets. A similar conclusion was reached by the House of Lords Select Committee, which noted that banning children from using Category D machines could have a “devastating impact on individuals, businesses and communities”. Category D machines include a diverse range of low stake and prize machines such as coin pushers, crane grabs and slot style machines (also known as fruit style machines).
The Gambling (Licensing and Advertising) Act 2014 shifted remote gambling to a point-of-consumption approach. It establishes the Gambling Commission as the central regulator for Great Britain, sets the three licensing objectives, and provides for compliance oversight and information gathering. The three licensing objectives are the lens through which the UKGC assesses every regulatory decision. The Gambling Act 2005 defines remote communication broadly, including internet, telephone, television, radio, and other electronic communication methods.
From the early days of underground gambling dens to the modern era of licensed casinos, the UK has witnessed significant changes in the way casinos are regulated and operated. The ban took effect on 14 April 2020 and applies to nearly all online and land-based gambling establishments. Another measure aimed primarily at online operators is the ban on gambling with credit cards. All online casinos must participate in the multi-operator self-exclusion scheme GAMSTOP, the UKGC announced in January 2020.
However, non gamestop casinos as outlined below, more deprived communities have higher rates of people experiencing problem gambling. When all forms of gambling are considered together, participation is higher among men (57.4% of men surveyed in England between 2012 and 2018 had gambled in the previous 12 months) than women (50.7%). The National Lottery has had a broad customer base since its launch in 1994 and remains the most popular gambling product (see Figure 2 below).
The vast majority of submissions to the call for evidence from outside of industry supported a substantial increase in the Gambling Commission’s fees, and an increase in flexibility, to enhance its effective regulation of the gambling industry. Submissions from industry and campaign groups differed on whether there is currently a significant black market for gambling or a risk of one emerging. The government hopes that this approach will raise standards across the industry and therefore ensure that customers are protected adequately and that gambling is free from crime. In a market where the largest companies account for a large proportion of gambling, the Commission will also explore options for an enhanced account-based compliance approach that will include dedicated team members assigned to the largest operators on a permanent basis. This will include more active oversight of operators beyond the Commission’s current approach, which requires operators to report key information on a regular basis but targets compliance activity and checks on a risk-based and intelligence-led basis. We also note that compliance with voluntary codes may be relevant in deciding operators’ suitability to hold a gambling licence during Gambling Commission enforcement action.
Processing of personal data will continue to be required in order to achieve compliance with a gambling licence. Where licensees have genuine well-founded concerns about GDPR, we are committed to working with industry to get the right outcome – one that safeguards personal data whilst also promoting the licensing objectives. GDPR should not be improperly used as an excuse to avoid taking steps which enable compliance with licence conditions, promote socially responsible gambling, and promote the licensing objectives. We take the view that GDPR is not intended to prevent operators from taking steps which are necessary in the public interest, or are necessary to comply with regulatory requirements under a gambling licence.
On the 17th of January 2025, the way that online casinos market to their existing players will change. In late 2024, one of the biggest changes to happen with online casinos in the UK was rolled out. These regulations only apply to online casinos licensed in the United Kingdom. In conjunction with the government, the UK Gambling Commission (UKGC) is always looking at ways that patrons at online casinos can be better protected.
We will consider further the potential for allowing a wider range of games on electronic terminals at casinos, subject to appropriate restrictions. We have looked at the experience of the licences created under the 2005 Act and intend to extend some of their rules to the wider casino estate. However, in the light of developments in technology and the availability of online gambling, the characteristics of the product and quality of monitoring have now assumed greater importance.
Brexit did increase compliance complexity around personal data transfers between the UK and EEA, which is relevant for cross-border remote operators. The case illustrates that the Commission uses criminal enforcement for unlicensed provision, particularly where products resemble gambling but operate outside the traditional licensing perimeter. The government duty change document sets out the 2027 remote betting duty plan as part of broader gambling duty reforms. HMRC administers multiple gambling duties, levied on operators’ gross profits (stakes received less prizes paid out) or stakes, depending on the regime.
Additionally, some gambling products enable charities and other non-commercial organisations such as sports clubs to raise valuable funds. Horse racing in particular has a mutually beneficial relationship with betting, and the levy paid by bookmakers on their racing derived revenue contributes around £100 million a year to support the sport. While many gambling companies do operate overseas hubs, the jobs in this country are geographically dispersed, with hubs of high skill work in areas like Stoke-on-Trent and Leeds. For the majority of people in the Gambling Commission’s research, gambling was just another normal activity which they reported feeling completely in control of. For most people who participate, gambling is a leisure and entertainment activity, as explored in the Gambling Commission’s research into why people gamble and its research into customer journeys. In addition to the approximately 300,000 people categorised as ‘problem gamblers’, there are approximately 1.8 million people in Great Britain categorised as ‘at risk’.
You may also contact them to seek independent advice about data protection, privacy and data sharing. If you believe that your personal data has been misused or mishandled, you may make a complaint to the Information Commissioner, who is an independent regulator. If you’re unhappy with the way we have handled your personal data and want to make a complaint, please write to the department’s Data Protection Officer using the details above.
Prize draws in the digital age
They argued that given they are not proposing to increase the level of prize, there would be no significant changes to the maths of the gambling offer for the player, but that it would allow a more varied customer experience. They also included a proposal for an ‘entertainment with prizes’ machine game which could have a longer game time and multiple stakes, which would also not be permitted by current stake and prize limits. This review will consider the effects of any legislative change following the Gambling Act Review and, where appropriate, will consolidate the progress made so far by the industry on a voluntary basis. Apps could be helpful in bringing in safer gambling controls to cashless payments, but we acknowledge this is most likely to be one option for payment, rather than the only alternative to cash. Operators have said that they believe that apps are useful in giving customers increased choice in payment type, but are not a fix-all solution due to their low take-up.
- Both policy options are variations of Option 2, meaning that they focus on addressing the practice of operators siting increased numbers of Category B cabinet gaming machines by making lower staking Category C and D content available on in-fill and tablet gaming machines.
- These are the most comprehensive reforms to the gambling sector since the Gambling Act was introduced in 2005, and delivers on the 2019 manifesto commitment to review this act.
- A consultation will allow the industry to respond to any principles and specific requirements that the government and Gambling Commission require in order to ensure that the introduction of cashless payments does not lead to an increase in risk to consumers.
- The gambling sector is no stranger to change, with technological advancements and societal attitudes constantly reshaping its framework.
In the event that one or more unused licences will be reallocated, we will consult on a process for local authorities to express interest in developing a casino in their area, including on the criteria against which expressions of interest should be evaluated. Both of these options would require a process to be put in place to enable a licensing authority to apply for the right to issue a casino licence in its licensing area. 1968 Act licences can move premises within a licensing authority (with agreement from the licensing authority), whereas 2005 Act licences cannot once they have been allocated to specific locations. It is not possible to create any new 1968 Act licences as these were superseded by the 2005 Act system, which preserved 1968 Act casinos on an open-ended basis.
This suggests a relatively similar level of binge gambling across both machine categories. Data on session duration shows that, in general, players spend a similar amount of time on Category B machines as Category C and D machines. The data used in this section reflects activity from April to September 2019 and relates to a single session on a particular machine.
In NatCen’s Patterns of Play dataset for online gambling, men account for 74% (on a weighted basis) of online gamblers whose gender was recorded. Streaming of live horse races is a key product for betting shops and online operators, and will remain so. A consultancy study commissioned by the racing industry and shared with DCMS after the call for evidence concluded that in 2022 the levy represents around 6% of total income to horse racing.
This is viewed as a more proportionate table gaming area compared to other floor space requirements, and will ensure parity with 1968 Act casinos. Small 2005 Act casinos will also experience a reduction in their required minimum table gaming area, from 500sqm to 250sqm. This will ensure that only distinct and sizeable table gaming areas can count towards the total, giving customers a genuine mix of products that are easily accessible and identifiable in a casino. Despite respondents indicating a preference for venues to be made to reduce their gambling area, we think this is a fair exemption for the small number of casinos that it will apply to.
Evidence we received from one researcher suggests that just 6.6% of academic papers published containing empirical research on gambling behaviours and policies between 2019 and March 2021 were from British-based researchers. Gambling may cause or contribute to poor mental health and wellbeing for some people, but for others, poor mental health may cause or contribute to harmful gambling. The relationship between gambling and some harms, such as mental health issues, is not always straightforward and can be bi-directional.
4 Machine games and licensed bingo premises
Conversely, a number of think tanks and campaigners have proposed far more expansive SCV solutions, involving the pooling of every customer’s online and potentially offline play data for analysis by an independent public body which flags concerns and directs operator interventions. As part of the trial, codes of practice are being developed to ensure operators respond appropriately when they are notified of customers in this situation. While supportive in principle, industry initially had concerns regarding potential data protection and privacy implications. For example, a person showing signs or disclosing that their gambling is out of control could have their account closed by one operator doing the right thing to prevent harm, but within minutes they could have a new account with a different operator and a ‘blank slate’.
Since 2018, the Gambling Commission has worked with stakeholders including training providers and the Home Office to emphasise legal requirements in training materials and guidance for the sector. The government expects the sector to prioritise and rapidly strengthen age verification procedures to ensure that children are properly safeguarded from illegal gambling through on-course bookmakers. For example in 2019, a test purchase operation at Royal Ascot found that 7 out of 17 bookmakers accepted bets from underage customers.
According to evidence from the Betting and Gaming Council, casinos received more than 17 million customer visits in 2019, including a large number of visits from tourists and overseas customers. Around 45 current 1968 Act casinos meet the minimum overall size and non-gambling space requirements for a 2005 Act Small casino and would therefore be able to offer a maximum of 80 machines. Casinos originally licensed under 1968 Act provisions are limited to 20 Category B gaming machines regardless of size, and a Small 2005 Act casino would need 40 tables to be allowed 80 gaming machines whereas a large would only need 16. Its final recommendation in this area is that any move towards the use of debit cards on gaming machines should strike an appropriate balance between regulation applicable to modern payment methods, consumer benefits and protection of the licensing objectives. The first recommendation focuses on the importance of account-based play in protecting customers in land-based settings, asking the government to encourage operators to use such technology to identify and protect customers at risk of harm, subject to a proportionate approach.
The Commission also took action to suspend three operator licences and revoked one licence during this period. These included more flexible regulatory powers to allow it to quickly introduce new changes when necessary, more access to player data and greater powers to tackle the black market. In particular, some industry submissions said the Commission needed to improve its transparency, evaluation of its work and how it works with the industry. Many submissions to our call for evidence agreed that the Gambling Commission has wide-ranging and sufficient powers to effect change in operator behaviour. While the requirement to contribute is mandatory as set out in the LCCP, industry has discretion over the amount and the destination as long as recipients are on a list of bodies approved by the Gambling Commission. Most sites are based in overseas jurisdictions where prosecution would be impractical; while the Commission has partnerships with overseas regulators, its main method of dealing with illegal sites currently is to undertake disruption activity via internet service providers (ISPs), platforms and payment providers.
Further, it is our view that much of the foregone revenue is likely to be that which was coming from financially vulnerable customers or those who were gambling at significantly unaffordable levels, although this is hard to quantify. Industry estimates based on previous trials are that between 70% and 90% of customers would not comply with requests for such documents to be shared. Industry and racing stakeholders have raised particular concerns that should checks require documents such as payslips or bank statements to be provided to operators, then most people would refuse and instead gamble elsewhere, including with unlicensed operators. The specific thresholds and proposals below are based on the premise that frictionless checks will facilitate operators gathering the necessary information without disruption to the customer experience, for instance through needing to ask for payslips or bank statements as some operators do now. It is for the Gambling Commission to decide whether existing licence conditions and codes of practice are being met by operators, and the inclusion of proposals in this white paper does not in itself create new obligations.
Anti-money laundering and welfare checks
However, owing to a change of thinking and a desire to generate some tax revenue from online operators, the UK decided to take matters into its own hands. Through a combination of tight controls, high quality operators and technological innovation, UK iGaming has always been a leading light in the global industry. The UK’s iGaming industry has always been held up as an example of quality when compared to other gambling jurisdictions. This applies to all online and offline gambling services. Since April 2020, it has been illegal for UK-licensed gambling operators to accept credit card deposits. Ensure the licence is active and covers “remote casino” activities.
You can apply to us for a licence to provide casino games in a premises (non-remote) or online (remote). Please note that the Commission expects that all customers in casino premises are treated as casino customers under the Regulations. When applying for a licence variation to add betting activity, an updated risk assessment and updated policies, procedures and controls documentation will need to be supplied to the Commission.
The UK Gambling Commission plays a crucial role in regulating and overseeing all gambling activities to ensure fairness, safety, and compliance across the industry. New rules target addictive features in online casino games to promote safer play. These limits apply per game cycle and are designed to reduce gambling-related harm. Wiggin serves as the leading advisor to the global gambling industry’s top players, setting itself apart by understanding both national and international laws and regulations like no other firm. The firm’s Brussels office provides legal support and lobbies EU decision-makers on behalf of clients on a wide range of matters, including EU copyright, audio-visual regulation, data protection, competition policy, trade and e-commerce.
Equally, evidence suggests that young people and young adults are particularly prone to benchmark their own gambling against that of their peers, but often overestimate peer gambling participation. Evidence and proposals regarding age and identity verification to access and make deposits into online gambling accounts are covered in our proposals for online gambling in Chapter 1. As outlined above, the evidence we received suggests that online age verification is currently effective as long as the details of an adult are not being used fraudulently or with that adult’s permission.
Anecdotal evidence shows that only three of the 2005 Act casinos offer betting, representing about 0.2% of the total GGY for each of those casino premises. As outlined in the table below, we propose that casinos with a gambling area of 280sqm or less are allowed 16 machines, increasing by two machines for every additional 20sqm of gambling space, up to 40 machines. We propose that the number of machines is limited, based on the overall gambling area of the casino.