UK Gambling Jurisdiction

UK Gambling Overview

Ever since the gambling industry opted to go online, there have been a number of different jurisdictions under which the countless online gambling websites are registered and licensed. While Kahnawake, Malta, Netherlands Antilles aka Curacao are some of the jurisdictions at the top of the list, there are a number of other jurisdictions as well, and one of them is the United Kingdom.

The UK is not just a jurisdiction for online gambling sites, online gambling itself is allowed in the UK too. This is unlike some of the other jurisdictions where, while casinos operating from foreign countries are granted licenses, online gambling itself is not permitted within the country. All the different kinds of online gambling activities, like online poker, online casino games, and sports as well as race betting are permitted here, and are regulated by the Gambling Commission of the UK, which was authorized as per the Gambling Act 2005.

The UK Gambling Act 2005

The UK Gambling Act 2005 did a lot to brig about a change in the traditional methods and notions of regulation that existed in the gambling industry in the UK. More importantly, it managed to bring under its ambit the online gambling industry, something that a lot of countries, including the US, have been trying hard to tackle successfully.

The Gambling Act 2005 effectively ushered in the modern era of gaming in the UK. One of the most significant aspects of this Act was the creation of the UK Gambling Commission, which has now become the official licensing and regulatory authority not only for traditional gambling in the country, but for the online form as well. This Act has also been able to effectively bring under its ambit gambling from mobile phones as well, something that is becoming increasingly common with the introduction of the concept of the ‘mobile casino.’

The success of the Gambling Commission and the Gambling Act 2005 is apparent when one takes a look at the number of online gambling sites currently in the UK – over 101 of them.

The Gambling Commission of the UK

The Gambling Commission of the UK was set up under the provisions of the UK Gambling Act 2005. One of the major challenges for this Commission, which it was able to tackle successfully, was the effective regulation of online gambling in the country.

Online gambling is banned in a number of countries across the world, and therefore, the decision by the UK government to regulate online gambling instead of banning it may, at first glance, seem a misplaced gesture. However, the bottom line is the numbers that are associated with online gambling. Regulating online gambling creates the potential for huge business, something that you lose out totally when you ban it.

The Gambling Commission grants two kinds of licenses – one for traditional/non-remote gambling and the other for remote gambling. There are certain terms and conditions that come along with accepting a license from the Gambling Commission of the UK. An online casino that bears a license from this Commission must comply with its License Conditions and also regulations and rules related to Code of Practice.

There are also terms and conditions in place to determine the licensing fees to be paid. These fees depend on multiple factors, including gross gambling yield and also the kind of gambling the company offers. The Commission also sets a number of other fees, including corporation tax rate, gaming tax rate, security requirements, duration for which the license is valid, and more.