UK Gambling Regulation Casino Laws in UK
There are more than 150 casinos in the UK, and the number of online licenses is growing rapidly, now exceeding 2,000. Gambling Laws and Regulations 2025 common issues in gambling laws and regulations – including relevant authorities and legislation, application for a licence, licence restrictions, digital media, enforcement and liability – in 40 jurisdictions. Similarly, the benefits are likely to be greater for larger operators as they are more likely to have the physical space and financial ability to invest in new machines. Whilst there is no legal duty on gambling operators to protect customers funds in the event of insolvency, many of them do so voluntarily. These rules will take good practice already offered by some operators and expand that so customers can expect the same standards across the industry. Gaming machines like slots, fruit machines and betting terminals are commonplace in the UK nowadays but they do require licenses to operate.
Do you agree with the proposal that casino operators will be required to notify licensing authorities and the Gambling Commission if they decide to take-up their entitlement to additional gaming machines under the new regime? Some of the same size requirements for Small 2005 Act casinos will apply for 1968 Act casinos, should they increase their entitlement to gaming machines to more than 20 (including one or more Category B machines). This amendment will mean that 1968 Act casinos that meet the same size requirements of Small 2005 Act casinos (subject to our final position on maximum size of gambling space) will be entitled to 80 gaming machines. This will ensure that casinos continue to offer a variety of gaming and non-gaming activities for customers while at the same time allowing a greater number of machines to be sited on the premises. In order for a 1968 Act casino to be entitled to 80 gaming machines, we propose that it must have a gambling area of at least 500sqm, the same minimum requirement for Small 2005 Act casinos.
These operators tend not to offer personalised account management or tailored incentives for specific customers. The number of customers on such schemes has fallen substantially and there have been no enforcement cases related to operators failing to meet the new standards. The Gambling Commission’s significantly strengthened protections around online VIP schemes specifically (as defined in the existing Gambling Commission rules) are making sure they are not used to exploit gamblers who are suffering harm. Nonetheless, the question remains as to whether incentivising continued spending from customers who have already gambled high sums should fundamentally be considered too dangerous a practice in a sector with a known addiction risk, especially where that high spending is in itself a risk indicator.
It has also argued that as bingo games are required to have a participation fee which creates a retention pot for future winners, operators are constrained in offering further choice of side bets within their session. While the pay-out per game can be variable, the participation fees create a pot in retained prize fees should multiple customers win. These additional games are compliant with current rules of bingo in that they require participation in the main game of bingo and the numbers are allocated to the customers. Licensed bingo operators already offer in-game bonus prize opportunities under current rules defining bingo. While there is an initial outlay, we believe this gives operators some flexibility on late night opening and falls within the discretion of local authorities, ensuring decisions are made at a local level.
Venues would be required to comply with these requirements in order to increase their gaming machine allowance. Contrastingly, respondents from local government, campaign groups and academia were more cautious about any measures which could be seen as increasing the supply of gambling opportunities, due to links between rates of gambling participation and gambling-related harm. This fee enables licensing authorities to fund their enforcement and administrative gambling duties on a cost recovery basis. We will increase the maximum premises licence fees which can be charged by local authorities by 15%. To ensure that this is enforced we will make it a criminal offence to invite, cause or permit someone under the age of 18 to use these machines.
Some operators will benefit from both. This option balances our 2 key priorities, the first being to support arcade and bingo premises through increased commercial flexibility within the context of many businesses operating at a loss post-COVID-19. While not as liberalising as Option 3, responses from some operators indicated that increases in Category B cabinets would not be vastly different to projections provided for Option 3.
Domestic licensed versus offshore operators
This means, for example, that operators will be able to site 2 Category B cabinet gaming machines to a minimum of one Category C or D gaming machine. The government intends to amend the current gaming machine ratio to allow operators to make 2 Category B gaming machines available to a minimum of one Category C and D gaming machine. This chapter outlines the evidence received in relation to the white paper proposal to amend the ratio of Category C and D to Category B gaming machines in arcade and bingo venues.
We have taken into account that these machines currently account for approximately two thirds of Category D slot style machines. While many welcomed this voluntary move, some respondents called for the restriction to become mandatory, while others like the Gambling Related Harm APPG wanted it to be extended to ticket-out slot style machines too. The distinction with ticket-out machines was drawn on the basis that while cash can be reinserted for further play (potentially facilitating behaviours like chasing losses), tickets cannot and have no value beyond what they can be redeemed for within the venue. Industry has recognised the concerns around slot style machines and in March 2021, Bacta members updated their Social Responsibility Charter and Code of Practice to voluntarily implement a ban on under 18s using cash out slot style machines. 18% of 11 to 16-year-olds had played on fruit style machines where you win tickets to ‘buy’ prizes and 10% on fruit style machines with small cash prizes. The tickets these machines pay out can be exchanged for a small physical prize such as stickers, sweets or a toy.
Figure 11: Children’s exposure to broadcast gambling advertising (impacts / week)
Simon Stevens, then-chief executive of the NHS, said in 2013 that he “disapproved of eight betting firms” because “they do not pay towards NHS costs in countering gambling addiction.” The gambling industry has announced voluntary curbs on television advertising. The online sports betting market in the UK is estimated to be worth £650 million which has seen a compounding annual growth rate from 2009 to 2012 of approximately 7%.
As part of the arrangements for allocating existing 2005 Act licences, where more than one operator wanted to develop a casino, local authorities were able to take into account the financial contribution of operators towards regeneration and harm prevention. Increased machine allowances across the casino estate will bring commercial benefits to casino operators, and allow them to compete on a more equitable footing with online operators. We estimate around 50 casinos smaller than the 2005 Act Small casino would also be able to benefit from increased machine allowances, proportionate to their size and non-gambling space. 1968 Act casinos which do not meet these size requirements will also be able to benefit from extra machines on a pro rata basis commensurate with their size.
Most forms of licensed gambling are currently illegal for under 18s and there are requirements to make sure children cannot access them either in person or online. However, if we see evidence that this non-statutory arrangement is not delivering the protections for customers as we expect, then we will legislate to create a statutory ombudsman for the sector. The scheme should ensure customers have timely access to the independent ombudsman to deal with social responsibility complaints where the gambling operator has not been able to satisfactorily resolve the complaint. To introduce further protections for customers and deal with the gap in redress quickly, we will look at how industry can set up an ombudsman that is fully operationally independent and is credible with customers, working with all stakeholders in the sector. More broadly, this could enhance data collection and drive improvements across the industry as a whole as the ombudsman could feed back trends in the disputes it investigates to the Gambling Commission. One operator told us they tackle this risk by making any voluntary payments related to social responsibility complaints conditional on the complainant registering with GAMSTOP, the online self-exclusion scheme.
Such apps have so far only been rolled out for use on a relatively small proportion of gaming machines, principally in pubs. However, the advice is that the onus should be on industry to demonstrate how developments on cashless payments can be offered in a manner which does not increase the risk of gambling harm or gambling-related crime, such as money laundering. They also pointed to anecdotal evidence that indicates a decline in gaming machine usage in alcohol licensed premises by casual pub goers, who now pay by card but who previously might have played a machine using spare change. The original purpose of rules prohibiting the use of debit cards on gaming machines was to protect players. As well as supporting the recovery of those businesses which choose to offer betting, offering an alternative to betting on a phone while in a casino could lead to player protection benefits where the casino operators are better able to monitor all the customer’s activities while in their premises. In line with the intention of the 2005 Act to create casinos providing a range of gambling and non-gambling activities, we propose to permit sports betting in all casinos.
We support allowing trials of linked gaming machines in venues other than casinos, where prizes could accrue from machines linked in a community. The government is also concerned by the low pass rates in test purchasing for racecourses and gaming machines in alcohol licensed premises, which are both significantly lower than at other land-based venues. This would provide licensing authorities with greater powers in respect of gaming machine entitlements in premises with alcohol licences, in the event of underage gambling.
Operators who run betting shops, where staff alerts are already available, agreed that machines accepting cashless payments should also be required to have this feature. The proposed thresholds differ from the current industry standard in casinos where it is £250 deposited and 60 minutes of play. We think that the starting point for these thresholds should be deposits of £150 and 20 minutes of play across all machines but understand that further evidence may arise during its consultation. Some respondents also stated that there should be a difference depending on the category of machine, with higher limits for B1 machines. We do not propose that Category D machines are required to allow customers to set time and monetary thresholds in order to accept direct debit card payments.
The Gambling Commission will launch a consultation on the proposals for financial risk checks outlined in Box 3 below, with the aim of introducing changes in the licence conditions and codes of practice. It is clear that a financial risk model must also pay especially close attention to those who lose unusually large sums relative to both other customers and other likely outgoings. This aligns with recent research into online gambling specifically, which found 22% of regular online gamblers with annual losses over £700 were experiencing ‘problem gambling’ according to the PGSI two years later. Equally, while high losses are not necessarily harmful, it holds that the higher the gambling spend (particularly in a short period of time), the smaller the proportion of the population that can afford it without negative consequences. We received a number of anecdotal accounts from individuals with personal experience of gambling harm that illustrated the relationship between gambling harm and financial vulnerability – both as a cause and/or effect.
With a background in business analytics and certification in responsible gambling practices, he brings a data-driven, compliance-focused approach to every review. Illegal activities encompass unlicensed offshore sites targeting UK players, private betting operations, and any gambling services provided to under-18 individuals. Legal and illegal gambling activities in the UK are clearly defined by the law to regulate the industry and protect players.
- Evidence provided for Option 1 suggests that increases in Category B cabinet gaming machines would be moderate in the short-term.
- (5) No gambling is permitted in the table gaming area of the premises other than gambling by way of table gaming.
- Should it be a criminal offence for a person to invite, cause or permit children or young persons to play on these machines?
The Review has non gamestop casino not seen data which robustly quantifies behavioural nudges or barriers in the online gambling sector, so it is difficult to estimate how much they may drive consumer spending/ revenue that would not have otherwise happened, or the impact of any changes. For instance, a recent audit of online operator platforms by the Behavioural Insights team found 8 of the top 10 GB operators stated a minimum account balance was required for customers to withdraw their funds. This approach assumes that those using self-exclusion facilities do so to manage harmful gambling, as opposed to things like marketing and / or data processing preferences. Several specific areas of concern were identified in responses, including how the design of online gambling platforms (the so called ‘choice architecture’) can make it difficult to access tools or information intended to support consumers to make informed and safer decisions about their gambling.
The draft Casinos Regulations form part of a package of interlinked statutory instruments which make changes to the regulatory framework for land-based casinos. Draft statutory instruments that form part of the package of measures that will change the regulatory framework for land-based casinos. We believe this is particularly important within the wider context of the modernising measures we are taking to support land-based gambling operators. The respondents received an average of 2 premises licence applications and held an average of 44 live premises licences, per licensing authority, over the same period.
The high-end casinos are not distinct in legislation, and all have licences based on the 1968 Act; but their business model is very distinct in practice from that of most casinos in Great Britain and gaming machines contribute just 1% of their GGY compared with 20% to 30% in mainstream casinos. In support of its case for additional machines, the industry provided evidence that the current low availability of machines can in fact increase the risk of gambling-related harm, as customers play for longer on machines due to fear of losing their place. Gaming machines are permitted in a variety of locations, including casinos, licensed betting offices, licensed bingo premises, adult gaming centres and family entertainment centres and members clubs. Alcohol licensed premises, including pubs, are also able to offer two Category C and D gaming machines in reliance on their alcohol licence, or more if they apply to the licensing authority. Where casinos whose licence originates in the Gaming Act 1968 meet the requirements of a 2005 Act Small casino, including for size and non-gambling space, they will be eligible for the same gaming machine allowance and we will align fees and mandatory premises licence conditions as appropriate.
Chapter 5 ‘Review of licensing authority fees’ outlines proposed changes to premises licence fees for Small 2005 Act casinos, which 1968 Act casinos that elect to move onto the new regime will also be subject to. The government intends for operating and premises licence fees to be harmonised between 1968 Act casinos and Small 2005 Act casinos. This measure will also bring greater consistency to the different licensing regimes and greater parity between online and land-based casinos.
This is an element in the alcohol licensing process that captures a wide range of evidence to inform licensing decisions. Most submissions to the call for evidence from licensing authorities cited the ‘aim to permit’ provision in the 2005 Act as an issue. As outlined above, the 2005 Act gave licensing authorities a range of powers to regulate gambling in their local area. However, some also voiced concerns that payment with debit cards could make it harder for customers to stay in control of spending and some were sceptical of the extent to which existing debit card technology would make it possible for operators to track chaotic play and intervene appropriately.
Most people will probably find this impacts their slot machine play a lot since so many people use autoplay to avoid the tedious clicking. In addition, all autoplay features will need to be removed from casino games. We think that many of these changes will help combat problem gambling, so we wouldn’t be surprised if they ended up being used in multiple gambling jurisdictions anyway. We expect a lot of these changes to roll out around the world, especially in games produced by British casino game developers.
Policies, procedures and controls will also need to be updated to address the risks identified in the risk assessment and to reflect the mitigations in place. Relevant risks may include (but are not limited to) cross-channel customer activity, payment methods and open loop payment processes. More information on the operating licences required is available in our guidance on the legislative changes. Casino operators are reminded that those wishing to utilise the new extended entitlements will need to inform the Commission under Licence Conditions and Code of Practice (LCCP) Ordinary Code Provision 8.1.1 (Information requirements). Real gamblers run Casinos.org.uk,and we have over 20 years of experience in real money gambling.