When it comes to a well-regulated market, the United Kingdom is one of the first countries one could think of. The industry is regulated under the Gambling Act 2005. The regulatory body that oversees the gambling market is the UK Gambling Commission. The regulator is also responsible for issuing licenses to casino operators interested in providing gambling services to UK residents.
The Commission can issue 3 types of licenses depending on the gambling services a given operator wishes to offer. If you run or manage a gambling business, you have to hold a gambling operating license. Assuming that you perform two or more management functions simultaneously, you have to apply for a personal management license. If you are a dealer, a cashier, a pit boss, or an inspector at a licensed casino, you need to hold a personal functional license.
Types of Licenses the UKGC IssuesIf you are planning to establish a virtual casino that targets UK players, you have to apply for a remote operating license. It is important to mention that there are two types of remote operating licenses, and more precisely remote casino license and remote host operating license.
In a nutshell, the remote casino license allows you to offer online casino games to players residing in the UK. Gambling software businesses that produce gaming products and host their games on servers that can be accessed through operators’ websites have to hold a remote host operating license. Casino Guardian is indeed one of the best bets for gambling enthusiasts who want to get up-to-the-minute information about the gambling industry in the UK.
How to Apply for a Remote Casino License?
The UK Gambling Commission focuses on establishing a safe and fair gambling environment. The regulator maintains strict standards when it comes to its licensees, so do not expect that receiving permission to operate an online casino in the UK is a piece of cake. Naturally, there are certain steps a company should follow in order to obtain a license.
The Licence Conditions and Codes of Practice is the main document that outlines the requirements you have to meet to receive a remote operating license. Interested operators should be informed that this document is not static. The most recent version is from 31st October 2020.
To apply for a remote casino license, visit the Commission’s official website and fill the application form. You will be required to attach certain documents. The principles which the Commission uses when reviewing applications include financial robustness, integrity, competence, and criminality.
Duration and Costs of Remote Casino Licenses
Once you submit your application, the Commission will process it within 8 weeks. If you receive approval, you are allowed to legally offer gambling services to Brits. The remote casino licenses issued by the UK Gambling Commission are perpetual.
Operators who want to keep their licenses have to comply with the Commission’s guidelines, stay on the right side of the law, and pay their fees regularly. Up until now, the UKGC suspended/revoked the licenses of many remote casino operators who failed to follow the rules established by the regulator.
Application fees are paid after you submit your application via bank transfer or BACS. The annual fees are calculated based on a given operator’s gross gaming yield (GGY). If the license you hold belongs to the F1 category, this means that your GGY is under £550,000. The application fee for obtaining such a license is £2,640 and the annual fee is £2,709.
Provided that you apply for a G1 license (GGY from £550,000 up to £2 million), you have to pay an application fee of £6,452, while the annual fee is £6,488. The same application fee applies to licenses that belong to the G2 category (GGY from £2 million up to £5.5 million) but the annual fee is £9,480.
The other categories of licenses include H1, I1, J1, K1, L1, and M1. The M1 category is associated with the highest GGY, and namely £1 billion or greater. To obtain such a license, applicants have to pay an application fee of £57,304. As for the annual fee, it is £512,083 plus £125,000 for each complete additional £500 million of annual gross gambling yield above £1 billion.
- Want poker news as it breaks? Join the Poker News and Gossip Telegram channel!