British iGaming licence: why and how to obtain
Let the numbers speak for themselves. SafeBettingsSites proves that the United Kingdom appears to be the biggest online gambling market, accumulating over $12bn of total gross revenue. The region outperformed even the U.S. Despite the latter boasting far more impressive population figures, more than $1bn of total gross revenue divides America from the winner.
As for European rivals, none is even close – Italy, the second place, generally shows about a third of Great Britain’s gross gaming revenue achievements. Before we touch upon the subject of getting the UK licence, let us give you a quick overview of its specifics.
What’s the licence about?
It’s a gambling licence given by Gambling Commission, a public organization in charge of regulating gaming laws in the United Kingdom.
Either you’re an operator currently located in the UK or the one distributing your services across British clients, getting the UK licence (at least one) is a must. Why at least?
In fact, Gambling Commission is also responsible for checking operators for compliance with local gaming regulations and combating illegal gaming. The organization issues a plenty of licensing types, among which are:
Remote casino operating licence – to let operators share a vast variety of casino games in the remote mode. The most common scenario is to suggest taking your chances with poker or baccarat online, following the gambling website.
Remote real event licence – as the name suggests, operators having this licence take a chance to distribute their betting services to people who’re willing to make a fixed-odds bet on the real race or match.
Remote virtual event licence – as the remote real event licence doesn’t work when it comes to virtual competitions, this type of licence is obligatory if operators focus on enabling betting on virtual events.
There are also separate licences required to promote bingo or pool betting.
Any limitations of British iGaming licences?
Is your online casino business considering cryptocurrency as one of the key payments for gamblers? If you’ve answered “yes”, we regret to inform you that there can be certain issues with British licences in this very case. Although there’s no legal prohibition of cryptocurrency as a payment method when your solution is licenced, anti-money laundering regulations officially defined by Gambling Commission make it challenging to involve crypto in your business model due to its anonymity.
Anyway, there are many more factors that make British licences utterly desirable and valuable among operators. It automatically provides them with utmost player recognition, as this licence is associated with a quality label and online gaming business credibility.
How to get the UK online gambling licence?
To obtain an online gambling licence from the Gambling Commission, an operator should first submit an application form via post or email, along with providing identity documents and the evidence of financial stability.
Once submitted, this commonly takes up to 8 weeks for processing, in case all required documentation is complementing an application form; otherwise delays might occur. If you wonder what should be included in the necessary package of documents, we are here to show you the list of those always asked regardless of the case.
- Common policies
- Bank certificates (recent half of the year, all bank accounts coverage)
- Business strategy planning
- Gain and loss forecasts for the three coming years
- Financial guarantees
- Terms of legal contract between you and your customers
- Personal Management Licence or Annex A
The whole list isn’t always limited to the positions above. Depending on the circumstances or kind of the legal entity willing to get the licence, extra points can be included, like a copy of other licences (if any) or credit files.
LCCP is about the rules and regulations that online gambling operators should adhere to if they’re intended to acquire the UK licence. As we’ve mentioned above, the game is worth the candle, as the licence holders are treated as 100% credible business owners.
What’s included in the LCCP evaluation criteria?
First, these are operating licence conditions such as anti-money laundering, payment, protection of customer funds, customer identity verification, and much more.
Code of practice provisions are about the protection of children, gaming machines in gambling premises, local risk assessment, etc.
Personal licence conditions are considered, too.
How much does the UK licence cost?
The kind of licence and businesses’ Gross Gambling Yield turn out to be the two key factors that impact licence fees. Let’s take a look at two cases, one related to an operator whose annual GGY is less than £550,000, another telling us about the business with over £1 bln of GGY.
In the first case, the application fee will be about £4,000 and the annual fee ranging from £4,200 to £5,285, depending on the licence type.
In the latter case, the operator needs to pay a £41,200+ app fee and an over £1,000,000 annual fee if he/she gets the real event licence. When choosing the remote casino or remote virtual event licence, the fees differ significantly – almost £92,000 of the app fee and £795,000 of the annual fee. Please mind that these numbers don’t include extra payments for additional millions of GGY.
Besides, there are some licencing opportunities, e.g., pool betting, that require much lower application fees.
Any questions left?
We bet there’s much more to be discussed about the UK licence and peculiarities of the licence-obtaining procedure. If you still have any questions that need clarifications, we’re always ready to connect and give you more details.
Regardless of the focus of your queries, the Turbomates specialists will provide you with a free consultation. So don’t hesitate to contact us, as we’re always happy to talk!