The online gambling industry in the UK is one of the largest and most lucrative markets in the world. That is why it is pretty natural that tapping into this booming sector will need more than just a great platform and a solid game selection. If you want to operate a gambling platform (online casino or sportsbook, for example) in the UK, you must obtain a UK Gambling Commission (UKGC) licence.
With this licence, you make sure that your casino or betting site adheres to the strictest regulatory standards, protects players, and promotes fair play.
In this article, we will take a closer look at the cost of obtaining a UKGC gambling licence and related considerations within the UK gambling market. Whether you are an established operator or a newcomer, it is critical to understand the breakdown of the licensing costs and fees to avoid any nasty surprises down the line. After all, this is a hotly competitive sector with strict regulations.
What is a UKGC Licence?
A UK Gambling Commission (UKGC) licence is an official document granted to online gambling operators by the UK government, confirming that they comply with the UK’s stringent regulations. The licence ensures that the operator runs a fair, secure, and responsible gaming environment.
In a way, it is a mark of credibility and trust to make sure that players are protected from fraud and that their personal information is safeguarded on the platform. Without this licence, operators are not allowed to legally offer gambling services within the UK.
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Why Do You Need a UKGC Licence?
Any operator that wishes to have the seal of approval from the Gambling Commission to operate in the UK market needs a UKGC licence. It is only after adhering to the regulations put forth by the Commission can you expect to legally offer any slots, wagering, or betting in the country.
When you prepare to get a UKGC licence and make the fundamental changes to your policies that are needed for transparent terms, fair payouts, dispute resolution mechanisms, marketing guidelines, bonus policies, etc., you will end up creating a platform that is considered safe for the UK audience.
This gives you not only legal protection but also boosts your reputation—as the UKGC is one of the most respected regulatory bodies in the world (in fact, with Australia and Canada, the UK forms the trinity of the most advanced nations in terms of gambling regulations).
And last but not least, the player’s trust in your platforms, terms, bonuses, etc. is also increased remarkably if your company carries a UKGC licence.
Why Do You Need a UKGC Licence
Costs Involved with a UKGC Licence (and Other Fees)
The cost of obtaining a UKGC licence varies depending on the type of gambling services you plan to offer and your business’s Gross Gambling Yield (GGY). There are three main types of licences: remote casino, general betting, and pool betting. Each of these has different fee structures based on the operator’s revenue.
The UKGC employs a bracket system for determining fees, with lower GGY brackets incurring lower costs and higher GGY brackets incurring more significant fees.
On top of the application fee, operators are also required to pay annual fees, which contribute to the ongoing regulation and monitoring of the platform’s operations. Fees can range from a few thousand pounds for small operators to over £900,000 annually for larger companies.
Remote Casino
Applies to remote casinos, general betting virtual events, and bingo platforms.
- Operators pay £4,224 upfront and £4,199 annually at the low end.
- Operators with a GGY of £1 billion or more pay £91,686 as an application fee. The annual fee for these brands is £793,729.
- Additionally, these operators on the higher end need to pay £125,000 for every £500 million increase in their GGY.
Remote General Betting
Applies to platforms offering fixed-odds betting services for real events such as sports. There are ten brackets here.
- The lower brackets are under £550,000. At the lowest end, an operator needs to pay £4,693 for the application fee. The annual fee is £5,282.
- The upper brackets are for companies with a GGY of £1 billion or above. At the highest rung of the ladder, operators pay £41,243 for the application and £1,077,027 per year as well as £200,000 per £500 million GGY on top of that.
Remote Pool Betting
Often related to horse racing, pool betting is when the total amount staked is divided among all winners. This one also has a 10-bracket system similar to remote general betting.
- The lowest brackets are reserved for operators with a GGY of under £1.5 million. They pay £938 for applying and £2,406 annually.
- At the top (£1 billion+), the application fee becomes £7,030 and the annual fee £907,832—with the provision of an additional £150,000 for every £500 million increase in the operator’s GGY.
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UKGC Licence Cost: FAQs
Here are some quick answers to the hottest questions regarding a UKGC licence for online casinos and sportsbooks.
Do you need a license to run a gambling website?
Yes, you must obtain a licence from a regulatory authority like the UK Gambling Commission (UKGC) if you wish to legally operate an online gambling website in the UK. Running a gambling platform without proper licensing is illegal and can result in severe penalties. The licence ensures that your platform adheres to all the necessary regulations regarding fairness, security, bonus, marketing, and responsible gambling practices.
How to get a licence from the Gambling Commission?
You need to submit an application to the UK Gambling Commission and meet all its criteria. This includes demonstrating financial stability, providing detailed information about the business, and implementing procedures to protect players. You must also ensure that your platform adheres to strict anti-money laundering measures and player protection standards.
Is the UKGC licence strict compared to offshore licenses e.g. Curacao, Malta, and Gibraltar?
Yes, the UKGC licence is generally considered stricter than many offshore licences, such as those from Curacao, Malta, or Gibraltar. The UKGC imposes stringent regulations for player safety, fairness, and transparency. It requires operators to adhere to high standards for data protection, responsible gambling, and compliance with financial regulations. Offshore licences, while still legitimate, often have less rigorous oversight.
How long does a UKGC gambling license take?
The process of obtaining a UKGC gambling licence can take anywhere from four to six months, depending on the complexity of your business. This includes the time needed for submitting your application, providing supporting documents, undergoing background checks, and fulfilling any additional requirements.
Can I operate a casino out of the UK with a UKGC licence?
A UKGC licence allows operators to offer services to UK players, but it does not automatically grant the right to operate in other countries. However, holding a UKGC licence can improve your reputation and make it easier to gain approval in other regulated markets, as the UKGC is one of the most respected gambling regulatory bodies. If you wish to operate in other countries, you may need to obtain licences from those specific jurisdictions or an offshore authority such as Curacao, Cyprus, Malta, etc.
UKGC Licence Cost FAQs