Slotegrator, a reputed online casino provider recently released a report on the importance of obtaining a UK online gambling license. The report provides details of the types of UK online gambling licenses and guides operators on applying for a UK license. It also talks about the LCCP and mentions a few downsides of operating an online gambling service in the UK.
Undeniably the largest online gambling market globally, the UK houses almost 600 growing operators. Chances are punters have come across these no deposit casinos whether directly or indirectly, through informational sites that promote the top ranking casinos not only in the UK, but worldwide.
UK Online Gambling
During the financial year 2020 – 21, the UK online gambling industry reported gross gambling profits of £6.9 billion which is not surprising since there are over 600 licensed operators in the country.
Operators who want to provide online gambling services to UK residents must first obtain a license from the UK Gambling Commission (UKGC). The UKGC reviews license applications and determines whether the operator can comply with UK gambling regulations. Applicants must submit several documents to prove their ability to maintain the strict standards mentioned in the License Conditions and Codes of Practice (LCCP).
Types of UK Online Gambling Licenses
In addition to granting licenses, the UKGC supervises operator activity and ensures that they comply with UK gambling laws.
The UK Gambling Act of 2005 was comprehensive when enacted, but now it is ill-equipped to handle the latest developments in iGaming technology. For example, it says nothing about cryptocurrency gambling and entertainment products based on blockchain technology.
The UK government amended the UK Gambling Act in 2014 and 2021 to enhance its efficacy in dealing with online gambling issues, and legislative efforts to amend the law further are ongoing.
A company can operate an online gambling business in the UK only after obtaining one or more of the following licenses:
- A license enabling operators to offer online table games and slots
- A license allowing operators to offer fixed-odds betting services on virtual events through websites
- A bingo license permitting operators to offer online bingo games
- A license permitting operators to offer fixed-odds betting services on real sports events online
- A license permitting operators to offer pool betting services through websites
The LCCP
UK online gambling licenses are highly reputed because they prove license holders’ ability to comply with strict gambling regulations. Each UK license holder has to meet LCCP requirements. Compared to the gambling regulations of other jurisdictions, the LCCP requires license holders to strictly follow top-rated anti-money laundering and Know Your Customer (KYC) procedures.
The LCCP comprises three parts:
- The first part deals with licensing conditions, including protection of player funds, equipment specifications, technical standards, payment processing, anti-money laundering provisions, identity verification, responsible advertising, game rules, game types, and more.
- The second part deals with business practices such as player protection, financial requirements, dispute resolution, and marketing.
- The third part deals with obligations for license holders.
About Slotegrator
Established in 2012, Slotegrator is one of the best game aggregators and software suppliers. It supplies omnichannel online gambling products and aggregates technology solutions, game content, industry knowledge, and business solutions to maximize business potential. The company invites operators who want to apply for a UK license to use its license acquisition and jurisdictional advisory services.
To Conclude
UK online gambling licenses are the best, but they have certain limitations. The biggest disadvantage of a UK license is that operators cannot support cryptocurrencies like Bitcoin, Litecoin, Dogecoin, and others.
The UKGC does not ban cryptocurrencies. But its strict anti-money laundering requirements make it impossible for operators to accept deposits through cryptocurrencies.
