New rules mean that credit cards are to be banned for gambling use from April, and customer verification strategies will be stricter from May 2020.

March 23, 2020

UK-licensed online gambling operators have been given new marching orders from their regulator regarding how they operate in our current pandemic purgatory. On Tuesday, the UK Gambling Commission. The code already prohibits online casino advertising before the 9PM watershed, and blocks gambling brands from appearing on any childrens’ sporting merchandise. It also mandates that all advertising must carry responsible gambling messaging. The UK government is worried that the gambling addition may be on the increase with more and more people heading online to place their bets. That is why earlier in the year the state government introduced restrictions and regulations that will have effects on the entire industry in the UK. Last year saw the introduction of a new set of gambling regulations targeting the UK’s iGaming industry. The purpose of those guidelines, now in full effect, is to tackle types of advertising that. How gambling laws contributed to the rise of online casinos in UK. The growth of casinos in the UK has been unprecedented. There are so many casinos that opened only a few years ago and are now conducting business in the millions. This has all been possible because of the ease with which online casinos can be accessed.

The latest gambling statistics show that there are approximately 24 million people taking part in gambling in the UK, with 10.5 million of those people doing so online, according to the UK Gambling Commission (UKGC).

Whether betting in the sports industry or online casino sector, gambling has become a very popular way of making a bit of extra cash in recent years. And while many online gamblers do it to have a ‘bit of fun’, it isn’t such a light activity for those who have become addicted or experienced other gambling-related harm.

The number of children who have been found to be regularly participating in online gambling has also increased in recent years, meaning that younger people are also at risk of being ‘harmed’ by the world of gambling, despite it being illegal to those under the age of 18.

In 2020, new rules are being introduced by the Gambling Commission to tighten regulations online, as a way of making the gambling sector safer, fairer and ‘more transparent and risk-free’ for customers.

All changes will apply to both new and existing customers, but what exactly are they?

Law changes - Stricter ID verification

New rules mean that a customer’s age must be verified before they can:

  • Gamble with their own money or use a free bet/bonus
  • Transfer any funds into their account

Children have illegally become involved in sports betting in recent years, and as a consequence, many have been affected by ‘problem gambling’ in some way, similarly to adults.

To protect against this, many online betting operators have made their ID verification process slightly stricter, which may, however, have an effect on the people who are entitled to gamble and want to do so freely and safely.

In March 2018, it was announced that certain online gambling operators were unfairly demanding more forms of identification from customers when they tried withdrawing winnings, so new rules are being set to enforce a better, more efficient and accurate way of asking for customer verification.

Online, licensed gambling companies must abide by the following rules:

  • The minimum verification required is: name, address, and date of birth.
  • If additional verification is required, the licensed operator must ask for it promptly.
  • Customers must be told about any required ID documents before being able to deposit funds. Additionally, they must also be informed about the types of situations in which these forms of ID might need to be shown, as well as how it should be passed onto the licensee.
  • Gambling operators must ensure that any customer's information is accurate.

Additionally, online gambling businesses previously had 72 hours to verify the details provided by potential customers online, but changes mean that details will have to be verified more efficiently - which will subsequently benefit customers.

People now also have to confirm their ID and age every time they sign up or log in an online gambling or sports betting site.

Customers are not allowed to withdraw any of their winnings until their age has been verified - stakes will be returned if it comes to light that the person gambling is under-age.

The Commission has also insisted that age verification must occur before customers can have access to any free-to-play versions of gambling games on licensees’ websites, despite there being no prize to win.

These changes are due to come into effect on 7th May, with the aim of making online gambling safer for children and eligible adults, making sure that younger and vulnerable people don’t have access.

Credit card payments are no longer allowed

Another major change that’s taking place in the online gambling industry is that people will no longer be able to use their credit cards as a form of payment when gambling online. This will be stopped from 14th April.

The Gambling Commission reports that in 2018, 800,000 people used a credit card for gambling, also stating that 22% of online gamblers who use credit cards are classed as ‘problem gamblers’. This is mainly because they get into thousands of pounds worth of debt by using money that isn’t theirs, and many can do so because they have high credit card availability.

Gambling Commission Chief Executive, Neil McArthur has said that “we realise that this change will inconvenience those consumers who use credit cards responsibly but we are satisfied that reducing the risk of harm to other consumers means that action must be taken”. He further stated that the changes have been made “to ensure consumers only gamble with money they can afford to spend”.

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Paying via PayPal

PayPal have recently emailed their customers to let them know about the credit card payment change in the UK's online gambling rules, stating that it is no longer possible to pay gambling websites via a credit card in a PayPal wallet.

Uk Online Gambling Regulations

If you gamble online and wish to pay via your PayPal account, you will need to add another bank account or debit card to be able to do so.

These new changes will help licensed gambling operators continue to prevent criminal activity, children from creating accounts illegally and consumers getting into tremendous credit card debt, further encouraging people to gamble responsibly online.

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Uk Online Gambling Regulations

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Gambling

The United Kingdom hosts a variety of gambling platforms including casinos, poker and sports betting. UK residents can find both physical and online venues for their favorite gambling entertainment. From a legal standpoint, the country is one of the most pro-gambling in the world. That being said, there are still laws to adhere to when participating in legal online gambling in the UK. This page was created specifically to inform players on how they can legally gamble in Great Britain. There is also information about the governing body on gambling and how they affect the industry. Informing yourself on the present laws in the United Kingdom will keep you within your legal confines as responsible punters.

Laws For Land-Based Gambling In Great Britain

Per the Gambling Act of 2005, any gambling facility is allowed to operate if they have the necessary licensing and regulation from the UK Gambling Commission. UK residents have a wide range of options when it comes to land-based gambling. You can find land-based casinos, poker rooms and sports betting facilities. There are strict conditions that these gambling venues must abide by, but these are more a concern of the gambling providers and not the individual players/bettors who use them.

UK Online Gambling Laws And Regulations

The next section provides insight regarding the laws covering the online side of UK gambling. There are two major laws to consider—the Gambling Act of 2005 and the 2014 Gambling Bill. Together these laws make up the online gambling jurisdiction in Great Britain.

Gambling Act of 2005

The Gambling Act of 2005 has been the standing law on gambling in the UK for some time now. The law aimed to clean up the industry from being a criminal enterprise to a more regulated and legitimate one. The law also calls for gambling to be conducted with fair play and requires compliance certifications. Persons under the legal gambling age are not permitted to do so under the Gambling Act of 2005. The UK Gambling Commission spawned out of this law and is still the governing body within the industry. The law includes all forms of gambling including casinos, poker and sports betting. There are both land-based and online casinos that service British players throughout the country. Residents are permitted to use offshore gambling providers so long as they have the proper legal licensing and regulatory oversight deemed mandatory by the UK Gambling Commission. Any online site with a license from the gambling commission is free to advertise and provide gambling services to UK residents.

2014 Gambling Bill

In 2014, a bill was circulated that essentially acted as an expansion on the Gambling Act of 2005. This law raised the standards that online gambling providers have to abide by in order to conduct business in the United Kingdom. The revision calls for any online gambling provider to obtain a license from the UK Gambling Commission if they want to advertise to British players. The law also establishes a 15% flat tax rate on any gross revenue accrued from online gambling providers in addition to the licensing fees already in place. This revision is aimed more at the big-name online gambling providers than individual bettors. If anything, the revision is an improvement for UK online gambling because it weeded out providers that can’t keep up with the stringent conditions laid out by the law, leaving room for only legitimate gambling services.

UK Gambling Commission

The UK Gambling Commission is responsible for licensing and regulating any and all gambling businesses providing services to the Great Britain area. In providing licenses, the UK Gambling Commission aims to prevent any criminal activity from taking place within the gambling industry, ensure fair play and protect those who under the legal age of 18 from gambling practices. They are also responsible for regulating the National Lottery.

The UK Gambling Commission is sponsored by the Department of Culture, Media and Sport and they are funded by the companies they license (through licensing fees). They license gambling operations that provide options for arcades, betting, bingo, casinos, gaming machines, lotteries, remote gambling (online/mobile) and other gambling software. In mediating compliance amongst licensees, the UK Gambling Commission conducts reviews and visits. They advise license holders on the proper ways of maintaining their business and will take preventative actions in light of any illicit activities. Reviewing financial information is another significant part of their regulatory oversight and keeps licensees in check. Lastly, the UK Gambling Commission works closely with the DCMS and Responsible Gambling Strategy Board to combat problem gambling.

FAQ's

Do Online Gambling Sites Accept GBP As Currency?

Yes. Sites offering their gambling services to UK residents accept the British pound as a viable form of currency without any conversion fees.

Uk Online Gambling Regulations Rules

Does The Gambling Act of 2005 Account For All Forms Of Gambling?

Yes—at least the mainstream ones. This law includes casinos, poker and sports betting. UK residents are fortunate enough to have access to both land-based and online options for gambling entertainment.

How Do I Know If The Site I’m Using Is Licensed?

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Reputable online gambling brands will have their licensing information readily available for bettors to find. Our team of industry professionals have compiled a list of online gambling providers that meet the requirements set out by the UK Gambling Commission. These sites also have strong security profiles that keep your information safe, banking suites that accept GBP, additional features like live/mobile betting (for sports), bonus incentives and more. You can also search the UK Gambling Commission's website to find out whether or not a site is legally licensed in the United Kingdom.