Remote Gambling Licence

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This licence entitles you to provide facilities for the playing of casino games and/or participation in other virtual gaming by remote communication (for example roulette, blackjack, poker, reel games). Find out more about licences for remote gambling.

Are you a start-up e-gaming business or considering entering this sphere? There are a number of technical, legal and jurisdictional issues to consider and in this article we look at some of these in the context of licensing requirements.

The Gambling Act 2005 (the 'Act') defines 'remote gambling' as gambling in which persons participate by the use of remote communication such as by the internet, telephone, television, radio or any other kind of electronic or other technology for facilitating communication.

Remote Gambling Licence
  • Any company offering remote gambling services using 'gambling equipment' (which is defined as anything used in the provision of facilities for gambling) located in the UK must obtain a remote gambling licence. 'Remote gambling' is defined as gambling in which persons participate by the use of 'remote communication'.
  • The Licensee is deemed to commence activity upon acquiring the gambling license. Any changes to the gaming equipment, such as rules of the game or any other intended divergences from the original remote gaming license application must be submitted to the Authority for approval.

It is vital that you obtain the correct licences if you are providing facilities for remote gambling otherwise you commit an offence under the Act. You commit an offence if at least one piece of remote gambling equipment is situated in Great Britain, irrespective of whether or not the facilities are provided for use wholly or partly in Great Britain.

There are many different types of gambling and gaming online and it is important that you understand how the Act applies to your business and accordingly what type of licence you will require.

Remote Casinos

The Act permits remote casinos to operate from Great Britain although all relevant equipment used to facilitate remote casino activities must meet the Gambling Commission's remote and gambling software technical standards.

Betting

The Act defines betting as the making or accepting of a bet on the outcome of a race, competition or other event or process; the likelihood of anything occurring or not occurring; or whether anything is or is not true. There are different types of betting:

General betting licence holders are able to offer facilities for betting:

  • at premises-based bookmakers;
  • on tracks; and
  • by remote means.

Pool betting can be remote or non-remote and incorporates:

  • racecourse pool betting;
  • football and other sports pool betting; and
  • many of the 'fantasy football' type competitions.

Betting intermediaries can be remote or non-remote and bring two or more parties together, but do not have liability for their bets. Remote betting intermediaries, which include betting exchanges, generally operate through the internet.

Bingo

Bingo is equal chance gaming but is currently not governed by a standard set of rules. However, the way in which bingo is played is broadly similar throughout Great Britain.

Bingo can be remote or non-remote and the requirements that those providing bingo by remote means need to meet are set out in the Gambling Commission's remote gambling and software technical standards.

The Gambling Commission has also published the Bingo and Casino Equipment Technical Requirements - July 2008 relating to:

  • remote bingo made available in licensed premises;
  • ancillary remote bingo (for example, hand held devices which play the game electronically;
  • non-remote bingo equipment (for example, random number generators for non-remote bingo).

Lotteries

Lotteries can be remote or non-remote and if you allow people to participate in a large society lottery or local authority lottery by remote means you will need the correct licences.

Remote Gambling Licence Meaning

Obtaining Licences

If you are setting up a remote gambling service and any part of your remote gambling equipment is based in Great Britain, there is no single licence to cover your activities. Remote operating licences are available from the Gambling Commission for each type of gambling activity you might want to run, whether it be betting, bingo, casino games, gaming machines, gambling software or lotteries.

You may need more than one of these licences and will also need any relevant personal licences as you cannot start running a gambling business until you have obtained all the necessary licences.

If all of your remote gambling equipment is located outside Great Britain you do not need a licence from the Gambling Commission. However, if you are based abroad and want to advertise your gambling services in Great Britain, you must be based in a 'whitelisted' country or a country mentioned in the Act, including:

  • EEA countries;
  • Alderney;
  • Antigua and Barbuda;
  • Gibraltar;
  • Isle of Man; or
  • Tasmania.

If you apply for an operating licence, you may also need to apply for one or more personal management licences ('PML') at the same time, unless you are exempt as a small-scale operator.

Anyone responsible for any of the following areas of your organisation will need to apply for a PML:

  • Overall strategy and delivery of gambling operations;
  • Financial planning, control and budgeting;
  • Marketing and commercial development;
  • Regulatory compliance; and
  • IT provision and security related to gambling.

Until you are issued with the relevant licences and PMLs, you should not carry out the responsibilities that a PML allows you to do such as making operational decisions.

Clearly operating a successful and legal online gambling business is a complex area.

Woods Whur have been instrumental in advising clients on cross border jurisdictional issues to applying for licences in the UK and foreign jurisdictions. The firm’s ethos is to provide trusted, cost-effective advice using our significant expertise in this highly regulated sphere. We will advise which jurisdiction is appropriate and then guide through the application process in the chosen jurisdiction(s).

Remote Gambling Licence

We have developed a good client base in Asia in recent years and have assisted operators based in Hong Kong and the Philippines in particular with making applications for operating licences in Europe either in the UK, the Isle of Man or elsewhere. Andy Woods makes regular trips out to Asia to advise clients and explore possible options for licences in a wide range of jurisdictions.

Andy has undertaken a major piece of work for an Asian operator exploring a whole range of European jurisdictions and assessing the pros and cons of each jurisdiction to suit the operator in question. Paddy Whur undertook a similar piece of work for the Gibraltar arm of William Hill on line and has recently advised a Bahamas based owner on an operating licence application in the UK.

We have also advised non UK operators with remote operating licences in the UK on Gambling Commission enforcement action and attended meetings with the Gambling Commission on behalf of those operators.

Paddy is also advising on the possible introduction of Mauritius into the on-line gambling licensing framework. It is hoped that this will be an additional jurisdiction in which to be licensed.

Since November 2014, any remote gambling operator wishing to transact with, or advertise to, customers in Great Britain have been obliged to hold a remote operating licence issued by the Gambling Commission. As a team we have made a significant number of applications for new licences for a variety of operators, whether licensed in the previously “white-listed” countries such as Gibraltar, Malta and Alderney, licensed elsewhere in the world, or not licensed at all.

We have a particular expertise in – and enjoy – acting for start-ups and have assisted a large number of companies and individuals in bringing exciting, new and innovative products to market. This involves advising in the first instance, on how the proposal falls properly to be classified under British gambling law, and then making the application for the appropriate operating licence. Our involvement does not end there – we have an excellent track record in continuing to assist these businesses with their regulatory needs as they develop. Praesepe plc is an example of the clients we have helped in this way.

It’s worth noting, too, that our work on remote gambling does not focus solely on remote operators: we also have extensive experience in helping “Bricks and Mortar” operators expand, develop and obtain approval for their online offer.

Remote Gambling Licence Online

Our approach to applications on the client’s behalf for a new operating licence starts with a tailored, clear and precise checklist of the information required to guide them through the process. We provide an action plan designed to steer the application through and can, if required, draft all the bespoke polices on matters such as social responsibility and prevention of money laundering, complaints and disputes, privacy and terms and conditions, required to support the individual business through the licensing process.

We offer a full service, catering for all the gambling licensing requirements of clients. These include making applications for licence variations to adding new gambling activities or to reflect changes in revenue, help with regulatory returns, applications for personal management and personal functional licences, approaches for corporate control approval by the commission in the event that the business changes hands or shareholdings change, and assistance with inspections and enforcement action, if things go wrong.

We have experience of dealing with operating licence reviews and appearing before the Commission’s Regulatory Panel. We also regularly help clients protect themselves against enforcement action through reviews of their policies and procedures, to ensure that they meet the Commission’s standards.

The law on the licensing of gambling software presents particular challenges in terms of advising on what, exactly, it is and on precisely which entities – in what can sometimes be a complex supply chain – fall to be licensed. We have the technical expertise and industry knowledge to deal with these questions, which have been particularly thrown into the spotlight by the requirements that, from 31 March 2015, any remote gambling operator with GB customers only source its gambling software from Commission-licensed software businesses. We have an excellent track record in establishing a meaningful and constructive dialogue with the Commission in relation to these issues.

We also provide a full range of commercial services to our remote gambling clients, including tax advice, software supply agreements, external lottery manager contracts, specialist terms and conditions and privacy policies, via our cross-referral arrangements with leading corporate commercial law firms.

Remote Gambling Licence Uk

Clients include TGP Europe, Maxgate Software, The Boldwood group , Kootac.N.V, Jennings, Bet Click, Ash Gaming, Play Steak, Pinnacle Sports, Dazzletag Entertainment Limited as well as Aristocrat, Eyecon, Squawka and Globalbet

Please contact Andrew Woods on 07738 170138 or andrew@woodswhur.co.uk if you would like further information.

Please contact Paddy Whur on 07738 170137 or paddy@woodswhur.co.uk if you would like further information.