The UK’s online gambling industry has experienced massive growth in recent years, establishing itself as a major player in the global market.
Reports reveal that the UK’s online gambling market hit £6.5 billion in gross gambling yield (GGY) in 2023, with online casino games contributing £4.0 billion, of which £3.2 billion came from slots games.
What’s more? The UK has become the second-largest online gambling market globally. Industry experts predict that the market will cross £12.7 billion by 2032 at a CAGR of 4.6%.
If you are an iGaming operator looking to open an online casino in the UK, this is a great time to invest.
This post will discuss how you can open an online casino in the UK.
Understanding Legal Requirements and Gambling Laws in the UK
First, let’s explore the UK’s legal requirements and gambling laws. It can help you know about the necessary licenses you need to get to establish a successful online casino in the UK.
The Role of the UK Gambling Commission
The UK Gambling Commission (UKGC) is an independent regulatory entity established under the UK Gambling Act 2005. All gambling platforms must hold a license issued by UKGC to operate legally in the UK.
Besides, the UKGC is responsible for tweaking or implementing changes to the national gambling regulations, such as the recent proposals in the UK’s gambling white paper. Proposals target various aspects of the gambling industry, such as slot limits, VIP customers, and financial risk checks (affordability checks).
Key Gambling Laws and Regulations
Here are the key UK gambling regulations and laws that iGaming operators must comply with.
- Gambling Act 2005: It is the legal framework for all forms of gambling in the UK, including online gambling.
- Gambling (Licensing and Advertising) Act 2014: This law requires all iGaming operators in the UK to obtain a license from the UKGC, irrespective of their physical location.
- Data Protection Laws: Operators must comply with the General Data Protection Regulation (GDPR) to ensure customer data safety.
- Age and Location Verification Requirements: Operators must verify that the players are at least 18 years old and from permitted jurisdictions. Implementing Know Your Customer (KYC) procedures and utilizing geolocation technologies can help ensure compliance with regional laws.
Obtaining a UK Gambling License
Obtaining the appropriate licenses from the UKGC is mandatory to operate legally in the UK. There are three main types of operating licenses that gambling operators should consider.
- Remote License: The UK remote gaming license allows operators to offer casino games and gambling products to customers via online platforms, such as websites, mobile apps, or TV.
- Non-Remote Gambling License: This license allows operators to conduct betting activities at physical locations like betting shops, tracks, or courses.
- Ancillary License: This license is for operators providing betting services via telephone or email.
Licensing is required even if an operator’s online gambling platform is based in a different region. This means operators must obtain a license if they offer services in the UK.
The Application Process with the UK Gambling Commission
Here’s the application process to open an online casino in the UK.
- Disclosure: You must submit detailed information about their business structure, financial health, and key management personnel.
- Assessment: The UKGC conducts a thorough evaluation to check the business and its key personnel.
Required Documentation and Eligibility Criteria
Here’s what you need to provide.
- Business Plan: You must outline your operational strategy, target market, and financial projections.
- Financial Evidence: You need to demonstrate financial stability and funding sources.
- Policies and Procedures: You must have measures for anti-money laundering (AML), social responsibility, and fair gaming practices.
- Personal Declarations: This includes disclosure of any criminal records or previous bankruptcies.
Costs and Timeframes for Approval
- Application Fees: It can vary based on the type and scope of the license. For instance, an operating license application fee is calculated based on the chosen activities and payable upon submission.
- First Annual Fees: The first annual fee is due 30 days after the license is issued and can be paid online.
- Approval Timeframe: The UKGC processes operating license applications within 16 weeks, provided all required information is submitted at the point of application.
UK’s New Customer Interaction Guidance for Remote Gambling Licensees
In August 2023, the UKGC introduced an updated customer interaction guidance for remote gambling operators. Operators in the UK must implement these measures (effective from October 31, 2023).
The key goal of this guidance is to reduce gambling-related issues by ensuring operators have effective systems to interact with customers.
Here’s what it states.
- Identify: Operators must monitor customers and use harm indicators to flag the ones at risk.
- Act: Operators should take suitable actions based on the identified risk. This can involve automated systems or manual interventions, keeping records of all interactions, and continuing to track the situation.
- Evaluate: Operators must review the actions and see their effectiveness. If not, further intervention may be needed.
Marketing and Advertising Guidelines
Operators must follow strict advertising standards to protect vulnerable players, including minors, from being influenced by gambling ads. The ads should not mislead. Instead they should give a clear message. Marketing must comply with the UK Advertising Codes, overseen by the ASA (Advertising Standards Authority) and CAP (Committees of Advertising Practice). Failure to comply with the rules will impact the online casino business.
International Expansion and Licensing
Operators expanding to new markets need to meet specific legal requirements related to licensing, taxes, and regulations. Operators based outside the UK must provide a credit report and any licenses issued by other jurisdictions.
Setting Up the Online Casino Business in the UK
Here are the key aspects that will help set up an online casino platform in the UK.
- Business Registration: First, registering your online casino business in compliance with the UKGC is mandatory. Select a structure that suits your business goals, such as a sole proprietorship, partnership, or corporation.
- Business Bank Account: Open a dedicated business bank account to manage your online casino’s finances. This will help manage your online gambling transactions while ensuring security and transparency.
- Online Gambling License: Understand the key considerations for the license shared previously to apply for, and obtain an operating license from the UKGC.
- Choose a Software Provider: Once you have registered the business and have a license, work on providing the best user experience (UX) on your betting site. Choose a reliable iGaming software provider that offers robust features like self-exclusion tools, deposit limits, etc. Check out the top casino sites in the UK to understand how they promote responsible iGaming. This can help build a seamless UX and improve your brand’s credibility.
- Provide Various Games: Offer online casino games, such as poker, slots, roulette, and more.
- Include a Secure Payment Gateway: Provide secure and diverse payment options, including credit and debit cards, e-wallets like PayPal, and cryptocurrencies. The online casino website must have robust fraud prevention mechanisms and quick transaction processing.
- Ensure Data Privacy and Security: Implement security mechanisms, such as SSL/TLS encryption, two-factor authentication, and more to ensure player data safety. Moreover, your platform must adhere to the UK’s data protection laws, including GDPR.
- Mobile-Friendly Design: Most real-time players access online casinos via their mobile phones. So, ensure the online platform is responsive and works across devices like smartphones, tablets, etc.
These steps can help you adhere to UKGC’s guidelines for fair play, data security, and responsible gambling.
Marketing and Customer Acquisition
Once your online casino is registered, licensed, and built, the next step is to make efforts to attract and create a loyal customer base. The following iGaming content marketing and customer acquisition strategies can help you achieve the goal.
1. Leverage SEO Tactics to Rank Your Casino
Implementing the right SEO strategies can increase your casino’s online visibility and boost rankings in the SERPs. For instance, you can:
- Target high-volume keywords like “UK betting sites,” “best online casino UK,” “casino online UK,” and “top online casino in the UK.”
- Publish informative, well-researched blogs, guides, and FAQs to build authority and drive organic traffic.
- Ensure fast page load times, mobile optimization, and secure HTTPS protocols.
2. Use Social Media for Engagement
Social media platforms like Facebook, Instagram, and Twitter can help engage players and build your brand’s reputation.
Here’s how to make the most of social media for your online casino:
- Create compelling social posts on responsible gambling, industry news, and promotions.
- Encourage user-generated content, such as game reviews or success stories.
- Run targeted ad campaigns, adhering to the UK Advertising Standards Authority (ASA) guidelines. The ads must not mislead potential players or appeal to minors.
3. Drive Traffic Through Affiliate Marketing
Affiliate marketing is one of the most powerful ways to acquire new customers. However, you must track the affiliate performances to ensure profitable partnerships. The process could become draining and require resources.
That’s where state-of-the-art affiliate management platforms like Affnook can help you. Affnook helps streamline campaigns, identify high-performing affiliates, and track ROI effectively. Optimizing affiliate campaigns can help you maximize gross gaming revenue (GGR).
It offers:
- A user-friendly, centralized dashboard where you can manage affiliate campaigns.
- Granular, real-time reports to track campaign ROI.
- Advanced fraud detection tools identify and prevent click fraud by affiliates. This ensures your marketing budget is spent on genuine traffic and conversions.
- Flexible commission models, such as CPA, revenue share, or hybrid structures, to incentivize affiliates.
Provide 24/7 Customer Support
Offer 24/7 customer support to help and resolve issues and concerns of real-time players. For instance, players might need help troubleshooting technical problems, understanding payment or withdrawal processes, and resolving account-related concerns.
So, ensure you have a team to offer dedicated support via channels like live chat, email, and phone. Furthermore, you can implement an AI chatbot to help players with common concerns, such as withdrawal process, account recovery, etc. This will reduce wait time during peak hours.
Conclusion
Opening an online casino in the UK is straightforward if you understand the responsible gambling laws, obtain the necessary license, and create a platform that adheres to UK gambling laws. The tips and tactics outlined in this post can help ensure everything complies with iGaming legal compliance standards.
The next step is to market and acquire customers. Affiliate marketing can help you achieve a loyal customer base. Implementing affiliate management software like Affnook can help you get started.
Get in touch with team Affnook for more details.
