The main reason why the UK has such a vibrant iGaming scene is that it started to regulate it early on. In other words, they had the chance to test different approaches, see their outcomes, and adapt accordingly. Although the UKGC has managed to create a safe environment for gamblers, some of its methods might be considered too extreme.
For example, registering on GamStop automatically denies you the chance to place bets or play casino games on UKGC-regulated sites. This is a good thing for problem gamblers, but every now and again, you would want to place a bet on a big match, just to up the stakes and enjoy it more. As a result, many gamblers picked a sportsbook from a list of sports betting sites without verification, as these weren’t affected by GamStop’s register. In a way, UKGC influenced other players to look for sites that are based overseas. But that’s not the only way in which gambling laws impacted player behaviour.
Role of the UK Gambling Commission
In general terms, UKGC needs to license, regulate, and advise gambling businesses. To be more specific, they need to ensure that those gambling operators that are allowed to work have the capacity to provide the following:
- Safe player environment (SSL encryption for protecting data, have funds to cover winnings, have responsible gambling tools, age restriction, etc.)
- Fair games (hosting games from audited providers certified for fairness)
- Prevent money laundering (strong KYC and AML policies, transparency of ownership structure)
- Setting advertising boundaries (the activity cannot be portrayed as a means of gaining wealth, and it cannot be marketed to a younger demographic)
UKGC also needs to fine brands that aren’t compliant or fail to operate within the prescribed regulatory framework. These fines can be quite hefty and happen more often than you think. There is a whole page on the UKGC’s website listing who and why got fined. On top of fines, they can also revoke someone’s license, like they did with Bet Butler. They do this when a brand is deemed weak or fails to meet certain regulatory standards.
How UK Betting Laws Affect How We Bet
Betting laws allowed sportsbooks to expand their repertoire, and to keep gamblers continuously engaged. For example, betting on races used to be limited to on-premise bookies, and you could only gamble when there was an actual sports event happening. That changed when it was made legal to place bets on pre-recorded events. In other words, bookies can keep their businesses running, even at times when there are no actual racing events.
The commission also regulates who and how they can bet. For starters, bettors need to be at least 18 years old, and they need to confirm their identity in accordance with the sportsbook’s KYC policy. Finally, there are some rules on how this entertainment can be advertised:
- Commercials cannot encourage this behaviour
- It is forbidden for commercials to exploit aspirations or susceptibilities
- It must not portray gambling as a solution to financial problems
- Gambling cannot be linked to enhanced attractiveness or sex appeal
- Gambling cannot be advertised as part of youth culture, and cannot feature actors who are young or look young (under 25 years)
Winnings Under UK Gambling Law
One thing Brits appreciate is that they don’t have to pay tax on gambling winnings, and there are some solid explanations why it is so. To put it simply, if winnings are taxable, then it would be fair for losses to be claimed on tax returns. If that were the case, then it would seem that the government is incentivising socially irresponsible behavior by giving tax cuts.
The gambling businesses, on the other hand, are taxed regularly. Retail sportsbooks pay 15% tax on their profits, while remote gambling sites pay 21% tax. Also, if it turns out someone is a professional gambler and makes money for a living through gambling, then their winnings will likely be subject to income tax, the basic rate is 20%.
Withdrawal Rules and Regulations
One advantage of using UKGC-licensed casinos is the withdrawal rules. According to the Gambling Commission, operators need to allow players to withdraw their deposits at any time. This means even if they have an active bonus.
You do not have the same privileges when using overseas sites. When you agree to the terms and conditions, you might be required to wager your deposit in its entirety, or even two or three times. Also, claiming a bonus would also mean accepting the wagering requirements, which again prevent you from cashing out your winnings.
Responsible Gambling
One of the main goals of the UKGC is to reduce gambling harm to at-risk and problem gamblers. This is done through the previously mentioned advertising restriction, but it’s also done through the implementation of responsible gambling policies and tools. For starters, Casino sites always need to state that gambling can be harmful, and include some helpful education resources on how it those harms can be averted.
Additionally, sites have responsible gambling tools that allow players to set limits on their spending, losses, and playtime. There is a reality check feature as well that shares stats on how much money the player has spent, won, and lost. Operators also need to follow up with users who have had a lengthy game session and check if they are spending abnormal amounts of cash. Finally, players can set a cool-off period to hit pause on this hobby, or apply for self-exclusion through GamStop.
Recent Regulatory Changes and Their Impact
At the start of 2025, some additional changes to regulations came into effect. These had to do with player safety and financial checkups. Based on new rules, if a player’s monthly net spending reaches £150, a financial checkup will be triggered. What this means is that you’ll have to provide additional documents on your earnings in order to justify the high expense. This isn’t too bad on its own, but many view it as an excuse to gather more sensitive data.
Another change has to do with game slot design. The games need to be slower, and features that lead to irresponsible spending, like auto-play and turbo mode or quick spins, need to be removed. Additionally, win probabilities need to be displayed or communicated more clearly., So this is actually a good change, but it will likely limit the number of available games in online casinos. After all, it will take time before all these adjustments are pushed to live servers.
