United Kingdom

Online gaming in the UK is defined as gambling in which people participate by using "remote communication such as the Internet, telephone, television, radio and any other kind of electronic or other technology for facilitating communication." Online gaming, as well as all other types of gambling in the UK, is regulated by the Gambling Act of 2005. The UK’s objectives with its licensing structure are to: prevent problem gambling, ensure that online gambling is fair, and to protect children and other vulnerable people from the harms of gambling.

Operators may locate their facilities in the country and offer all types of online gaming including poker, sports and race betting, as well as casino games and online slots. Operators must abide by the remote and gambling software technical standards as outlined by the Gambling Commission.

There are six types of online gambling operating licenses operators may apply for: a casino operating license, a bingo operating license, a general betting operating license, a pool betting operating license, a betting intermediary operating license, or a lottery operating license. Operators who wish to operate more than one type of gaming need only apply for one betting license type.

To apply for an operating license, applicants must pay a fee along with their application plus an annual fee should the operating license be granted. Both the application fees and annual operating fees are based on the type of license and are on a sliding scale based on gross gambling yield.

According to the 2009/2010 Gambling Commission Industry Statistics, the number of licensed operators increased from 366 in 2009 to 432 in 2010. The Commission attributes the increase to society lottery operators obtaining licenses. The amount wagered on online gaming activities, excluding betting exchanges, was a little less than GBP 11,000 million.

The Gambling Act 2005 includes many conditions and codes concerning problem gambling and requires online gambling licensees to establish policies and procedures for promoting socially responsible gambling. These policies must be published and include how the operator will contribute to the research into the prevention and treatment of problem gambling, to public education on the risks and safety of gambling, and to identification of problem gamblers and their treatment. Operators must also clearly state on their website where players may seek help for problem gambling. Employees of online gambling operators must ensure their employees are properly trained on identifying problem gambling and have procedures in place for addressing customers on this matter. Online gambling operators must also give their players the ability to exclude themselves from their services and advertisers must comply with the advertising codes of practice as to not promote irresponsible gambling behavior, including underage gambling.

Under the 2005 Act, the promotion of international online gambling in the UK is an offense except for "whitelisted" countries including those in the European Economic Area or any other country or place that has reached an agreement with the UK to offer its services to UK residents. At the time of this writing, the whitelisted countries outside the European Economic Area include: Alderney, Antigua and Barbuda, Gibraltar, Isle of Man, and Tasmania.

Online gaming is taxed at a rate of 15% of the operator’s gross profit. For a betting exchange, poker site, pr pool/pari-mutuel operator, the tax rate is 15% of the operator’s commission.