The new Gambling (Licensing and Advertising) Act was supposed to come into force at the start of October but its commencement was delayed by one month and it will now come into force on 1 November. If you haven’t been following any news regarding the changes that will be introduced with this new legislation it’s high time to get yourself up to speed and we’re here to help you with that!

Let’s start with some basics. Gambling in the United Kingdom is regulated by the Gambling Commission under the Gambling Act 2005. While there were other regulations in the past, this act was the first to regulate remote gambling, i.e. gambling over the internet, TV or through mobile phones. In order to offer gambling services in the country, operators had to apply for a license from the Gambling Commission. However, seeing as many operators were based outside the UK, the commission decided to create a list of jurisdictions it deemed to have equal standards of regulation as those in its own licensing code of conduct. Operators based in a jurisdiction that was included on this “white list” were able to advertise in the United Kingdom. 

This system was very profitable for the operators. If they were already licensed in one of the white listed jurisdictions they didn’t need to deal with the process and costs of obtaining a new license just to offer their games in the UK. Additionally, many operators deliberately opted for licenses in other jurisdictions due to favorable tax laws. Of course, this meant that the UK government was losing out on all those taxes. 

This will however the change in November with the introduction of the Gambling (Licensing and Advertising) Bill and the so-called “point of consumption” tax. According to the new licensing system, all operators that want to advertise and sell on the British market will need to obtain a British license. This change is supposed to increase the protection of UK consumers by subjecting all operators to “robust and consistent regulation”.  Additionally, they would need to pay a point of consumption tax, currently at 15% of gross gaming revenue. 

Dissatisfied with such a high tax rate (comparted e.g. to Gibraltar), many gambling operators have decided to leave the British market instead of obtaining a UK license. This means that many of online casinos that have been accepting players from the UK will either close down completely or only allow new accounts from other countries. 

Originally, the act was supposed to come into force on October 1, but as a result of an ongoing judicial review of the legislation prompted by a challenge from the Gibraltar Betting and Gaming Association (GBGA), this date has been moved to November 1. According to Peter Howitt, chief executive of the GBGA, the new law together with planned tax changes will drive consumers towards unregulated or poorly regulated market, leaving them unprotected, while the Gambling Commission will effectively become industry’s global regulator. 

It’s still unknown whether the judicial review will affect the launch of new regulation further or will it cause any serious changes to the legislation, but the situation should clarify within the next couple of weeks.