Online Casino Industry and Regulations in United Kingdom

History of Online Casinos in the UK

Gambling in the UK goes back to the 17th century, with the first known gambling house, the Whites, being established in 1693. Some 130 years later, the famous Crockfords Casino, which still operates to this day, opened in London. Several Gaming Acts were passed over the years, but it was not until 1968 that commercial casinos were given licenses.

The biggest revolution came with the rise of the Internet, however, in the early 1990's and in 1994, the first ever online casino launched. It was called the Gaming Club and its online content was provided by the then-small software development company Microgaming. Since then, other web-based casinos and gambling-oriented software providers started to emerge, with the market really exploding in the 2000's. By then, online payments and Internet security had made playing on such platforms safe and convenient.

Today, there are hundreds of online casinos that cater to the needs of UK-based gamblers. Gaming lobbies include all types of games you can think of – classic slots that remind traditional fruit machines, virtual roulette, blackjack, baccarat, craps and poker games, video poker variations, lottery, and bingo games, scratch cards, and even live dealer games that are streamed to user computers or mobile devices in real time.

Within just two decades, the industry saw huge developments and from the first casino games which had only basic, very simple graphics, today we have 3D games with bonus rounds and other features, mobile slots, and even augmented and virtual reality innovations have been introduced.

Legal Environment

The single most significant legal development in the UK gambling industry was the establishment of the UK Gambling Commission in 2005. The Gambling Bill was passed into law that same year and it referred to online gambling. Currently, all forms of online gambling are allowed and regulated, with operators required to obtain a license from the Gambling Commission.

The regulatory body overlooks almost all gambling and betting businesses in the country and approves offshore operations. It also prosecutes businesses and individuals for any breach of the guidelines outlined in the Gambling Act of 2005. There are also restrictions on gambling advertisement.

Licensees have to meet a range of requirements and conditions in order to be granted a permit to offers their services to UK-based players. Customers, on the other hand, are allowed to play real-money casino games online provided they are of legal age (18 years or older).

Growth of the UK Online Casino Industry

Much like anywhere else in the world, the online casino industry in the UK is growing at a fast pace, especially in the past few years. According to the latest data published by the www.casinogamespro.com/online-casinos and Gambling Commission in May 2018, the regulated gambling industry generated a gross gaming yield (GGY) of £13.9 billion between October 2016 and September 2017. The total GGY of the remote gaming sector – online betting, bingo, and casino games, was almost £4.9 billion.

These figures demonstrate that remote gambling has, in fact, the largest market share, at 35.2%, with betting shops coming in second (24%) and the National Lottery is third (22%). Casino games are the largest sector within remote gambling as during the reported period it generated £2.7 billion. Online slot games are apparently extremely popular among gamblers in Great Britain – their gross gaming yield is £1.8 billion.

With mobile appearing to be the fastest growing trend in online gambling, most analysts predict that the future of web-based casinos and slot games lies within this newer and exciting realm. Players can now register accounts in online casinos, make deposits, and play all their favorite games from any hand-held device.