1. The British Gambling Market: Gambling Regulations in Great Britain
Andrew Danson
7th December 2018

2. The British Gambling Market
Comparative legal study
Long-established regulated commercial gambling sector
Cultural acceptance of gambling as a form of entertainment for adults
2,820 operators licensed by the Gambling Commission, 360 of which operate across more than one sector (as at 31 March 2018)
£14.4bn total Gross Gambling Yield (GGY) of the Great Britain gambling industry (Apr 2017-Mar 2018)
All of this activity is regulated, all of the revenue is taxed.

3. Regulated British Gambling Revenues
Source: Gambling Commission industry statistics

4. Regulated British Gambling Revenues
Source: Gambling Commission industry statistics

5. British Regulatory Framework
Gambling Act 2005
Regulates almost all forms of gambling, online and offline:
Betting (except spread betting)
Gaming
Lotteries (except the National Lottery)
Created a statutory regulator – Gambling Commission
Established a licensing regime for commercial betting and gaming
Regulates the advertising of gambling
Three key licensing objectives
Protecting children and the vulnerable
Keeping crime out of gambling
Fairness for consumers
Creates offences
Regulates at point of supply AND point of consumption

6. Gambling Commission Dedicated statutory regulator
Single regulator for commercial gambling and National Lottery
Licensing regime
Operating licences
Personal licences
Premises licences
National Lottery licence
Licence Conditions and Code of Practice
Significant amount of published documents and guidance
Broad powers of investigation and enforcement
Licence suspension/revocation
Unlimited fines
Enforcement activity increasing exponentially

7. Advertising Regulation
Principle – lawful gambling may be advertised
Heavily regulated
Gambling Act 2005
Unlawful gambling – not licensed in GB when should be
Children
Licence Conditions and Codes of Practice
ASA Codes – CAP and BCAP
Similar approach to that taken to alcohol
Focus on social responsibility and protection of children
Gambling Industry Code for Socially Responsible Advertising
message
Watershed (sports and bingo exception)
Others, e.g. misleading marketing laws

8. Licensed Commercial Gambling
Betting & Gaming
Betting
Sports betting
Event betting
Lottery betting
Betting exchanges
NOT spread betting (regulated by the FCA)
Gaming
Casino games
Slots
Poker
Bingo

9. The British Lottery Market (1)
National Lottery
Established by National Lottery Act 1993
Regulated by the Gambling Commission
Long term exclusive licence
Same licensee (Camelot) since launch in 1994
Current licence expires 2023
New tender process to launch next year
£1.5bn in contributions to good causes (Apr 2017-Mar 2018)

10. The British Lottery Market (2)
Charity Lotteries
"Charity Lotteries"
Large Society Lotteries
Ticket sales capped at £4m per draw; £10m per year
Jackpot capped at greater of £25k and 10% of proceeds (£400k)
Minimum 20% of proceeds to good causes
Require Gambling Commission licence
£296m in contributions to good causes (Apr 2017-Mar 2018)
Small Society Lotteries
Ticket sales capped at £20k per draw; £250k per year
No need for Gambling Commission licence, but must register with local authority
Government consultation on increasing sales and prize limits
"Umbrella" society lotteries
Local Authority Lotteries
Exempt Lotteries

11. The British Lottery Market (3)
Secondary Lotteries
Betting on lotteries
Permitted with Gambling Commission licence
No limit on stakes or prizes, no requirement to fund to good causes
No betting permitted on UK National Lottery or Euromillions
Lottery Brokerage
Not really present in UK market, unlike Germany
External Lottery Managers can manage charity lotteries
Lottery Syndicates
Syndicate organiser owns tickets; members have contractual rights
Permitted, with no licence needed
Lottery Messenger
Legal grey area; not currently enforced

12. Thank you Andy Danson Partner andy.danson@twobirds.com
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