Online gambling is a consistently growing industry that’s become one of the most profitable fields you can invest in. The popularity of online casinos, and related activities, has skyrocketed in the last few years. This makes it easy to see why so many people are exploring their options within the online gambling space and looking into growing their businesses to include it.
While there’s plenty to see in the online gambling world, one market tends to stand above the rest when considering size and potential. Of course, we’re talking about the UK! The UK is one of the most popular online gambling destinations. It’s a bustling region with plenty to offer, especially when an active player pool is in question.
The mass interest in online gambling in the region is excellent news for most iGaming companies, but getting your foot in the door of this market isn’t as easy as it seems. To up player safety and give users the best online gambling experience possible, the region enlists the help of the United Kingdom Gambling Commission. This prestigious regularity body is the leading partner in obtaining a gambling license in the UK. If you stick around, we’ll dive deeper into getting a UKGC license and how much it costs.
What a UKGC Gambling License Is
A UKGC license is a document that proves an operator is legitimate. Essentially, it’s a seal of approval that gives players insight into what they can expect from an online casino or betting site. The UKGC thoroughly test operators to ensure their offers are fair and that they adhere to strict online gambling rules and regulations. In turn, this lets visitors know that they can expect timely payments from the platform, fair games, and transparent offers that won’t scam you out of your time and money.
At its core, a UKGC license gives players the one thing they yearn for above all else when visiting online casinos – a sense of security. Whether you’re playing a casual game of Roulette or sharpening your senses to call even the most subtle of bluffs in Poker, the knowledge that you’re on a licensed platform allows you to relax and have a good time. This is a highly coveted commodity in online gambling. Unfortunately, this space hasn’t always had the best reputation when scams are in question. Even today, many shady business practices within the field put players off.
Why Get A UKGC Gambling License
The answer to this question should be pretty obvious by now. As we mentioned previously, the UK remote gambling market is the largest you’ll encounter in Europe. We’d rather not bore you with the numbers in detail, but in simple terms, the UK market has made more than double what Italy, the second-largest online gambling market in Europe, has made in gross gambling yield in the past few years. The potential earnings alone are more than enough to entice any iGaming company to try its luck in this booming region.
Money is naturally the biggest motivator here, but there are other reasons why someone would be interested in obtaining a UKGC remote license. If you’re new to the online gambling scene and eager to prove your worth in one of UK’s biggest industries, getting a UKGC license can easily improve your reputation. As we might have mentioned already, this regulatory body is highly-regarded in online gaming circles. Getting its seal of approval is an easy way to show players and peers alike that you’re a serious contender that’s up to par with the best of them.
Cost and Other Fees
Before we proceed to the numbers part of the equation, it’s best to introduce you to the three types of licenses you can apply for. Since each one comes with specific costs attached, differentiating between them is pretty important.
The first type is the remote casino, general betting virtual events, and bingo license. It allows operators to offer casino games, Bingo games, and fixed-odds betting on virtual events, remotely. The second type is the remote general betting standard real events license. As the name suggests, this license allows operators to offer fixed-odds betting services for real events. Traditional sports betting falls under its scope of operations. The final one is the remote pool betting license. With this type of license, pool betting is allowed. In this category, the total amount staked is divided by the number of winners. It’s a unique type of bet often related to horse racing.
With that covered, the fees attached to the remote casino, general betting virtual events, and bingo license depend on the earning bracket an operator falls into. There are nine brackets involved, with each subsequent one growing to encompass higher GGY. On the low end of these brackets, operators need to pay £4,224 and an annual fee of £4,199. At the top, an operator with a Gross Gambling Yield of £1 billion or more must pay a £91,686 application fee and an annual fee of £793,729. They also need to pay £125,000 for every subsequent £500 million of GGY.
The remote general betting standard real events license uses a 10-bracket system. While the top and bottom brackets remain at below 550,000 and £1 billion or above, the other brackets are separated differently than the last. In the lowest bracket, operators need to cough up £4,693 for the application fee and £5,282 in annual fees. In the top bracket, a £41,243 application fee awaits. The annual fees are £1,077.027, plus £200,000 per additional £500 million of GGY.
The final license type we’ll discuss is the Remote pool betting license. This one also uses a 10-bracket system. The similarities with the previous license end there. The bracket limits and fees here are different. The lowest bracket, which includes operators with GGY below £1.5 million, must pay £938 for the application and £2,406 in annual fees. The top bracket of £1 billion or more comes with a £7,030 application fee. The annual fee is £907,832, plus £150,000 per additional £500 million of GGY.