Gambling in UK: History and Culture
The United Kingdom is home to one of the world’s most developed and culturally significant gambling markets. Sports betting has long been popular across all social classes, while casino gaming, particularly online, has exploded over the past few decades. In this article, I’ll take a look at the history of British gambling, the current landscape, and its likely future trajectory.
Betting and Gambling History and Culture in the UK Explained
Popular early forms of gambling in Britain include various card and dice games, along with animal fighting – particularly dogs, bears, cocks, and badgers. Unfortunately, according to the RSPCA, illegal animal fights are still popular in the British criminal underworld despite the practice being outlawed way back in 1835.
Indeed, organised crime was a major player on the British gambling scene until the mid-20th century – something dramatically portrayed by the global hit TV series Peaky Blinders. The series followed the Birmingham-based Shelby crime family as it built a bookmaking empire around horse racing in the 1920s and 1930s.
Until relatively recently horse racing has been the biggest force behind the evolution of British gambling culture. Illustrating how significant betting is to British horse racing is the impact of the cancellation of the Grand National during the 2020 pandemic. The Guardian newspaper reported the industry lost around £500 million, with bookies taking a £400 million hit.
Reflecting real historical events, in Peaky Blinders, the Shelby family’s underworld bookies gradually transitioned to a legal business following the passing of the Betting and Lotteries Act 1934. This legislation provided a legal framework for gambling activities, allowing the growth of legal betting at racetracks. In the 1960s, further legal changes permitted the opening of betting shops – which would soon become a fixture of high streets across Britain.
Lotteries have also been a fixture of British life for centuries. Although a law passed in 1698 deemed all lotteries illegal unless officially authorised, lotteries have been used to raise money for public projects and good causes since the 16th century. Despite this, it wasn’t until the 1970s that modern-style lotteries were legalised in the UK.
Considering how thoroughly gambling has been woven into British life for centuries, it’s perhaps not surprising that Britain led the way with the first gambling software at the dawn of the online gaming age. Microgaming, an Isle of Man-based iGaming company, launched this and paved the way for the first viable online casinos in the mid-1990s. Interestingly, Microgaming is still going strong today and is the provider behind the hugely successful Mega Moolah progressive jackpot slot.
As dial-up modems gradually gave way to broadband from the turn of the 21st century, internet usage in the UK exploded, and so did online gambling. According to Statista, by 2023, 98% of the UK population had access to the internet. Unsurprisingly, this combination of a deep gambling history and high internet penetration has made the United Kingdom one of the world’s most vibrant online gambling markets.
Legal Framework and Regulatory Bodies
Although the Betting and Lotteries Act 1934 made basic provisions for protecting minors from betting, rules now cover virtually every aspect of the gambling industry. They are designed primarily to protect the vulnerable, ensure fair play for consumers, and prevent organised crime.
The main regulator overseeing the UK gambling industry is the UK Gambling Commission (UKGC). Founded in 2007 and headquartered in Birmingham, this government agency oversees all legal online and offline gambling in the UK. The commission issues all gambling licenses and can fine licensees, or even suspend or revoke licenses.
Before any UK gambling license is granted, the applicant must pay a fee and undergo a thorough vetting process. Depending on the specific license applied for (more on those in a moment), this can include identity, financial, integrity, competence, and criminal background checks. One of the primary objectives is to ensure that all license holders fully understand UK gambling legislation and their social responsibility requirements.
Another UK agency involved in regulating the gambling industry is the Advertising Standards Agency (ASA). The ASA monitors and regulates all commercial advertisements and marketing in the UK, regardless of the industry. Hence, all gambling ads and marketing must comply with its rules regardless of whether they are online, television, print, radio, real-world or anything else.
Notably, the ASA is paying increasing attention to the activities of brand ambassadors and social media influencers. For example, in May 2024, the ASA upheld a complaint against Festival Free Bets and social media influencer Astrid Wett. The issue? In March 2024 she’d posted a picture to X (formerly Twitter) of her at Cheltenham, the famous horse racing festival. Unfortunately for Wett, because she was only 23 at the time, she’d broken its CAP code, which says those appearing in gambling marketing must be (and appear to be) over the age of 25.
Types of Gambling Licenses
Below, I’ll run through the main types of gambling licenses currently available in the United Kingdom.
Operating License
An operating license is required to legally operate most types of gambling within the UK. Three types are available, and some operators may need more than one.
- Non-remote (needed for real-world, or ‘bricks-and-mortar’ gambling businesses)
- Remote (required for online gambling operators)
- Ancillary (additional services not covered by the main license)
Personal Functional License (PFL)
These licenses are required by specific types of personnel working in the UK gambling industry, including:
- Dealers and croupiers
- Cashiers
- Inspectors
- Pit bosses and gaming supervisors
- Security and monitoring staff
Personal Management License (PML)
Individuals holding certain management positions at UK-licensed gambling operators require a PML. These include people responsible for:
- Overall strategy and delivery of operations
- Financial planning, control and budgeting
- Gambling marketing
- Compliance
- Gambling IT and security
- Management of licensed premises
Other Specific License Types
Additionally, there are several other specific license types available in the UK, including:
- Ancillary Remote License
- Bingo Operating License
- Casino Operating License
- Betting (General) Operating License
- Betting (Track) Operating License
- Gaming Machine Technical License and Single Machine Permits
The official UKGC site provides more detailed information, including the fees and variations between the UK’s constituent countries.
Land-Based Casinos in the UK
Despite today’s dominance of online casinos in the UK gambling market, land-based casinos are still popular. In fact, you’ll find land-based casinos and gaming arcades in high streets, retail parks, city centres, and even motorway service stations across the UK. As already noted, all gambling premises, and many of their staff, in the United Kingdom must be licensed by the UKGC.
While small high-street venues tend to offer only slot machines and arcade games, the larger UK land-based casinos offer the full range of popular table games like roulette, blackjack, baccarat and craps. Though still not as large as some casino resorts in the US or Asia, the latest British land-based casinos are taking design cues from Las Vegas, incorporating hotels, restaurants, bars, retail and other entertainment facilities. As of 2024, the biggest land-based casino in the UK was the Aspers Casino at Westfield Stratford City, London.
Additionally, the UK has a long tradition of land-based bingo halls. These started to proliferate in the 1990s when companies like Mecca Bingo took advantage of a glut of cheap large commercial properties – often old cinemas and theatres that couldn’t compete with the new multiplexes.
Online Gambling in the UK
UK online gambling can be broadly sorted into the following categories:
Sports Betting
Unsurprisingly, the most popular sports to bet on in the UK are football, particularly the English Premier League (EPL), and horse racing. However, other popular sports like cricket, tennis, golf, rugby union, and boxing are also very popular. Thanks to technological advances, online sportsbooks now offer features like live streaming, in-play betting, and real-time micro-betting. Over the past few years, many sportsbooks have also started offering esports betting on popular disciplines like CS:GO, League of Legends, Valorant and Rocket League.
Online Lotteries
Several UKGC-licensed lotteries enable Brits to buy tickets online. By far the most popular is the National Lottery – the state-franchised lottery launched in 1994 and now run by Allwyn Entertainment Group.
Online Bingo
Considering the popularity of land-based bingo halls in Britain, it’s no surprise that online bingo has become extremely popular.
Online Casinos
Virtually all UK-licensed online casinos are dominated by slots, but most also offer video poker and RNG-based table games like roulette, blackjack, baccarat, craps, and sic bo. Online casinos increasingly offer live dealer games, like those from Evolution Gaming and Pragmatic Play Live.
Online Casino vs Sports Betting
Sports betting is, by a significant margin, the most popular form of online gambling in the UK. Illustrating this, in February 2023, a YouGov article quoted Global Gambling Profiles data showing that 49% of UK online gamblers spend more than £5 per month on sports and fantasy sports bets. This compared to just 25% for bingo and 18% for casino games.
However, casinos are easier to run for operators when it comes to generating stable revenue. For example, most video slots have a fixed RTP of around 95-97%. Likewise, poker and table games have predictable house edges and attract regular players throughout the year. On the other hand, setting accurate odds for sports events is difficult and betting volume fluctuates significantly – driven by seasonal events like the Premier League, Euros, Grand National and Cheltenham Festival.
Gambling Demographics and Participation in the UK
According to an official UKGC survey conducted between November 2023 and February 2024, 48% of respondents had gambled in some form during the previous 4 weeks. However, if you subtracted those only taking part in lottery draws, the percentage fell to just 27%.
The same report found that males aged 35 to 64 were the demographic most likely to gamble, but again, if those only participating in lotteries are removed, it changes to males aged 18 to 44 years. Interestingly, the overall online gambling participation rate was 36% but fell to 14% when the lottery-only players were removed.
Can Foreigners Participate in Gambling in the UK?
UKGC-registered online casinos and sportsbooks will always list the countries and regions they can’t accept players from. If you are from anywhere else, as long as you meet the minimum age requirement and can verify your ID, you should be accepted. Likewise, non-residents can play at UK land-based casinos – indeed, casinos in British cities, particularly London, attract many tourists.
Economic Impact
Online and offline gambling are major contributors to the UK economy, generating billions of pounds in revenue annually and employing thousands of people.
According to official UKGC figures for April 2022 to March 2023:
- Total gross gambling yield (GGY) for the Great Britain gambling industry was £15.1 billion
- Total GGY for remote casino, betting, and bingo was £6.5 billion
- Total GGY for land-based arcades, betting, bingo and casino was £4.5 billion
- Primary contributions from the National Lottery + large society lotteries to good causes was £2.3 billion
Gambling Taxation
In addition to various gambling duties paid by land-based casinos and betting shops, online operators also pay a 21% Remote Gaming Duty. Of course, those employed by the gambling industry in the UK also contribute a huge amount of income tax, and gambling premises contribute things like business rates to local councils.
Individuals involved with the British gambling industry are also some of the UK’s top individual taxpayers. For example, according to The Times, Bet365 owners, the Coates family, contributed £375.9m in tax during 2023, while Betfred founders Fred and Peter Done coughed up an impressive £204.6m.
Tax Rules for Gambling Winnings
Unlike many other countries, UK gambling winnings are not subject to income tax. This means the winnings you see advertised are what you will actually receive if you strike it lucky.
Social and Health Impacts of Gambling in the UK
According to the British government, approximately 0.5% of adults in England are classed as problem gamblers – although it does disproportionately affect men and those living in deprived areas of the country. While the severity of problem gambling varies, it has the potential to affect mental health, financial well-being, and relationships detrimentally.
A good example of how the UK tackled a serious gambling-driven social problem was the case of FOBTs.
FOBTs offer RNG (random number generator) based casino games like roulette. The first of these was installed by iconic British betting brand William Hill in 1999, and according to the UKGC, by 2012 there were 33,319 FOBTs in betting shops around the UK.
Initially, the proliferation of FOBTs offering casino games caused serious problems. The RTP (return to player) percentage of FOBTs was often much lower than typical slots, being as low as 90% for the former compared to a typical 96% for the latter. This, coupled with the possibility to place single bets as high as £100 led to them being dubbed the ‘crack cocaine’ of gambling.
After intervention from the Department for Culture, Media and Sport (DCMS), in 2019 the bet limit was slashed to just £2. While this did significantly cut problem gambling, several major gambling operators, including William Hill, cited it as a reason for closing hundreds of betting shops. However, others have pointed out that these closures were mainly down to the British public increasingly choosing online betting.
Today, many support services are available to help individuals and families cope with the effects of problem gambling.
- Organisations like GamCare and the National Gambling Helpline offer counselling and support.
- Self-exclusion schemes allow gamblers to ban themselves from gambling venues and websites.
Advertising and Promotion
As mentioned earlier, gambling advertising and marketing are heavily regulated in the UK. The Committee of Advertising Practice (CAP) sets the rules for gambling advertising to ensure it is socially responsible, while the ASA monitors things and takes action against offenders.
Among other requirements, Gambling advertisements and marketing in the UK:
- Must not target vulnerable individuals or mislead consumers about the chances of winning
- Must not portray gambling as a solution to financial problems and not encourage excessive gambling
- Must be clear about the risks involved
- Must not feature people who appear to be under 25
- Must make any significant terms and conditions clear
Responsible Gambling in the UK
Online gambling operators in the UK are compelled to take their social responsibilities very seriously.
- The legal gambling age is 18 for most forms of gambling, including online and brick-and-mortar casinos. All operators are required to verify the age of players to prevent underage gambling.
- All operators must participate in self-exclusion schemes, enabling gamblers to exclude themselves from all UK-licensed sites and venues easily.
- Online platforms must provide tools for players to set deposit limits and access reality checks. Affordability checks are required once certain thresholds are reached.
- Operators must carry out continuous monitoring and updates.
Industry Trends and Innovations
Mobile gambling is becoming increasingly popular with the proliferation of smartphones and high-speed 5G mobile internet. This trend looks set to continue for the foreseeable future, and more games and products are being designed with mobile-optimised features.
AI (artificial intelligence) is set to revolutionise user experience and help operators detect problem gambling. Meanwhile, some operators are adopting blockchain technology to help ensure fair play and transparency.
Overall, the UK looks set to remain a leader in gambling regulation, balancing market freedom with player protection. And, as has happened in the past with countries like Sweden and the Netherlands, other regulators will likely use the UKGC’s approach as a template for their own.
Latest Regulatory Challenges and Developments
Despite the UK’s strict gambling rules, there are ongoing debates about the extent of regulation needed to protect consumers, especially minors. Indeed, several incidents have illustrated the continued need for improvement, which has seen the UKGC fine operators millions of pounds over recent years.
For example, as recently as April 2024, Bet365 was ordered to pay £582,120 for multiple infractions. These included several social responsibility failures and anti-money laundering issues at its online business. And, in January of the same year, Gamesys was hit with a £6 million penalty for social responsibility and anti-money laundering failings.
In an effort to address concerns, in 2023, the Gambling Commission published The Gambling Act Review, which aims to update regulations to address the changing landscape of gambling, especially online. Current proposals include new limits on stakes and stricter affordability checks.
Predictably, the industry has so far responded with mixed feelings. The industry stresses the need to balance player protection with business interests. On the other hand, anti-gambling pressure groups claim the proposals don’t go far enough.
One recent change to UK gambling that seems to be showing signs of success is the Horserace Betting Levy Regulations introduced in April 2017. These saw the levy, which funnels money from betting back into the horseracing industry, adjusted to reflect the reality of online betting better – expanding the levy to cover all bets placed from the UK, regardless of where the operator was. In May 2024, the Horseracing Betting Levy Board announced it expected to receive a record £105 million in contributions despite double-digit declines in horserace betting turnover and racecourse attendance over the past five years.
Frequently Asked Questions (FAQ)
What measures are being taken to prevent money laundering in the gambling industry?
Customers making large deposits must provide an acceptable source of funds documentation (for example, payslips)
Are there limits on how much one can bet online?
Yes. At UKGC-licensed casinos, you will be required to pass affordability checks once you pass certain thresholds.
How do land-based casinos ensure fair play?
Casinos employ extensive security and monitoring measures, including cameras, sensors and trained staff. You probably won’t notice most of them, but they are definitely there.
What are the penalties for breaching gambling advertising rules?
It depends on the seriousness of the infraction. The ASA can only ban advertisements, but the UKGC can issue fines or suspend/revoke licenses if an operator breaks its rules regarding licensing conditions.