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The UK boasts one of the best online gambling industries in the world, thanks to its strict rules and effective safety regulations. Being one of the top industries in the UK, online casinos generate considerable revenue for the British economy, and the gross yield increases almost every year. 

Since online gambling became legal in the UK, the industry has grown steadily. A wide variety of online casinos, sports betting platforms, and other iGaming services are available to players today. Casino comparison sites, like GoodLuckMate, are also gaining popularity. The Gambling Act of 2005 was the first set of regulations introduced in the UK, and they were formulated keeping the rights of both players and game developers in mind.

Today, strict action is taken to prevent underage gambling, and developers need a license before establishing an online casino. Keep reading this article to learn more about the legal landscape of online casinos in the UK.

Current Regulations in the UK

The Gambling Commission was the first authority formed to regulate gambling in the UK. It came into existence after the 2005 Gambling Act and has been a prominent part of the casino industry ever since. The laws and regulations in practice today focus on different aspects like fraud prevention, advertisement limitations, underage gambling prevention, and money laundering checks.

The barriers to entry for customers have increased, and players need to verify their credentials thoroughly before they are allowed on any online casino. Verification has become more robust, increasing players’ privacy and security. Players cannot join any online gambling platform without proper documents that prove the customers’ names, addresses, dates of birth, and in some cases, financial information.

Latest Updates by the Gambling Commission

There have been a few recent updates to existing regulations by the Gambling Commission. These came into effect on the 12th of September 2022, aimed at protecting the privacy and security of at-risk players. Since gambling can be addictive, it is essential to regulate it properly. 

Online game providers must highlight any indicators that can pose a risk to certain customers so that they can be dealt with timely. It is prohibited to market online casinos to players who are struggling with addiction. Also, casino platforms are required to keep a check on the indicators that can lead to problems for online casino players.

Game providers are required to comply with all of these updates thoroughly. All of these regulations are focused on at-risk customers only, so it is unlikely that they will significantly affect the market as a whole.

Compliance Requirements

When it comes to compliance requirements, there are two main regulations that online casinos need to follow. These are Anti-Money Laundering (AML) and Know Your Customer (KYC); their details are discussed below.

Anti-Money Laundering (AML)

The Anti-Money Laundering (AML) regulation requires game developers to conduct due diligence to prove that their customers are exactly who they portray themselves as. Operators are legally required to ask for a government-issued ID, a utility bill, and a bank statement from their customers. 

Any customer who refuses to provide any of the above-mentioned documents will not be allowed to gamble online. This rule applies to all variants of online gambling, including sports betting.

Know Your Customer (KYC)

The Know Your Customer (KYC) regulation has a similar purpose to AML but focuses more on certain aspects. The KYC regulation makes it necessary for operators to ensure that their customers are from the UK, are above the legal gambling age, and have no history to suggest they have an issue with problem gambling.

Latest Policies Regarding AML and KYC

The UK government has implemented new strict policies to eradicate money laundering from the gambling industry completely. Other than the official identity documents and bank statements, players must also submit proofs of insurance policies (if applicable), and those who frequently make transactions in high-risk countries are closely monitored.

If there is any discrepancy whatsoever in the information provided by players, operators are required to report it immediately to the authorities. Failure to do so can lead to strict action against both the players and online casinos. 

So, it is essential for all online casinos o stay up-to-date with AMC, KYC, and other gambling regulations. Companies that fail to keep up with new regulations are bound to face penalties and hefty fines, and some may even be forced to leave the industry.