How Does UKGC Make Money?


13 Oct 2020

Updated: 24 Apr 2023

As you step into the world of gambling, both online and “on-land”, you will discover how much impact a regulatory body will have. The volatility of gambling games and problems that come with gambling are quite a handful and require sufficient regulations.

The United Kingdom Gambling Commission hereby set out to regulate gambling activities in the United Kingdom. While at this, the commission depends on certain means to keep up with their financial running and other official commitments. All of these commitments are germane to the execution of the commission’s objectives. Hence, it is okay to give to Caesar what is Caesar’s.

From taxes levied on gambling operators, to fines for violating certain regulations, issuing licences and investments from the government, follow us as we take you through every one of the means employed by the United Kingdom Gambling Commission (UKGC) to make money.

#1 Taxes From Gambling Operators

We kick it off with the commission’s first funding medium, which will be the taxes levied on gambling operators. This would come first as the regulations set in place by the UKGC are aimed at placing necessary restraints to ensure gambling is done responsibly. Their first contact in their bid to enforce these regulations will be the gambling operators as they provide these gambling services to the public directly. Thus, the taxes the commission receives from these gambling operators are well in place.

There has always been an amount paid by gambling operators as the tax on their income. There is the Remote Gambling Duty which is levied on remote gambling operators. The RGD has always been 15% of remote gambling operators’ earnings until recently. Now, a new measure stands regarding this tax on remote gambling operators.

This fresh development gave birth to an increase in the Remote Gaming Duty (RGD) rate. This increment came along with the UK government’s 2019 budget. And, effective since October 2019, the RGD rate increased from 15% to 21%. This increment was announced a year before then, in May 2018. And, this prior announcement allows remote gambling operators enough time to adapt to this new increment.

The Remote Gaming Duty will be enlisted into the Finance Bill 2018-19 to modify section 155(3) of the 2014 Finance Act. The rate will be rectified to indicate the raise from 15% to 21%. Following the enforcement of this change, this newly increased RGD has been paid by remote gambling operators, since October 2019. Consequently, this tax payment generates a good share of the money made by the UKGC.

#2 Fines For Not Using Gamstop

We proceed from taxes to fines, which is another way the UKGC makes money.

It is included within the domain of the commission's duties to maintain strict surveillance on all the casinos, both those that operate online and those that operate on land. Therefore, compelling them to follow all the applicable regulations and protocols. As a part of this, penalizing casinos that err comes in to ensure gambling remains a cautious exercise.

There are a number of regulations the commission has set in place to ensure gambling stays responsible as much as possible. One of these numerous regulations is Gamstop. And fines are in line for errant casinos or bookmakers not registered with GamStop self-exclusion accepting British punters. To every casino, Gamstop is one regulation they must not flout as past offenders have gone on to be made examples. We have quite a number of these cases of offenders and the fines the UKGC placed on them accordingly.

  • Ceasar's Casino recently got a fine of 13 million GBP for neglecting to prevent money laundering and permitting problem gamblers to continue gambling. These offences infringe on the rules put in place by the UKGC to ensure the public gamble responsibly.
  • Two different gambling operators got suspended and further fined for failing to implement Gamstop the right way.
  • Betway likewise got hit with a fine of 11.6 million for similar errors.
  • Daub Alderney also got fined almost 7.1 million GBP for irregularities pointing towards indulgence of criminal activities.
  • For failing to set measures in place towards preventing problem gamblers, William Hill got a fine of 3 million GBP from the UKGC.

All these are a few amongst several other cases of fines issued by the UKGC on flouters of their set regulations. Largely, the funds received as fines by the UKGC from UK casino not on GamStop are used in enlightening gamers on cautious and responsible gambling activities.

#3 Issuing Licences

There is a list of gambling activities that gambling operators are restricted from carrying out until they receive licence from the UKGC. Hence, the issuance of licences opens up another outlet for the United Kingdom Gambling Commission to make money. The reality for gambling operators is that they cannot operate to a large extent without receiving the appropriate licences. Chief amongst these licences is that of the UKGC.

This medium helps the gambling commission make money in two different ways. First is through the issuance of fresh licences and the other is through annual fees paid to renew the issued licence yearly.

Every licenced gambling operator is required to pay an annual fee to guarantee that their operating licence stays acceptable. As a gambling operator, you are allowed to make this payment online via their eService, or through BACS. Failure to pay your annual fees leads to the forfeiture of your licence. And when this happens, you must reapply for a new licence, and until the new one is issued, you have no rights to the specific gambling activities authorized by the licence.

#4 Investments From The Government

Asides the different methods they employ to make money, they also receive investments from the government. The government as another major stakeholder in the running of this commission's activities contribute their own quota to the running of the gambling commission. They do this by investing in the commission, thereby creating more funds for the UKGC.

This medium is the last on our list and we can truly say that we saved the best from the last as the investments made by the government make up a huge part of the commission finances and bolsters the smooth delivery of every bit of the commission's regulatory activities. It happens that this gambling commission is as good an earner outside as it is inside.

The United Kingdom Gambling Commission takes the lead on the frontline in the fight against every single harmful gambling activity opening different blockers on a free basis. That stands detrimental to the financial health of the public. As they do their duties, there is a need for the injection of funds to keep them moving. This need is why they expect to make as much money as they can and they do just that through the methods we have explained here.

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