Gambling in the United Kingdom

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Gambling in the United Kingdom is regulated by the Gambling Commission on behalf of the government's Department for Culture, Media and Sport (DCMS) under the Gambling Act 2005. This Act of Parliament significantly updated the UK's gambling laws, including the introduction of a new structure of protections for children and vulnerable adults, as well as bringing the burgeoning Internet gaming sector within British regulation for the first time.

Gambling forms[edit]

Bingo and casinos[edit]

The game of Housie was popularised in the armed forces in the Second World War and brought back to Britain after the end. The Betting and Gaming Act 1960 allowed commercial bingo halls to be set up, provided they were established as members-only clubs and had to get their take from membership fees and charges rather than as a percentage of the entry fees.

A Mecca bingo hall in Birmingham.

Casinos had a similar history, with requirement for licensing from the Gaming Board of Great Britain and for casinos to be members only clubs. The number of gaming machines in casinos was limited at 10. The Casino Club Port Talbot in Wales - believed to be Britain's first legal casino - was established in 1961 by gambling mogul George Alfred James. James opened several casino-cum-cabaret and fine dining establishments in the 1960s, including the Charlie Chester Casino and Golden Horseshoe in London and the Kingsway and Grand Casino in Southport.[1][2]

The Gaming Act 1968 liberalised the law, paving the way for more commercial casinos. The first very popular game was Chemmy, popularized by the Clermont Club, in London.

The Gambling Act 2005 paved the way for larger resort style casinos to be built, albeit in a controlled manner with one being built every few years until the Act is fully implemented. Many towns and cities bid to host one of these so-called "super casinos", which will be similar to those found in Las Vegas. On 30 January 2007 Manchester was announced as the winning bid to be the location of the first super casino. The House of Lords urged on 29 March 2007 the Government to review plans for the massive super casino in Manchester. Instead it supported plans for 16 smaller casinos, including ones in Solihull and Wolverhampton.[3] In 2007, then Prime Minister Gordon Brown said that the Government would not be proceeding with the super casino in Manchester.[4][5]

Gaming machines are divided into a number of categories, mainly depending upon the stakes and payouts involved, and whether there is an element of skill (these are known as AWPs or "Amusement with Prizes" machines).

Gambling on sports[edit]

A Ladbrokes betting shop in Rawtenstall, Lancashire.

Sports gambling has a long history in the United Kingdom, having been controlled for many decades, and more recently relaxed. The 1960 Act legalised off-course bookmakers. Pool betting on horses is a monopoly of The Tote.

There is a large market in the United Kingdom for gambling on competitive sports at bookmakers (betting shops) or licensed websites, particularly for horse, greyhound racing and football. The last of these also has an associated form of gambling known as the football pools, in which players win by correctly predicting the outcome of each week's matches.

The online sports betting market in the UK is estimated to be worth £650 million which has seen a compounding annual growth rate from 2009 - 12 of approximately 7%. The total online gambling population in the UK is estimated at 2.1 million customers. [6]

Lotteries[edit]

A statute of 1698 provided that in England lotteries were by default illegal unless specifically authorised by statute. The aim of the statute was that before the era of mass and efficient communications, those running national lotteries could claim to one part of the country that the winner lived in another, and do the same the other way: thus taking all the stakes and paying nothing out.

A 1934 Act legalised small lotteries, which was further liberalised in 1956 and 1976, but even then severely limited in the stakes, and the geographical scope that they could cover, so there could be no chance of the lottery organizers deceiving the bettors. There could be no big national lottery until the Government established one, however.

Other countrywide lotteries do exist, but work by dividing the prizes and stakes strictly on a geographical basis into small areas and thus technically not becoming a national lottery. The Gambling Commission called the Health Lottery in 2010 "a very fine line" and insisted it would only be legal if split into at least 31 separate, identifiable schemes so as not to become "a de facto National Lottery".[7]

National Lottery[edit]

The United Kingdom's state-franchised lottery is known as the National Lottery, which was set up under government licence in 1993.

Several games are run under this brand, including Lotto and Thunderball. As with other lotteries players choose a set of numbers, say 6 from 50, with six numbers then being drawn at random. Players win cash prizes depending on how many numbers they match.

The National Lottery launched a pan-European "super-lottery", called EuroMillions, in 2004. Currently this is available in nine countries.

EuroMillions tickets.

In the United Kingdom, the national lottery has so far raised several billions of pounds for Good Causes, a programme which distributes money via grants. 28% of lottery revenue goes towards the fund, along with all unclaimed prizes. Additionally, 12% goes to the state. The prize fund is 45% of revenue, with the remaining 15% going towards running costs and profits for the lottery organisers and ticket sellers.

The odds of specific combinations occurring in the United Kingdom national lottery are as follows:

Combinations Odds Allocation of winnings
6 numbers 1 : 13,983,816
52% of remaining prize fund
5 numbers and the bonus ball 1 : 2,330,636
16% of remaining prize fund
5 numbers 1 : 54,201
10% of remaining prize fund
4 numbers 1 : 1,032
22% of remaining prize fund
3 numbers 1 : 57
£25
2 numbers 1 : 8
No win
1 number 1 : 2 No win

Health Lottery[edit]

Main article: The Health Lottery

In February 2011 the media tycoon Richard Desmond announced the launch of a new Health Lottery,[8] the aim is for The Health Lottery to raise a minimum of £50 million each year for health related charities. Tickets cost £1 each and 20p in the pound goes to the charities involved.[9]

Postcode Lottery[edit]

Main article: UK Postcode Lottery

The UK Postcode Lottery is in aid of charity, and works by using an entrant's postcode plus a unique three-digit number as their ticket number. Prizes are drawn every Thursday.

Scratchcards[edit]

Scratchcards are a very popular form of gambling in the United Kingdom, due to their easy availability and cheap price. These are small pieces of card where an area has been covered by a substance that cannot be seen through, but can be scratched off. Under this area are concealed the items/pictures that must be 'found' in order to win.

Amusement arcades[edit]

The Gambling Commission identifies 3 types of amusement arcades

  • adult gaming centres (AGCs)
  • licensed family entertainment centres (FECs)
  • unlicensed FECs.

In 2009/2010 the FECs made up 81% of the arcade sector in gross gambling yield.[10]

Gambling in other venues[edit]

Remote gambling[edit]

Until the Betting Gaming and Lotteries Act 1960 off-course betting in person was illegal, but bets by telephone were legal since this was not considered, by the letter of the law, "resorting to a house kept for the purpose of betting".[11] However, it was frequent for "bookie's runners" to take and run bets from a public telephone to the bookmaker himself.

Remote gambling is growing in popularity in the United Kingdom. According to the survey conducted by the Gambling Commission, as of March 2010, 10.7% of the 8,000 adults surveyed said they had participated in at least one form of remote gambling in the previous 4 weeks. In 2009 the figure was 10.5%, in 2008 – 7.2%, in 2007 – 8.8%, in 2006 – 7.2%. The major part of these gamblers was represented by those playing the National Lottery online. Upon their exclusion, the figures are 5.7%, 5.7%, 5.6% and 5.2% respectively.

All forms of online gambling are licensed by the Gambling Commission and therefore can be legally provided in the country under a licence from the Commission. The Commission's site has details of both licensed operators and applicants.

Many bookmakers such as Betfair, Ladbrokes and William Hill have offshore operations but these are largely for overseas customers since no tax is due on winnings of bets in the UK. Before 1981, a 10% levy was paid on bets at an off-course bookmaker (but none at a racecourse) and this could be paid "before" or "after" i.e. on the stake or the winnings, the proceeds going to the Horserace Totalisator Board. Many would advise you, as a tipster, to "pay the tax before" since it is a smaller amount, but mathematically it works out the same since arithmetical multiplication is commutative. This tax was abolished with the general reform of the gambling acts.

Licenced premises (pubs)[edit]

See also: Pub games

Until the Gambling Act 2005, the Betting Gaming and Lotteries Act 1963 prohibited "betting and the passing of betting slips" in licenced premises, that is those licenced to sell alcohol. Six specific games, Pool, Cribbage, Darts, Bar billiards, Shove-halfpenny and Dominoes could be "played for small stakes on those parts of the premises open to the public". A notice to the effect had to be posted in a prominent place.

It is legal to place bets via mobile phones from a pub, even through the pub's wi-fi connection, but only for oneself, not for another.[12] It is also legal for publicans to have pools coupons or other slips available, but not to take the bets themselves.[12]

Publicans must also be vigilant in ensuring that their customers do not pass betting slips between each other but only bet for themselves. In general, it is illegal for the holder of a licence to sell alcohol to facilitate betting on the premises.[13]

Most pubs in the UK have a one-armed bandit of one kind or another, but the prizes are strictly controlled. The law allows larger prizes in private clubs.

Economy and taxation[edit]

"Betting duty" at 6.75% was applied to sports bets until 2001 when it was replaced by a 15% tax on gross profits.[14]

From 2014 there will be changes to the taxation of remote gambling from a 'place of supply' basis to a 'place of consumption' basis.[15]

Income from gambling currently makes up a small part of the Economy of the United Kingdom.[citation needed]

The betting industry alone is reported to contribute £6 billion as of January 2010, 0.5% of GDP. Furthermore it employs over 100,000 people and generates £700 Million in tax revenue.[16]

Age restrictions[edit]

Type of gambling Minimum age Legislation
Gambling in casinos or other licensed gambling premisis
It is illegal to permit any person under the age of 18 to enter a licensed gambling premisis; Only exception: A licensed family entertainment centre
18 Gambling Act 2005 - Part 4 Protection of children and young persons - 46 Invitation to gamble: (1)
Gaming machine
(Machine category: A, B1, B2, B3, B3A, B4, C)
18 Gambling Act 2005 - Part 4 Protection of children and young persons - 46 Invitation to gamble: (1)
Gaming machine
(Machine category: D)
None Gambling Act 2005 - Part 4 Protection of children and young persons - 46 Invitation to gamble: (2) (e)
National lottery 16 National Lottery etc. Act 1993
Scratchcards 16 National Lottery etc. Act 1993
Football pool None Gambling Act 2005 - Part 4 Protection of children and young persons - 46 Invitation to gamble: (2) (d)
(Private) Lottery None Gambling Act 2005 - Part 4 Protection of children and young persons - 46 Invitation to gamble: (2) (c)
Equal chance gaming in accordance with a prize gaming permit, or
Equal chance gaming at a licensed family entertainment centre
None Gambling Act 2005 - Part 4 Protection of children and young persons - 46 Invitation to gamble: (2) (f) and (g)
Prize gaming at a non-licensed family entertainment centre, or
Prize gaming at a travelling fair
None Gambling Act 2005 - Part 4 Protection of children and young persons - 46 Invitation to gamble: (2) (h) and (i)

Notes[edit]

  1. ^ "The Father of British Casinos: The George Alfred James Story". Retrieved 14 March 2014. 
  2. ^ Roberts, G. (18 October 2013). "Story of Port Talbot man who changed the world of gambling has been uncovered". South Wales Evening Post. Retrieved 14 March 2014. 
  3. ^ Walker, Jonathon (29 March 2007). "Casino bid hit by Lords vote". Birmingham Mail. Retrieved 14 March 2014. 
  4. ^ Quinn, Ben; Wilson, Graeme (12 July 2007). "Gordon Brown scraps super-casinos". Daily Telegraph. Retrieved 14 March 2014. 
  5. ^ "Brown U-turn over plan for supercasino". The Guardian. 12 July 2007. Retrieved 14 March 2014. 
  6. ^ Hudson, James (12 January 2014). "UK sports betting market growth & mobile betting". Favourit. Retrieved 18 January 2014. 
  7. ^ "Decision of the Regulatory Panel Following a Hearing". 2 September 2010. Retrieved 14 March 2014. 
  8. ^ "The Health Lottery". Retrieved 14 July 2013. 
  9. ^ "The Health Lottery || Lottery Good Causes". Retrieved 14 July 2013. 
  10. ^ Gambling Industry statistics 2009/2010
  11. ^ Herbert, A. P. (1935). "The Postmaster-General vs. Slot. The Bookmaker's Telephone". Uncommon Law (1st ed.). Methuen Publishing. p. 333. 
  12. ^ a b Allen, Poppleston (18 June 2013). "Legal Checklist: Betting activity in pubs". Morning Advertiser. Retrieved 14 March 2014. 
  13. ^ "Facilitating betting in pubs is illegal". Gambling Commission. 25 August 2010. Retrieved 14 March 2014. 
  14. ^ Telegraph http://www.telegraph.co.uk/finance/2736634/Punters-rally-as-betting-tax-ends.html
  15. ^ HMRC http://www.hmrc.gov.uk/gamblingtaxreform/index.htm
  16. ^ Deloitte: UK betting worth £6bn, 100,000 jobs

See also[edit]

References[edit]

External links[edit]