Gambling in the United Kingdom


Gambling in the United Kingdom is regulated by the Gambling Commission on behalf of the government's Department for Culture, Media and Sport 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 islands for the first time.
Gambling for centuries has been a main recreational activity in Great Britain. Horse racing has been a favourite theme for over three centuries. It has been heavily regulated. Historically much of the opposition comes from evangelical Protestants, and from social reformers.
On 8 December 2020, Nigel Huddleston MP announced a call for evidence to begin the Gambling Act Review.

History

Gambling for centuries has been a main recreational activity in Great Britain. Horse racing has been a favourite theme for over three centuries. The earliest recorded races were held at Chester in 1539. King Charles II was an avid sportsman who gave Newmarket its prominence – he was a jockey in 1671 and built a palace there for his convenience. Ascot Racecourse started in 1711 under the patronage of Queen Anne. By 1750 the Jockey Club was formed to control the Newmarket, preventing dishonesty, and making for a level field. The five classic races began with the St Leger Stakes in 1776. Epsom Derby began in 1780. The availability of railways facilitated the rapid growth of the sport, making travel easy for the horses and running specials that attracted large audiences.
Gambling has been heavily regulated. Historically much of the opposition comes from evangelical Protestants, and from social reformers.

Gambling forms

Bingo and casinos

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.
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.
The Gaming Act 1968 liberalised the law, paving the way for more commercial casinos. The first very popular game was Chemmy, popularised 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. On 29 March 2007, the House of Lords urged the Government to review plans for the super casino in Manchester. Instead it supported plans for 16 smaller casinos, including ones in Solihull and Wolverhampton. In 2007, then Prime Minister Gordon Brown said that the Government would not be proceeding with the super casino in Manchester.
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.

Gambling on sports

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 are over 1,000 betting shops located in London.
There is a large market in the United Kingdom for gambling on competitive sports at bookmakers 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 to 2012 of approximately 7%. The total online gambling population in the UK is estimated at 2.1 million customers.
Sports gambling is advertised on television at times when children and young people are watching. There are calls for the government to control this. Dr Heather Wardle, a gambling behaviour expert from the London School of Hygiene and Tropical Medicine, said, "It’s hard to prove what harm is being done because it’s a generational thing and the harm comes much further down the line. We’re creating the conditions that normalise gambling for a generation". The gambling industry has announced voluntary curbs on television advertising. Stephen van Rooyen of Sky UK, maintains the TV ad ban is meaningless unless the industry also curbs advertising on other media. Rooyen stated, "The gambling industry are ignoring the fact they spend five times more on online marketing than they do on TV. By cutting TV ads, they’ll simply spend more online, bombarding people’s smartphones, tablets and social media feeds with even more gambling ads. A proportionate and responsible limit to gambling advertising across all media is the right thing to do". The voluntary reduction also does not prevent shirt sponsorship, ads that run around hoardings in stadiums, so that gambling firms will still feature prominently during live sport.
Simon Stevens, then-chief executive of the NHS, said in 2013 that he "disapproved of eight betting firms" because "they do not pay towards NHS costs in countering gambling addiction."

Lotteries

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 organisers 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".

National Lottery

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 59, 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.
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:
CombinationsOddsAllocation of winnings
6 numbers1 : 45,057,474
52% of remaining prize fund
5 numbers and the bonus ball1 : 7,509,578
16% of remaining prize fund
5 numbers1 : 144,414
10% of remaining prize fund
4 numbers1 : 2,179
22% of remaining prize fund
3 numbers1 : 95
£30
2 numbers1 : 9.3
£2
1 number1 : 2No win

Health Lottery

In February 2011 the media tycoon Richard Desmond announced the launch of a new Health Lottery, with the aim of raising a minimum of £50 million each year for health-related charities. Tickets cost £1 each and 20% of ticket revenues go to the charities involved.

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

are small pieces of cardboard 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 revealed in order to win.

Amusement arcades

The Gambling Commission identifies three types of amusement arcades
In 2009/2010 the FECs made up 81% of the arcade sector in gross gambling yield.