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What Laws Lend Themselves to the Process of Playing on a Foreign Resource

Our fellow citizens rush to visit international gambling sites to have an increased chance of winning at the start. But how to achieve this and what should be taken into account?

Our country is one of the main hubs of the European gambling industry, the UKGC licence is desired by new establishments from Canada and the USA, as it offers acceptable terms of cooperation and stable regulation. The UK is known for its balanced legal system and consistent resolution of controversial issues. In addition, tolerable tax rates are offered. It is also important that the UK licence is valid in most Western countries. The pros are many, but you should not forget the competition.

There are other licensing centres and they may seem more attractive due to fast registration, lack of bureaucratic delays, low taxes and the possibility of short-term cooperation. Foreign-registered establishments usually give their clients impressive welcome bonuses, free spins, offer to participate in lotteries and draws. It should be remembered that English laws control not only the game in establishments registered in our country, but also in casinos that have received foreign registration and based abroad. In order not to get into a difficult situation, you need to be guided by the current laws and comply with them. In this article we will describe in detail what laws are controlled by the game on a foreign resource. To do this, we need to understand the peculiarities of our certification system: who is obliged to obtain a permit, and for whom it is optional.

What laws apply to a player

When you register on a foreign portal to play for money, the law of the Kingdom “On Gambling” and “Tax Code” starts to apply to you. That is, first of all, you need to familiarise yourself with these documents, more precisely with the sections where the rights and obligations of the player are outlined. On the basis of the mentioned law, adopted in 2005, a special commission was formed, the purpose of which is to control, monitor, collect information and correct gambling processes. An interesting fact is that the organisation is not a governmental body and acts separately. Bookmaker betting, lotteries, slot machines, and live games fall under the commission’s jurisdiction. UKGC interacts primarily with gambling organisers. If the company has an official authorisation, you can play on their site without any problems. If, however, the organisation is operating illegally, it will be fined or ordered to cease operations if detected. You will suffer indirectly in this case, as it will not be so easy to get your money back. The refund procedure is worked out only for licensed legal entities. Check the personal licence is very simple, go to the casino site, copy the number and enter it into the form at the link, the search is also possible by owner’s name or account number. If you are unsuccessful, go to the “Contact us” section and get counselling.

What licences a casino must obtain

For the player, it’s simple: you just need to be a UK citizen and be fully 18 years old to start playing for money, no special authorisation is required. But the organisers have to perform a number of registration actions to legalise their activities. First of all, an operating licence (OL) must be obtained to run a gambling business. Consultants, strategists, privateers need to obtain a Personal Management Licence (PML), which is a permit for people who present special gaming services. There is also a Personal Functioning Licence (PFL), which is obtained by employees of the gambling industry, for example, croupiers who conduct live games: poker, blackjack, roulette. There’s also an additional licence for online advertising and targeting if it applies to UK nationals. The bigger the company, the more it will pay for licensing. The licence is valid for 5 years. The rate is calculated on a progressive scale. At the moment the size of the registration fee is from 1 to 14 thousand GBP. And the cost of the licence itself can reach 35 thousand GBP. It is necessary to submit about 20 documents on the official website of UKGC, the package is considered for more than 3 months. It becomes clear why many small companies are not in a hurry to register in our country, players are also increasingly choosing platforms that allow them to make profit with the lowest commissions. Due to lower registration costs, international sites provide a good list of promotions available to all participants.

  1. Operating Licence (OL):
    • Required to operate a gambling business in the UK.
    • Allows you to operate a casino and conduct gambling.
  2. Personal Management Licence (PML):
    • Required for consultants, strategists and privateers in the gambling industry.
    • Permits the provision of specialised gaming services.
  3. Personal Functioning Licence (PFL):
    • Required for employees in the gambling industry, such as croupiers.
    • Permits participation in the conduct of live games such as poker, blackjack, roulette.
  4. Internet Advertising and Targeting Licence:
    • Required for online casino advertising, especially if targeting UK nationals.

What foreign licences does the UK recognise

In the UK, it’s legal to play on casino sites with foreign authorisation, and knowing which licenses are valid is important. Curaçao, an island country in the Caribbean, is favorable for large gaming platforms due to its low tax rate (2-3%) and inexpensive licenses, although companies are subject to inspection. Kanawake, in Canada, offers annual licenses for $40,000, making it appealing for small and medium-sized firms. Malta’s license is highly regarded, placing operators on the British regulator’s white list, with stringent protections for player data and funds under the Responsible Gaming Policy (RGP), and encrypted transactions.

A Kanawake license lasts for five years. Gibraltar, demanding only 1% of gambling plan businesses’ revenue, grants licenses rarely, requiring operators to demonstrate financial solvency and stability. When visiting a casino site, check its license; if it’s from Curaçao, Kanawake, Malta, or Gibraltar, you can expect immediate legal protection. Also, consider the return-to-player (RTP) percentage of slots or live games, with 96-97% being desirable.

Tax when playing at a foreign casino

UK citizens playing at foreign online casinos are exempt from a specific gambling tax. However, if annual income, including gambling winnings, exceeds £12,500, it must be declared. For incomes over £12,500, a tax of 20% on total profits applies. Non-disclosure of income can lead to penalties under the tax code, as casinos accepting UK players pay taxes and report player winnings to the UK treasury. Winnings under £10,000 generally needn’t be reported, but amounts above this should be declared. If income exceeds £50,000, a 40% tax rate is applicable. The tax rate for RGD gambling establishments is 21%. Those with incomes below £12,500, including those receiving benefits, with disabilities, or under guardianship, are not required to declare and are exempt from tax on casino winnings. When using foreign gambling sites, avoid VPNs to protect money transfers. Utilize encryption systems like Trustly for added security, with crypto transfers being the safest. Withdrawal methods are usually listed on the casino’s main page.

Free play in international casinos

UK residents can legally play in international casinos for real money, as no law prohibits it. These casinos cater to international visitors and offer bonuses upon account funding, which must be wagered within a time limit, typically two weeks, through slot machines, live games, or sports betting. Each game type has specific bonuses, and promo codes can unlock additional features. Creating multiple accounts is prohibited, and during registration, players confirm their account is singular. Withdrawals are usually quick, though large wins, except jackpots, are paid in instalments as per the casino’s policy, detailed in the “Terms and Conditions” section. When choosing between UK and international casinos, consider bonus sizes and connection speed, as delays can hinder the gaming experience.

Functions of the new framework document

On 6 December 2023, the Gambling Commission and the Ministry of Culture, Media and Sport (DCMS) signed a “framework” document outlining their governance cooperation. Though not mandated to act jointly, they agree to collaborate for mutual benefit. This document, relevant to UK citizens interested in remote gaming, indirectly applies to casino users, outlining the organisation’s responsibilities towards players. In disputes, contact the Commission or law enforcement, coordinating with the UKGC. Minors are prohibited from gambling, with parents or guardians responsible for their actions. To prevent underage gambling, especially online, real data must be provided during registration for accurate age verification; failure to do so may result in account blocking and payment cancellation. This emphasizes the importance of protecting minors from gambling opportunities, particularly in the anonymous realm of online gaming.

Let’s summarise

UK residents can play on foreign gambling sites with few restrictions. It’s crucial to seek help from rehabilitation organisations for gambling addiction. UK gamblers are governed by the “Gambling Law” and “Tax Code,” mandating compliance with online conduct and timely tax filing. Earnings under £12,500 are tax-exempt, negating the need for a tax return. Always verify the licensing of foreign gambling sites; popular licenses include Curacao, Canavake, Malta, and Gibraltar. Unrestricted site access suggests legality in the UK. Choose GBP for convenience when registering and adhere to site rules to avoid account blocking and ensure timely fund withdrawal. Avoid creating multiple accounts for extra bonuses, as this leads to blocking. Prioritize safety with encrypted transactions and rely on information from official websites.

What laws lend themselves to the process of playing on a foreign resource