Many people don’t know this, but it actually costs quite a lot to offer online gambling services to players in the UK. Sure, there’s the fact that the site might have to pay out for big wins, as well as the money they spend advertising. There’s also something else too though – the cost of the gambling licence every UK gambling site must possess.
On this page, we’re going to look at the gambling licence needed by every site, so you can see how much they cost and why they’re still more than worth it…
The Costs of a Gambling Licence
So, how much does it cost to get a gambling licence? Well, that really depends on how much turnover the gambling company generates. For example, the companies with the lowest turnovers will have to pay an application fee of £5,711 to the UK Gambling Commission, plus they must then pay a yearly fee of £3,748 in order to keep this licence. The bigger names pay much more though. Those with a turnover of £30 million per year or greater pay an application fee of £14,647, plus they then have to fork out £49,219 per year.
If we’re honest though, while these fees might look high, they don’t actually scratch the surface at some sites. The biggest online bookmakers, for example, can easily afford these fees without even breaking sweat. It could actually be said that it’s lower turnover sites who suffer most, as many don’t know if they can afford the fees charged by the UK Gambling Commission. At least there’s a 25% discount in a gambling company’s first year, which helps slightly.
Why Get a Gambling Licence?
Quite simply, it’s a legal requirement. Regardless of whether a site offers pay by phone slots through to sports betting, it must have a licence. If it doesn’t, it is not allowed to accept players from the United Kingdom. Sites found doing so without a licence could find themselves getting huge fines and other penalties, which would far exceed the money they’d spend on their licence.
The other reason why sites pay for the licence is because it shows that they’re legal and trustworthy. Seeing the UK Gambling Commission logo at the bottom of a site’s homepage automatically inspires trust, which therefore means that the customer is more likely to sign up and deposit some money.
Basically, if you see that a site has a licence from the UK Gambling Commission, you can be absolutely sure that every spin of the reels and turn of the cards is a fair and honest one.