Any online casino you gamble at should be licensed. If you read any guide to choosing an online casino, step one should always be ‘make sure a website is licensed’. However, very few go into depth on why an online casino should be licensed. So, this is our mission today..
We are going to assume that you’re gambling in the UK – but this information is important if you’re planning to set up a gambling operation in the country, too.
What is an Online Casino Licence?
Most countries with legalised gambling have a government-run licensing authority. In the UK, this is the UK Gambling Commission, or UKGC for short. The job of the licensing authority is to oversee gambling and ensure that everything is operating above board.
Legally, at least in the UK, an online casino cannot offer services to customers within that country if they are not licensed. Take the best online poker sites, for instance. None of these websites could legally operate within the UK if they weren’t licensed by the UKGC, and if they didn’t go through the rigorous process to gain a licence.
What is the job of the licence? Demonstrating that an online casino has committed to following all the required rules in the country they are licensed in. This means, in theory, you should be better protected.
Licensed online casinos in the UK also help to prevent gambling-related crime, money laundering, and problem gambling – all of which are major issues in the country. While we won’t focus heavily on this here, it’s important to note that online casinos play a role in reducing specific crimes. For example, money laundering happens far less frequently in licensed casinos.
Why is an Online Casino Licence Important?
There are a variety of reasons why having an online casino licence is so important. For starters, it is a legal requirement. As we said, an online casino cannot offer services to customers in the UK if it is not licensed by the UKGC. Simple as that. Since the UK is one of the top gambling markets in the world, any company that wants to tap into that market needs to buy the licence.
There are plenty of benefits for gamblers, too:
- Licensing ensures that the games are fair. As part of the licensing process, online casinos need to have their games regularly inspected for fairness and keep logs of the games on their site. So, when you gamble at a licensed online casino, you know that the games you’re playing have not been manipulated in any way. You have a fair chance of winning.
- Licensing ensures that a website is secure. We won’t go too much into the requirements for site security here. Just know that online casinos need to make sure that their customer data is properly protected, both when data is being sent back and from a website.
- Online casinos need to ring-fence any customer funds. If an online casino has financial issues, your funds will always be protected. However, since no major online casinos have ever gone out of business, it is tough to know how strong this requirement is. We can imagine it is, though, since it is one of the main focuses of the UKGC.
- Online casinos should be working hard to prevent problem gambling. This is a major problem in the UK. Any licensed online casino has a variety of tools at its disposal to prevent this from happening, or at least reduce the chances of it happening. If an online casino doesn’t work hard enough to prevent these issues, it will be fined massively.
- If you have any issues with an online casino, the licensed casino needs to help you out. They have a legal requirement to do so. If they do not help you adequately, the UKGC will step in. Online casinos loathe when the UKGC steps in, so they will always do their best to lower the chances of this happening.
Should You Ever Gamble at an Unlicensed Online Casino?
No. Simple as that. If an online casino is unlicensed, you should never gamble there. An unlicensed casino didn’t properly test their games. It might not handle your money well. And you are much more likely to become the victim of a scam.
Remember – if you’re in the UK, an online casino shouldn’t even be offering you their services if they are unlicensed. We know it happens (they are licensed in other countries), but we still wouldn’t risk it.
Final Thoughts
If you’re running an online casino, you have a legal requirement to get licensed. It is an expensive and time-consuming process, but it needs to be done. And if you’re a gambler, all online casinos you gamble at should be licensed. The site licence protects you from any issues.