Gambling License Australia

Gambling License Australia

Gambling Laws Australia

Australia has been enjoying legalized gambling since its first casino, The Wrest Point Hotel Casino, opened in February 1973. Since then it’s become a well-known fact that Australians are among the world’s biggest gamblers with roughly 80% of Australia’s residents engaged in gaming activities of some kind. There is at least one casino in each region offering a wide range of gambling products. Overall, Australia enjoys an active and legal gambling system which is quite liberal.

Gambling and Licensing

There is no single gambling authority which regulates gambling throughout the whole of Australia. Instead, each of the eight mainland States and Territories individually regulate gambling activities within their respective jurisdictions. There is also a series of Federal statutes which cover aspects of gambling activity throughout Australia.

Each State and Territory has a relevant Casino Control Act (or similar legislation) under which casino licences have been issued. Throughout Australia, the ACMA is the body responsible for media and communications regulatio, including monitoring and enforcing the regulation of gambling online and over the telephone.

Below is a list of the organisations which regulate gambling in each area:

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On the other hand, online gambling in Australia is handled by the Commonwealth. The Interactive Gambling Act was passed in 2001 and made it illegal to offer games such as poker and online casino games to Australian players. With this being said, Australian-based companies are allowed to offer these online games to players outside of Australia.
The only form of online gambling which is completely legal is betting on auto racing, sports betting, and online lotteries. However even sports and auto racing betting may only take place before the game and not during the actual event.

The following licences generally apply:

Operator licences are required for casinos, retail wagering, lotteries, keno, and instant lotteries.

A bookmakers licence is required for sports and racing bookmaking and typically includes fantasy sports betting.

A gaming venue licence and a permit/license for each gaming machine is required in order to operate gaming machines within Australia. The number of gaming machines in each state and territory is strictly regulated and the number of machines one venue is allowed to operate is limited based on the type of licence. For more information visit https://www.sa.gov.au/topics/business-and-trade/gambling/gaming-licences/gaming-machine-licence

Poker which takes place outside of a casino is permitted, provided that no person gains a percentage or share of the amounts wagered.

Bingo laws and licences differ between states and territories.

Maintaining Your Licence

Operator licences are typically long-dated but the duration of a major operator licence depends on the legislation within each state and territory. Gaming machine licences generally don’t expire except in Victoria where they are valid for 10 years. Casinos must go through a periodic licence review, generally every five years. Overall, fees and licence renewal really depends on the state or territory.

Whilst revoking and suspension of licences is generally quite low, all gambling related licences carry strict requirements relating to responsible gaming, including very strict advertising laws. For example, a large Australian gambling company had to pay a civil penalty of AUS $45 million to Austrac for admitted breaches of the AML/CTF Act. Failure to comply with Austrac can result in civil penalties and possible criminal exposure.

In order to make sure your gambling business complies, you’ll need to have certain systems and controls in place:

Customer identification
Proper record keeping
Providing Austrac with information about financial transactions
Reporting any suspicious customers or activities
Assessment of money laundering and terrorism financing risks
Having a AML/CTF program in place

Australia is working on tighter regulations in relevant gambling and related laws, including unlawful gambling events.

Reporting Requirements

The main body involved in investigating prohibited gambling activity is the Australian Communications and Media Authority (ACMA). They manage a formal complaints process where you can report any suspicious activity or complaints via their online complaint form. Many of the individual state and territory authorities also offer online forms.

Gambling Licence Australia - signing document

Anti-money Laundering

The money laundering and terrorism financing regulator in Australia is Austrac. Austrac is an Australian Government agency which forms part of the Home Affairs portfolio and reports to the Minister of Home Affairs. All suspicions of money laundering and/or terrorist financing must be directed to Austrac. Money laundering and terrorism financing can result in civil penalties and possible criminal exposure.

Corporate Tax

All companies are subject to a federal tax rate of 30% on their taxable income. This excludes small businesses which are subject to a rate of 27.5%.

Gambling Licence Australia - tax time sbs. com. au

Gambling Tax

Gambling taxes in Australia depend on the relevant licence, product and state/territory. Casino taxation is determined on a case-by-case basis. At the Australian Government level, the gambling tax is payable at a rate of one eleventh on the player loss of a gambling business – this applies across all forms of gambling. However, the four main types of gambling (wagering, gaming machines, casinos, and lotteries) are taxed differently by each state/territory government.

Casinos, wagering and gaming machines are taxed based on player loss (a measure of revenue) at a rate of 20% – 35%. Lotteries however are taxed far more heavily than any of the other forms of gambling, with tax rates on player loss ranging from 45% – 90%.

Winnings are not taxed in Australia as they are not seen as a form of income.

Australian licensed online casinos

Online casinos are banned in Australia and for this reason, no legal list of casinos exist.

Australian licensed land based casinos

Northern Territories
Mindil Beach Casino and Resort: Darwin
Lasseters Hotel Casino: Alice Springs

For more information:
As gambling is regulated by state and territory, you can review the links under the “Gambling and Licencing” heading.

Get in touch:

I have years of experience with gambling hosting, casino games, Curacao gambling licensing and online casinos

FURTHER INFORMATION ON CURACAO GAMBLING LICENSES

We wrote an article on Curacao Gambling License which may be of interest to you should you be looking for alternative casino licensing information.

Gambling License UK

Gambling License UK

The UK has one of the safest gambling and betting platforms in the world. Gambling is completely legal and governed by strict laws which are regularly checked and updated. Hearing this, it might surprise you to hear that the UK online gambling industry was unregulated up until 2005. In most countries, this is still true. However, the UK put in place new licensing laws and now runs a fully legal and secure online gambling and betting platform alongside its land operations. Everyone who wishes to provide a gambling service must adhere to the laws in place and must carry a license. In order to apply for the license, companies are required to demonstrate that they have several protections in place in order to prevent crime and protect its customers.

Gambling and Licensing

Gambling in the United Kingdom is regulated by the Gambling Commission. This is done on behalf of the government’s department of Culture, Media and Sport under the Gambling act of 2005. They cover most gambling except spread betting and other forms of index betting – which falls under the financial conduct authority.

In order to open and run gambling services in the UK, one must apply for a license through the Gambling Commission and pay a registration fee. The commission has an online application process available in order to streamline the process. You can expect an operating license application to take around 16 weeks to process, assuming you have supplied all the correct information and documents. If the application is rejected due to incomplete information, your registration fee will be refunded and you will receive a letter explaining which documentation was missing. You will then have to re-register and include the missing documents.

Gambling License UK Costs

Setting up a licensed casino is an involved process and the cost depends on how much work you are prepared to do yourself. If you were to use a consultant to go through the process for you, expect to pay around €25,000.

So what will a consultant assist you with?

  • Complete Process – Administration and Application (excluding UKGC fees)
  • Drafting a business plan
  • Financial prognosis
  • System documentation

Once the UKGC license has been issued a number of ongoing compliance requirements need to be met to ensure that the license is maintained without encountering any issues with the UKGC. Expect to pay €1200 per month to a good management company to maintain this for you. Services would include:

  • Submission of quarterly custom funds report
  • Calculation of submission of gaming tax
  • Submission of ad hoc forms and notifications to the UKGC in case of any information security bnreaches or other key events.
  • Liaising with the UKGC as required and informing the client accordingly of any new changes/devel-
    opments;
  • Notification of any changes in corporate control.
  • Submission of any ADR (Alternative Dispute Resolution) cases;
  • Attending UKGC meetings as required;
  • Updating / Changing of company Policies and Procedures as may be required by UKGC regulations
    or internally;
  • Ongoing review of changes made to website text and adverts, to ensure they are compliant with UKGC requirements
  • Submission of any suspicious betting activity.

Note other fees may apply such as VAT and office expenses.

Maintaining your UK License

In order to maintain your license, you will have to pay a yearly fee. This licensing fee varies depending on factors such as your annual gross receipts, the type of establishment, the number of establishments, and so on.
For example: A remote gambling site who allows patrons to bet on horse races and earns more than £500 000 but less than £5 million would pay around £7169 per year.
If you’d like to know more regarding the specific fees for your services you can contact the Gambling Commission via their website.

All annual fees are due within 30 days after your license has been issued, and then every year following. You can even pay your fee online via the commission’s eService. If your license fee is not paid on time, your license will be revoked following which you will have to reapply.

Once you have applied for and received your license it will last indefinitely unless it is:

  • Revoked
  • Suspended
  • Lapses, due to bankruptcy or death for example
  • Forfeit for example in the case of a court order following conviction of a relevant offence
  • Surrendered by choice

Reporting Requirements

Gambling and betting services are required to report to the Gambling Commission in certain areas. These include:

  • Alternative dispute resolution – licensed gambling operators are required to meet certain standards when handling complaints.
  • Anti-money laundering
  • Change of corporate control
  • Information on security breaches
  • Protection of customer funds
  • Suspicious betting activity (betting license holders only)

This list is not exhaustive and for more information one can visit the commission’s website. The website contains a full list with links to information on how each one works.

UK Gambling anti-money laundering

This is one area where the commission is strict on reporting. They require that any gambling operation keep up to date with assessments of money-laundering risks and management. This includes making sure the appropriate policies, procedures, and controls are in place. As an operator, it is your responsibility to keep financial crime at bay. This is particularly pertinent for remote and non-remote casinos that have additional responsibilities under the Money Laundering Regulations 2007. A key requirement is for these casinos is to make checks on customers.

UK Gambling Tax on casinos

Corporate tax, as of the 2015 budget, sits at 18% for 2017, 2018, and 2019. This tax is due to drop to 17%  as of 1 April 2020.

Gambling operations are subject to different duties which fall under seven categories.  All these duties have the same general structure in that the operator is taxed on the net profits. This means that the tax is levied as a percentage of the net amount received by the operator, less the amount which has been paid out to players in the form of prizes or winnings. Gambling sites are required to pay a 15% levy on their earnings.

UK Gambling Software Testing

All gambling software and remote operating license holders in the UK must comply with the commission’s technical standards and requirements. These include pre-release testing of games and RNG’s, post-release performance monitoring, annual information security audit and annual games testing audit. The Gambling Commission’s website contains all the information in a pdf format. This also includes testing fame fairness, field product certification and information security.

UK Licensed Casinos

The UK offers a wide range of popular online casinos.

Genesis Casino
LeoVegas
Play Ojo
FansBet
Grosvenor Casinos

Non UK Licensed Casinos

Many casinos are licensed outside of the UK. Popular licensing jurisdictions include Curacao, Malta, Kahnawake which are essentially grey markets.

Alternatives to a UK Gambling License

The UK is known for its beaurocracy and this is a downfall for UK licensed casino operators who can become overwealemed by the seemingly endless beaurocracy that a UK Licensed casino will demand. As a result of this many operators have been looking abroad to license in less beaurocratic jurisdictions. A Popular choice is to obtain a Curacao license or white label.

How to contact the UK Gambling Commission

info@gamblingcommission.gov.uk Tel: 0121 230 6666

Get in touch:

I have years of experience with gambling hosting, casino games, Curacao gambling licensing and online casinos

FURTHER INFORMATION ON CURACAO GAMBLING LICENSES

We wrote an article on Curacao Gambling License which may be of interest to you should you be looking for further information.