Online Gambling Landscape and Regulations in the USA and the UK Compared

By: Josh Taylor, Guest Contributor
March 22, 2024
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The gaming and betting industry is no longer a new concept, and it is firmly continuing to gain momentum. If we take a broader look at the global market, we can see that today's gambling industry is worth more than $231 billion (Statista). 

As a result, many land-based casino venues are looking for ways to expand their reach and exposure by expanding their activity to the online space. The same goes for the adoption of gambling laws and regulations. 

Precisely, bans and restrictions imposed on gaming platforms in some regions are being relaxed, and in those where they were absent at all, governments gradually started to introduce new ones. For a clearer view, we will compare the regulatory peculiarities concerning gambling laws in the UK and the USA. So, get comfortable and let's begin. 

The Current State of Gambling and Sports Betting in the UK

Online gambling remains popular in the UK, with the National Lottery being the most-wagered online activity, but sports betting is also a major player. Especially common among the UK players are casino platforms with no min deposits due to their accessibility and affordability, offering a gateway to entertainment without significant financial commitment.

The UK has a unified, elaborate law system with a single regulatory body. Gambling has been legal in the country since 2005. One of the significant characteristics of the UK gambling laws is that players are not taxed on their wins. 

This means British users, except for professional players, can keep the entirety of their betting profits, unlike gamblers from the USA, who can get taxed anywhere between 1% and 24% depending on a particular state.

The logic behind the non-taxation policy comes from the fact that there is no income generated. However, this doesn’t necessarily mean that the UK government does not make any profit. For example, no minimum deposit casinos and betting sites don't get directly taxed, while remote gambling providers should pay a 15% fee, which makes for massive gaming revenue.

Regulatory Framework 

The country's main regulator is the UK Gambling Commission (UKGC). It controls all forms of gambling, including Internet gaming, lotteries, casino games, sports betting, etc. The Gambling Commission is also responsible for issuing licenses to operators and bookies who meet the requirements in the Gambling Act 2005.  

Market Dynamics: Size, Growth, and Statistics

Now, it's time to examine some essential stats regarding the market size and total revenue in the country. Let's break down the findings from Statista. In 2022, the overall UK gross gambling yield exceeded the threshold of 14.06 billion British pounds. The most popular gambling activity among British people was the lottery draw. Sports betting came in second. 

As for the gambler percentage in the country, the number of active online gaming accounts at the UKGC-licensed platforms between 2021 and 2022 was nearly 32 million. The value of funds held in remote gaming accounts was about 910.5 million British pounds.

Player Protection and Responsible Gambling Measures

The UK places great importance on player Protection and responsible gambling practices. Most casinos and bookies in the country accept only players who are at least 18 years old, helping to prevent underage gambling. Recently, as one of the player protection measures, the UKGC introduced new rules to tackle irresponsible practices within VIP programs for high-spending gamblers.

When it comes to responsible gaming, the UK has a special self-exclusion program called GamStop, which works under the UKGC's supervision. Its main essence is to help players with excessive gambling signs and allow them to take a break for healing. After you join this program, you will lose access to all online bookies and casinos licensed in the UK for a specific period of time.

The Present State of Sports Betting and Gambling in the USA

In the US, gaming laws differ greatly depending on the regulations of a particular region and state. This means, the USA has a decentralized gambling system and doesn't have a single regulatory body for the entire country. 

Some of its states have stricter restrictions for casino operators and gamblers, while others allow gambling activities without limitations. For example, Utah and Hawaii are the two states that completely outlaw any form of gambling. On the other hand, Nevada is open to almost all types of casino and betting activities and has almost zero restrictions.

Regulatory Bodies 

As we have already mentioned, each state in the USA can independently decide which casino activities to allow or ban. However, some federal laws and bills must be followed by all states without exception. One such law is the UIGEA 2006 (The Unlawful Internet Gambling Enforcement Act). 

It is specifically designed for the online gambling sector and prohibits operators “from knowingly accepting payments that have a relation with the participation of another person in a bet or wager that involves the use of the Internet”. 

Market Size, Revenue and Statistics 

In 2022, the USA had an impressive gross gaming revenue of 60.42 billion dollars, which is quite a big figure. The share of sports betting from this revenue is 4.33 billion dollars. 

Another important thing to pay attention to is the number of people participating in casino and betting activities. Recent research shows that only in 2021, almost 10% of US adults took part in either in-person or Internet gambling at least once a week. And the majority of players are aged between 50 and 60, which shows that most of them are older adults.

Responsible Gambling Initiatives and Player Protection

Similar to the UK, the USA also has solid player protection policies in place. Across the USA, the minimum age for gambling is 18. Apart from this, the USA promotes responsible gambling among people. Some practices that are widely spread across all states are self-inclusion tools, mechanisms for time and deposit limits, free problem gambling support, etc.

Final Thoughts 

So, the key difference between the gambling regulations of the USA and the UK is the governing body itself. While the UK has one single authority regulating the whole gambling sector of the country, the USA lets each of its states craft its own laws and regulations.