UKGC Adds New AML Requirements for iGaming Operators

The UK Gambling Commission (UKGC) has introduced stricter anti-money laundering (AML) and counter-terrorism financing (CTF) rules for gambling operators as part of changes to its licensing requirements. Effective November 29, these measures are intended to bolster accountability and improve governance within the sector.

Key Licensing Changes

The updates, introduced through revisions to the Licence Conditions and Codes of Practice (LCCP), now mandate that certain senior roles within gambling organizations obtain personal management licenses (PMLs). This requirement applies to:

• CEOs or managing directors

• Individuals chairing boards of directors

• Other senior leadership positions with direct regulatory oversight

Focus on AML and CTF Responsibilities

A significant aspect of these changes is the enhanced focus on AML and CTF responsibilities.

• For casino operators, the designated compliance officer must hold a PML

• The nominated officer in charge of reporting suspicious financial activities must also obtain a PML

• Non-casino operators are also required to ensure compliance staff meet updated licensing standards

Statutory Tax Introduction

In addition to licensing updates, the industry is preparing for the introduction of a statutory tax on gambling operators starting in April 2025.

• This new tax will replace the current voluntary contributions system

• It is expected to raise approximately £100 million (US$127 million) annually

• Funds will be directed toward initiatives aimed at reducing gambling-related harm

The statutory tax has sparked mixed reactions. Public health advocates view it as a vital step in addressing the social impacts of gambling, while industry stakeholders have raised concerns about its timing and execution. Law firm Wiggin has emphasized the importance of evidence-based oversight, arguing that transparent processes and measurable outcomes are essential for success.

Conclusion

The UKGC’s latest reforms reflect a broader push to modernize the regulatory framework for gambling. By tightening leadership accountability, strengthening safeguards against financial crime, and introducing a statutory tax to address gambling-related harm, the regulator is signaling its determination to balance industry growth with social responsibility.