Enquiry as to whether my app will need a gambling license?

[DonGoldsmith]

Hi,


I am building a UK app which is essentially a derivatives market for football players.

In terms of how it would work is as follows:

i.e. users can invest in a player i.e. Cristiano Ronaldo who's price would be something like £2. And then due to supply and demand forces in the market, the price of this derivative (as users do not actually own Ronaldo) would increase/decrease based upon users perception of his performance.

My app would only determine the formula for the pricing of this football derivative and transfer money between those who buy the derivative and those who sell the derivative - I won't determine any odds like betting shops - merely being a marketplace to connect derivative buyers to derivative sellers.

Would I need a license? If so how much would an app-based license approximately cost at the launch of the app and subsequent years?

Please advise,
Regards,

[R0b]

That's a very specific question and one which probably warrants specialist legal advice, after all this is a consumer law forum. I have no knowledge on gambling laws but it would sound like it might require a licence and I suspect one would need to know a detailed explanation as to how the app works before determining whether a licence would be needed.

Have you spoken to the Gambling Commission to see if they can assist or point you in the direction as to how you might determine whether a licence is required? I even wonder if your description about derivatives might even fall within the Financial Conduct Authority's remit meaning you would have to be authorised by them, as opposed to the GC.

The link below is likely to be a useful starting point, otherwise you ought to see a specialist lawyer.

https://www.gamblingcommission.gov.u...usinesses.aspx

[Tuaret]

In most regions of the world, a gambling business without such a license is illegal.

[Matty B]

Hasn't there recently been some very bad press about what seems very similar https://www.bbc.co.uk/news/business-56401707

They were registered by the GC https://www.footballindex.co.uk

[Tuaret]

Having a license gives site operators the right to provide their services in various global gambling markets. In most regions of the world, a gambling business without such a license is illegal. For example, bingoon.se has a license, as in Sweden you need a license. In the UK, if you want to run a gambling service via remote communication (including online gambling), either from advertising to UK consumers or any part of your remote gaming equipment is based in the UK, you will need to get two types of license from the UKGC: a remote operating license and a personnel manager license.

[ansrewsaint]

I think you would not find any info on that on gov.uk. You should probably ask someone who already did similar app.

[dslippy]

You cannot sensibly write such an app without taking into account, as part off the design, the licensing system, within which it has to fit. If it is worth wrtiting, it is worth getting proper advice