$/€ The Story of Gambling in Britain: From Early 20th Century to Today
Xenia Luch
31 May 2024
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Previously we talked about early history of gambling in Britain since the first state lottery up to Industrial Revolution. What was happened next?
The evolution of the gambling industry in Britain owes a lot to government influence. Initially advocating for tighter government control over gambling, the Labour Party began pushing for relaxed regulations, advocating for broader access to betting for the middle and lower classes. This shift paved the way for significant industry growth, culminating in the Betting and Lotteries Act of 1934.
Birth of Greyhound Racing
Back in the mid-1920s, sports betting in Britain was all about horse racing. The country had over a hundred racecourses of all sizes. Sure, people placed bets on cricket and football too, but there just wasn’t enough variety in sports.
So, when greyhound racing came onto the scene, it took off like wildfire. Organizers set up races where people could bet on dogs chasing mechanical lures around the track.
The establishment of greyhound racing in Britain is credited to American entrepreneur Charles Munn and Major Lyne Dixson. In 1926, they founded the Greyhound Racing Association (GRA) and built a track at the Belle Vue Stadium in Manchester, where the 1st legal race went down.
It was a hit, and by the end of 1926, they opened 2 more tracks in London.
| Year | Attendance |
| 1927 | 5.5 million |
| 1928 | 13.7 million |
| 1929 | 16 million |
With numbers like these, the GRA was on the up and up. By 1927, they had bought out the White City Stadium in London and opened another 18 racing tracks.
Legal Reforms — Betting and Lotteries Act of 1934
The British government’s laid-back stance on gambling had its pros and cons. Sure, it boosted the industry, but it also came with some downsides. See, with no real restrictions on bookies, they’d hire runners to take bets in bars and other public spots. Illegal bookies did the same thing. It was a recipe for crime.
Trying to clean up the mess, the British Parliament passed The Betting and Lotteries Act of 1934. This act laid down some strict rules for the gambling scene:
- Bets could only be placed at racecourses, stadiums, and betting shops.
- All lotteries, except small private ones, were banned and deemed illegal.
- Bookies could only take bets 104 days a year.
- Bettors had to show ID to prove they were of legal age.
But did these changes really do the trick? Well, it was a mixed bag. First, there was a long adjustment period, and then World War II hit. During the war, the government cut bookies some slack again. So, the 1934 Act was a pause, not a full stop, in Britain’s gambling saga.
In that same year, 1934, one of Britain’s biggest bookies, William Hill, was founded.
Impact of World War II on Gambling
When World War II kicked off on September 1, 1939, Britain was in it from the get-go. The first few years saw tight restrictions on transportation, hitting gambling venues hard. But interestingly, betting volumes stayed high.
With entertainment options limited, the British government saw gambling as a way to give folks a mental break.
After the war, greyhound racing’s popularity shot through the roof. Until a new gambling law came into play in 1960, stadiums across the country were pulling in over 25 million fans each year. The cash flow hit a high note in 1946. The GRA raked in £17.57 million in bets and ticket sales – that’s around £922 million today.
But alongside the comeback of legal sports betting, street gambling was booming too. Bookies still relied on their runners, and all sorts of table games were popping up in public spots. Parliament had enough of it: in 1960, they passed another law to clean up the streets.
Regulating Gambling — 1960 Betting and Gaming Act
The 1960 Betting and Gaming Act came into force on Jan 1, 1961. City magistrates were given the power to issue licenses, and over the next 5 years, they handed out about 16,000 of them.
The law kept the ban on third-party betting (via runners) but legalized a bunch of new gambling games. On one hand, this led to a boom of classic games like bridge, dice, and roulette. On the other hand, by the end of the 60s, annual attendance at greyhound races dropped from 25 million to 10 million people.
Casinos were allowed to operate under 2 conditions:
- They had to get a license from the Gaming Board of Great Britain.
- They had to operate as exclusive members-only clubs.
That’s when legendary joints like the Clermont Club popped up in London.
In 1968, the Gaming Act got some updates. The British government eased up on the licensing requirements and lifted some restrictions on games played in clubs.
The ban on large private lotteries remained in place. But the new law gave the green light to bingo halls. In 1994, a significant milestone was achieved with the establishment of the National Lottery. It includes several games like Lotto and Thunderball. And in 2004, the pan-European lottery EuroMillions was introduced.
Establishment of the UK Gambling Commission
In the early 2000s, online casinos started popping up everywhere. Since the old UK laws didn’t account for online gambling, new regulations were needed. Enter the Gambling Act of 2005, still in force today. Local authorities kept their licensing powers, but a new top dog for industry regulation was created — the Gambling Commission (UKGC).
The UKGC handles several key functions:
- Issuing licenses to both land-based and online gambling operators.
- Keeping an eye on the market and slapping fines on rule-breakers.
- Setting standards for the UK gambling industry.
- Protecting vulnerable people from gambling addiction.
To get a license, a company needs to be registered in the UK and have equipment located within its borders. Licenses are dished out separately for different services: land-based and online casinos, slots, table games, sports betting, lotteries, you name it. But getting the Commission’s nod is considered one of the most prestigious stamps of approval in the world.
