Is it legal for me to prototype simulated gambling software in England?
<p>I am a programmer in England, and am potentially interested in one day working to open a licensed online casino.</p>

<p>I have several ideas about products I would like to work on, but am a bit confused as to the reach of <a href="http://www.legislation.gov.uk/ukpga/2005/19/section/41" rel="nofollow noreferrer">s(41) of the Gambling Act 2005</a>. This section reads:</p>

<blockquote>
  <p>A person commits an offence if in the course of a business he
  manufactures, supplies, installs or adapts gambling software unless he
  acts in accordance with an operating licence.</p>
</blockquote>

<p>Meanwhile, "gambling software" is merely defined as:</p>

<blockquote>
  <p>computer software for use in connection with remote gambling.</p>
</blockquote>

<p>In the <a href="https://www.gamblingcommission.gov.uk/PDF/What-is-gambling-software.pdf#page=3" rel="nofollow noreferrer">Gambling Commission's guidance</a>, they say:</p>

<blockquote>
  <p>The activities of manufacturing and adapting are similar and
  relatively straight forward in that both activities involve developing
  gambling software to produce a finalised (or almost finalised) product
  [...]</p>
</blockquote>

<p>If I as an individual (not a business) were to prototype software ideas I have, one day seeking to use them in a licensed/published operation, would this be a violation of the Act? Such prototypes for idea purposes would not be set up to accept actual money.</p>

<p>In other words, would my intention to adapt the software in the future to work with real-cash (once I have the funds to get relevant licensing) prohibit me from manufacturing a simulated version of what I would like to produce?</p>

<h1>No, it does not appear to be legal.</h1>
<p>I cannot identify any exception based on a reading of the relevant legislation, nor can I find any applicable case law specific to Section 41.</p>
<p>Reviewing the Government's <a href="https://www.legislation.gov.uk/ukpga/2005/19/notes/division/5/3/7/1/6" rel="nofollow noreferrer">Explanatory Notes</a> on this Section, it is stated:</p>
<blockquote>
<p>The purpose of this offence is to ensure that people responsible for generating gambling software do so in a regulated environment, to ensure, in particular, fairness for players.</p>
</blockquote>
<p>therefore it is highly likely that manufacturing a prototype of the software would count as committing the offence.</p>

<p>I think the key phrase here is &quot;in the course of a business&quot;. So if you were to write the software in your spare time that would be legal, but as soon as you started acting as a business (e.g. by offering it for sale) you would be breaking the law.</p>
<p>This also implies that if you release your software as open source then that would be legal too.</p>

criminal-law united-kingdom software england-and-wales gambling