UK gambling regulations are design to keep criminal activity out of the industry. With strict AML policies and complex licensing procedures, these regulations can impose substantial fines on businesses that don’t comply.
Despite the various lockdown rules and restrictions during the pandemic, the online gaming sector continues to grow in popularity. With new changes on the horizon, it remains to seen if they will have any impact.
License Conditions and Codes of Practice
Before a gambling company can begin operations, it must meet certain industry-specific license conditions and codes of practice. These requirements typically include submitting financial reports, bank statements, and credit card rating reports to prove that the company is financially capable of operating a gambling business. In addition, considerable experience in the gambling sector is requir from the company’s employees. Moreover, almost all gambling commissions require that at least one of the company directors must be a citizen of the country where the licence is issu.
The Gambling Commission also needs to satisfi that the operation will not financed by criminal proceeds. This is because they have a duty to pursue the licensing objectives and to protect players from harm. If they do not do this, they will be in breach of their statutory duty. Furthermore, they must be able to demonstrate that they have the resources and skills to operate an efficient and effective system of regulation.
Licensing
The licensing process of the Gambling Commission involves criminal and financial background investigations to ensure that only qualified persons operate gambling activities. The process can take up to 120-150 days. The Commission also requires that owners of gambling establishments display materials on responsible gaming and provide a toll-free telephone number for problem gamblers.
The Commission issues two types of licenses: personal licenses and premises licenses. The latter apply to non-remote businesses and allow operators to offer casino games. The fees vary depending on whether the business is located in England, Scotland, or Wales. Applicants must submit an application form, an operating plan, and a security deposit. The Commission also requires that the business disclose its financial situation. Once these documents are in order, the Commission will assign a Licensing Specialist to review the application. If the application is approved, a hearing will be held. Regulatory Panel members will vote, and the Chairman has a casting vote in the event of a tie.
Regulation
Licensed operators are required to create policies and procedures to prevent money laundering. They must also report suspicious transactions to the National Crime Agency. Failure to comply with these requirements can result in a fine from the Gambling Commission.
Moreover, the Commission has a primary statutory duty to advise the Secretary of State regarding gambling related harm. It should therefore have a clear idea about how the industry should develop and be able to respond to consumer choice without causing gambling related harm to vulnerable people.
You must apply to the Gambling Commission for a personal licence or a business operating licence if you run a gaming arcade, betting shop, bingo hall, casino or remote gambling site. There are also restrictions on the kinds of games that can played and on who can handle money in a gambling venue. You must also have a responsible gambling code and self-exclusion scheme in place. You must pay the relevant licence fees.
Enforcement
The Commission has a duty to advise the Secretary of State on gambling and its regulation. This includes monitoring developments in gambling worldwide, working closely with licensing authorities and other regulators, and engaging with a wide range of stakeholders including faith and community groups, those who experience gambling harm, and government departments.
In addition, the Commission publishes statutory guidance to licensees on gambling advertising and is expected to be the first in the world to introduce affordability checks on customer accounts. These are intend to ensure that customers only gamble with funds they can afford and to identify those at risk of harm at the earliest opportunity.
The Gambling Commission has also found that special measures are highly effective in encouraging licensees to make quick and substantial improvements and divestments (if necessary) in a tight timeframe to avoid section 116 licence review. During the process, a licensee is subject to a strict timetable and is monitored by the Commission.
