The Commission have been making concerted efforts in recent months to work with the industry, both with operators and industry lawyers, to work cooperatively and establish good practice protocols. It may not have felt like this to all operators, but the introduction of new policies, guidance and LCCP updates speak for themselves. The general direction of the Commission has very clearly been policy updates this year, however it has been made clear that this is slowing down – and enforcement will be ramping up.
Enforcement action
There has been a very marked increase in enforcement action recently, particularly with licence suspensions. Whilst not explicitly confirmed, the number of suspensions has shot up and the feeling at the Commission very much seems to be despair at what they call ‘repeat offenders’. If a fine has not proved fruitful in the first instance, it is now to be expected that a licence suspension is looming – and that PML reviews will also be considered.
On the back of the increased requirements for PML holders, PML reviews are also on the up. The Commission have confirmed that it remains unlikely that PML holders will be fined, however it remains a distinct possibility that PML holders may have their licence suspended or revoked.
The next sectors which can expect increased scrutiny (aside from simply smaller or independent operators…) are the motorway service AGCs and B2B operators. Motorway services have long been considered troublesome, with lack of staffing and customer interactions frequently cited – along with AML concerns. The B2B sector has not been looked at for some time now, but again the concerns are evident. B2B’s frequently work internationally, in grey and black markets alongside the UK. Any operators contracting with B2Bs should ensure their due diligence is up to date and expect to answer questions as to their relationship and whether they are satisfied it is appropriate as a licensed operator.
AGCs
The AGC sector has been heavily reviewed this year, with the catalyst being a combination of bad press, industry murmurings and a multi-operator self-exclusion scheme report. The latter revealed that a number of operators, despite stating that they had the scheme in place in their Compliance Questionnaire, were not actually part of any such scheme. Six licences were suspended immediately, many others investigated. The letter sent out at the start of the summer has been described as ‘warning shot’ to the AGC sector; failure to comply with the concerns set out will be considered aggravating factors in the future.
A similar concern that the Commission has, particularly amongst smaller operators, is a failure to properly engage with their own policies. If as an operator you have any policies that have not been reviewed and updated within the last year – dust them off and have a read. There will absolutely be revisions required after the last 12 months.
Local Authority Inspections
Another hot topic – from both the GC Industry lawyers meeting and the IOL National Training Conference – is the role of Local Authorities in the gaming industry. There is much talk about the potential to give Local Authorities greater power, but many are starting to point out that a major power already held is not being used to its full potential. With the gambling application fees that must be used for gambling matters, more and more authorities are being reminded of the need to conduct inspections of their premises. It is safe to say that anyone operating in the non-remote sphere can expect this in the not so distant future.
Black Markets
The Budget, alongside many, many other elements, allowed for £26m investment into the tackling of the gambling black market. It is not yet clear how these funds will be spent, but it is likely the focus will be on litigation and prosecution funding. The current aim, rightly or wrongly, is not to completely prevent the black market but instead to try and ensure that none can operate successfully or at scale.
The Crime and Policing Bill, currently at House of Lords committee level, is expected to bring in measures to help with IP disruption. This multi-level targeted approach is hoped to bring more success in damaging the black market- but at the moment these appear to be the only plans in the pipeline. The Commission will not be publishing any lists of black market sites, with a view that they could be seen to be ‘advertising’ them, despite this being the operational model in France (in recognition of the fact consumers can very easily find the black market sites with a simple google search – having confirmation that they are illegal and consequently lacking in customer fund protections can be useful).
Overall, it has been stressed (and not for the first time) that an awareness, willingness and ability to comply with the regulations is paramount to all operators. Where there is a live and present risk to consumers, the Commission will not hesitate to enforce an immediate suspension. What became very clear from the conversation surrounding AGCs was the need to get the basics right; check all LCCP requirements and review the policies and procedures in place. Now more than ever is the time to get your house in order, whether that is through an internal or external audit.
As a final note, keep an eye out for a GLA consultation next year… it sounds like we can expect it.
For any more information on any of the above topics, please email Amanda or your usual Woods Whur contact.