The development of digital identity technology represents one of the most significant evolutions in age verification since the enactment of the Licensing Act 2003. As government policy increasingly embraces digital credentials across public services and regulated sectors, the hospitality industry now finds itself at a crossroad of technological innovation and statutory licensing compliance. While the proposed recognition of certified digital proof of age has the potential to modernise alcohol retailing and improve customer experience, its implementation raises legal and operational considerations for premises licence holders, designated premises supervisors, licensing authorities and enforcement agencies.

The Licensing Act 2003 remains fundamentally concerned with promoting the four licensing objectives, one of which is the protection of children from harm. The prevention of underage access to alcohol has become one of the principal regulatory priorities within the licensing regime. Although the Act itself does not prescribe the mechanics of age verification, this responsibility is addressed through the mandatory licensing conditions, together with bespoke conditions attached to individual premises licences. These provisions establish the framework through which operators must demonstrate due diligence in preventing unlawful sales.

Historically, acceptable proof of age has centred upon physical identification documents which include a photograph, date of birth and recognised security features – mainly passports, photocard driving licences and PASS-accredited proof of age cards. These documents have become embedded within operational procedures, staff training programmes, enforcement practices and licensing policy over the past two decades. Industry initiatives such as Challenge 21 and Challenge 25 have evolved beyond statutory requirements to become recognised standards of responsible alcohol retailing and both have been extensively adopted through local licensing policies and licence conditions.

The Introduction of Digital ID

Introducing government certified digital identity systems challenges many of the practices upon which existing age verification procedures have been built. Rather than requiring customers to present physical documents, digital identification will show whether individuals are of statutory age for purchasing alcohol through secured digital verification systems. These systems are designed to disclose only information necessary to complete the transaction, thereby applying the principle of data minimisation and reducing unnecessary disclosure of personal information such as residential addresses or document reference numbers.

Traditional identification relies upon visual inspection by staff, requiring employees to assess both the authenticity of the document and the similarity between the photograph and the individual presenting it. This process does introduces an element of judgement and creates opportunities for sophisticated counterfeit documents to evade detection. Certified digital identity systems instead transfer much of the authentication process from individual employees to a secure technological infrastructure, replacing many of the visual indicators upon which staff have previously relied upon.

Regulatory Implications for Licensed Premises

However, the introduction of digital identity creates an immediate conflict between amended national legislation and the thousands of premises licences currently operating under bespoke age verification conditions drafted long before digital identification was a consideration.

While mandatory licensing conditions establish the statutory minimum applicable to all licensed premises, many premises licences contain conditions requiring operation of Challenge 25, specifying acceptable forms of identification or expressly referring to passports, photocard driving licences and PASS-accredited cards.

Where these conditions exist, operators cannot assume that amendments to the mandatory conditions automatically supersede or displace locally imposed licence conditions. Unless those conditions are drafted sufficiently broad enough to incorporate future forms of certified identification, premises licence holders may remain legally bound by the more restrictive obligations than those imposed nationally. As a result of this, it may be that operators will be required to apply for a variation to their premises licences in order to align local conditions with the revised mandatory framework. Failure to undertake such changes could create circumstances in which operators inadvertently breach their own premises licence despite complying with the revised mandatory conditions.

This issue illustrates the increasingly complex relationship between nationally prescribed mandatory conditions and locally determined licensing controls. Whilst Parliament may establish minimum standards applicable across England and Wales, licensing authorities continue to exercise significant discretion in determining what additional safeguards are appropriate for individual premises. Consequently, implementation of digital identity is unlikely to be uniform across the hospitality sector until existing premises licences, licensing policies and enforcement practices have evolved to reflect the new regulatory environment.

Operational Compliance and Staff Competency

The introduction of digital identity will also require a reassessment of staff training and compliance procedures. Existing training programmes have concentrated upon recognising genuine physical documents, identifying counterfeit security features, applying Challenge 25 consistently and recording refusals. Digital verification introduces a different competency framework. Employees must understand which Digital Verification Services satisfy government certification requirements, how digital credentials are presented and validated, what contingency procedures should be followed in the event of technological failure and how digital verification interacts with existing licence conditions and internal operating policies. Training records, assessments and documented procedures are likely to have even greater significance during licensing inspections and criminal investigations relating to underage sales.

Enforcement and Licensing Practice

Enforcement authorities will similarly encounter new challenges. Licensing officers, police officers and trading standards practitioners have also assessed age verification procedures through direct observation of physical identification practices, staff interviews and documentary records. Future compliance inspections are likely to focus increasingly upon verification technologies, staff familiarity with certified digital identity providers, documented operating procedures and evidence demonstrating that digital verification systems satisfy both the mandatory licensing conditions and any additional requirements contained within the premises licence. Questions may also arise regarding system resilience, contingency arrangements during technological outages and the evidential status of digital verification records in criminal proceedings.

The acceptance of digital proof of age should not be interpreted as diminishing the continuing relevance of Challenge 25 or similar age assessment policies. Digital identity alters the method by which age is evidenced rather than the circumstances in which evidence should be requested. Staff must continue to exercise judgement when assessing the apparent age of customers. The obligation upon premises licence holders to take all reasonable steps to prevent underage sales remains unchanged.

Looking Ahead

The broader significance of digital identity extends beyond operational convenience. For the hospitality industry, this transition offers opportunities to strengthen fraud prevention, improve customer privacy and modernise compliance systems. However, it also illustrates the importance of ensuring that legislative reform is matched by amendments to premises licence conditions, licensing authority policies and operational procedures.

Premises licence holders should undertake comprehensive reviews of existing licence conditions, operating procedures, staff training materials and age verification policies before implementing certified digital identity systems.

Licensing authorities will similarly need to consider whether standard model conditions and licensing policies require revision to reflect the new statutory framework.

Until this alignment occurs, the hospitality industry will continue to operate within a dual regulatory environment in which national legislation embraces digital innovation whilst many individual premises licences remain rooted in assumptions formed during an era when physical identification was the only legally recognised means of proving age.

For further information on this subject please contact Heidi Lawrance (Heidi@woodswhur.co.uk) or your usual Woods Whur contact

The Financial Risk Assessments

First up, the FRAs…. Coming in with a good level of controversy, set to be implemented using a staged approach over the coming months. These are not new, and have been piloted over the last couple of years, but the implementation is not being well received across the industry.

The staged implementation is as follows:

The first stage of implementation will see Financial Risk Assessments carried out by the largest operators, where there is high spend of multiple thousands of pounds over a 24-hour period. For most, this means £5,000 net deposit in a rolling 24-hour period, which is a very unusually high spend pattern that less than 0.5 percent of customers exceed.

Once fully implemented in due course, Financial Risk Assessments will be applied to customers aged 25 years or older with net deposits exceeding £1,000 in a rolling 24 hour period or £3,000 over a rolling 90-day period; for those under 25 these thresholds will be reduced to £750 in a rolling 24 hours or £2,000 in a rolling 90 days.

The FRAs themselves will be conducted by credit reference agencies and should have no affect on credit scores. The vast majority of customers should never receive an FRA… and for the vast majority of those who do, it should be frictionless. Both customers and operators appear to be nervous of this, for good reason.

There are also a number of concerns about what action operators can and should take as a result of the information obtained in an FRA. The Commission have stated that no enforcement action will be taken against operators who fail to act on an FRA result during the early stages of the implementation, and that the FRAs back operators to take appropriate and proportionate action, considering everything they know about the customer. However most operators will be taking this with a pinch of salt – all other LCCP requirements remain in place and a negative FRA result is unlikely to be the sole safer gambling trigger on that particular customer. Appropriate action should be taken and documented as usual.

There are no real implementation dates yet, but operators should begin assessing where FRAs will sit within their customer interaction framework and their existing triggers. The FRAs should be a complimentary tool; not a replacement. Begin to consider what the triggers and the consequences will be and how they can be mapped. This must all be carefully documented and evidenced based.

Ensure you are engaging with the Commission during the implementation phasing process as well – it is supposed to be a collaborative process and the actions involved should be proportionate- the industry should have their say on what this would look like.

Gambling Survey for Great Britain – Stability is the key takeaway

Released on16 July 2026, the third GSGB is now being used to spot patterns and trends within the population and our gambling habits. There’s a big pool of participants now, and three years of data to review, so this is starting to become useful information – although if you want the raw data you’ll be waiting until the end of 2026 to receive this. As a note on patterns as well, caution has been warned regarding anomalies and odd variants, and the change in baselines has resulted in some data sets being incomparable… but for now, the headlines:

• 47% of adults in GB gambled within the last 4 weeks, however when you exclude lottery draw only players this drops to 27%
• In 2023, 48% had gambled within the last 4 weeks
• 38% of adults in GB gambled online within the last 4 weeks, again excluding lottery draw only players reduced this to 16%
• 28% of adults in GB gambled in person within the last 4 weeks, excluding lottery draw only players this drops to 17%
• Lotteries remain the most popular gambling activity
• Betting is most popular amongst males and those aged 18-34
• Bingo is most popular amongst females and the youngest and oldest age groups
• Casino games most popular amongst males and those aged 18-24
• 42% of those who gambled feel positively about their last gambling experience, 36% gave it a neutral score and 22% rated it negatively. The positive scores increased when removing lottery only players
• Within the survey participants, of those who had gambled within the last 12 months 2.7% had experienced one or more severe consequences due to their gambling
• 77% had a Problem Gambling Severity Index score of 0 in 2025, compared to 76% in 2023.
• Increase of men over 55 accessing gambling other than lotteries… decrease of women over 55 who are accessing problem gambling help for someone they know who are accessing gambling

Overall this is surely a helpful exercise, although of course any statistics can be twisted to form a certain narrative. The self-administered approach helps to eliminate embarrassment or shame… but the lack of any guidance or an interview leaves room for error – and we’ve had many discussions around customer awareness (or lack of) surrounding licensed versus illegal sites over the last few months.

And finally the survey may have more appeal to gamblers than non-gamblers (being labelled a gambling survey!) due to the topic saliency leading to a risk that results over state gambling participation. It is always interesting for me to note the consistent removal of lotteries activity from figures as well… I am sure we all know why that is.

Coming up –

• Future analysis will be conducted into trends around product and frequency, and gambling amongst ethnic minorities
• Illegal market questions that could be implemented moving forward
• 17 September 2026 – findings from consumer trust from GSGB released
• October 2026 – GSGB topical report on gambling behaviour amongst ethnic minorities released
• October 2026 – Findings on illegal gambling published
• December 2026 – 2025 GSGB data to be published

Ongoing Consultations

Two consultations are currently open, firstly a Gambling Commission ‘Call for industry proposals to address the burdens associated with gambling regulation’ (note – technically not actually a consultation….). This is open until 25 September 2026 and all industry stakeholders are being asked to come forward with any proposals they have to help alleviate regulatory burdens – without any negative effects on the licensing objectives.

It has become apparent from various Commission conversations on this topic that this is likely to be narrow. Usage as a vehicle to open other questions (including for example the recent fee increases or statutory levy controversy) are unlikely to be acceptable. The full scope and exceptions are set out on the Commission’s website, but this very much feels more like an amnesty on outdated requirements rather than anything pioneering… or which tackles administrative burdens implemented by the Commission (unless resource time permits…).

And secondly, a DCMS Consultation on banning unlicensed gambling sponsorship. The potential closure of a fascinating loophole which allows unlicensed operators to advertise in the UK because technically they are not actually offering services to people in the UK… the use of VPNs, for example, rendering this a fairly pointless defence. Some interesting points to note here being that it would cover all sponsorship arrangements, not just sport, it will be a criminal offence to advertise non-GB licensed brands in the UK (for any club, league, event, venue, individual or related assets), it will affect any events taking place in the UK (be wary of travelling teams…) and it is likely to involve secondary legislation.

This consultation closes on 9 September 2026, with a preferred ban implementation date of August 2027 to ward of sponsorship deals for the 2027/2028 season.

Are we going to see another boom in white labels? Time will tell.

The Fee increases

Following the DCMS consultation on Gambling Commission fees, a 25% increase has been decided.  Society lotteries and excluded, and fees for General betting (limited) operating licence will be adjusted to a market share-based approach based on gross gambling yield (GGY) rather than the number of days of operation.

Details on exact fees for each type of operator is now available on the Commission’s website for each operating licence. Fees for personal licences, variations and changes of corporate control will all increase by 25% as well.

These changes are coming in from 01 October 2026.

For any more information on any of these topics please contact Amanda Usher (amanda@woodswhur.co.uk) or your usual Woods Whur contact.

On 29 April 2026, the Tobacco and Vapes Act received Royal Assent, marking a significant step forward in protecting people in the UK from the dangers of tobacco. Smoking remains one of the country’s leading preventable causes of death and this new legislation finally takes decisive action in making it now illegal to sell tobacco to anyone born on or after 1 January 2009. In addition, the Act bans advertising and sponsorship of tobacco, vape, and nicotine products, while also strengthening smoke-free protections in workplaces and other public spaces.

A new licensing system

A notable component of the Tobacco and Vapes Act 2026 was the creation of the retail licensing scheme for tobacco products, herbal smoking products, cigarette papers, vaping products and nicotine products, collectively defined in the Act as “relevant products.” Under this scheme, retailers who sell these products will require the correct licence to do so. Selling relevant products without the correct licence constitutes an offence and may result in criminal fines, fixed penalty notices and civil penalties. Section 16 introduces the scheme which stipulates that individuals need a personal licence to sell, expose for sale, or possess tobacco products for sale. Separately, premises are required to have a premises licence in order to store, expose, or supply these products to retail customers. Breach of either requirement is an offence under Section 17.

What is still to come?

Section 16(4) places a duty on the Secretary of State to make regulations setting out how such personal and premises licences will be granted and Schedule 1 sets the boundaries of what those regulations may contain. Licensing authorities may be given powers to cap or restrict licences in a given area, require premises inspections, charge a fee within a set ceiling, attach conditions and vary, suspend or revoke licences. Courts also may suspend or revoke a licence following a conviction under section 17.

Where we stand now

Ultimately, the effect of these provisions is to move tobacco and vape retail into a controlled system, closer in structure to alcohol licensing than to the largely unregulated environment tobacco has dangerously occupied until now.

Operators should expect to need both a personal and a premises licence, with applications subject to fees, conditions and potential inspection and non-compliance carrying threats of criminal and civil consequences. The practical realities of the regime remains uncertain until the regulations under section 16(4) are drafted following consultations.

On 14 July 2026, the Home Office published its Guidance to support the implementation of Martyn’s Law.  ‘The Terrorism (Protection of Premises) Act 2025: Statutory Guidance’ enables those responsible for premises and events to determine whether they fall within the scope of the legislation (known as ‘Martyn’s Law’) and how to comply with legal duties. The Guidance can be found here: https://www.gov.uk/government/publications/the-terrorism-protection-of-premises-act-2025/terrorism-protection-of-premises-act-2025-statutory-guidance

The Guidance sets out clear steps for businesses. This includes smaller premises like shops and restaurants with 200-799 people, to ensure evacuation routes are in place, staff know how to swiftly implement a lockdown in their building, and staff know how to quickly communicate with their customers if an attack were to occur.

Larger premises and events, such as concerts and sports stadiums, where 800 or more people will be present, will be required to take further steps to reduce their vulnerability to acts of terrorism – such as installing CCTV, implementing bag search policies, or conducting vehicle checks where appropriate.

The guidance sets out what information must be provided, when notifications must be made, and the process for submitting details to the SIA.

The Act will come into effect after an implementation period of at least 24 months from Royal Assent, giving organisations time to understand their new obligations and prepare.

It is important for those operating larger venues and events to look into the detail of this Guidance and ensure that they have taken the necessary steps to ensure compliance.  Should you have any questions on this, please email Chris@woodswhur.co.uk, or your normal Woods Whur contact.

You will all be aware, the Football World Cup 2026 started yesterday in Mexico at the Estadio Azteca Stadium. It is an exciting time for all, especially for those in the licensed trade!

The Government has extended hours due to the time differences across the four different time zones. The extensions only apply for premises in England and Wales.  For Scotland, it is for individual Licensing Boards to determine.

When a home nation (England or Scotland) is playing, there will be a national extension to licensing hours:

• from 11:00pm to 1:00am for kick-offs from 5:00pm up to 9:00pm
• from 11:00pm to 2:00am for kick-offs after 9:00pm up to 10:00pm

but only for the following matches:

• round of 32
• round of 16
• quarter-finals
• semi-finals
• bronze medal match
• final

Importantly, this national extension will allow licensed premises in England and Wales that are already licensed to 11:00pm, and subject to their existing licence conditions, to remain open for the sale and supply of alcohol for consumption on the premises and provision of late-night refreshment.

The BBPA have produce a handy guidance note for those in the trade, please see link https://admin.beerandpub.com/media/elcluv1v/world-cup-2026-guidance.pdf

It is not too late for TENs (if required)

Should they be required, hopefully they will already be in place, but you can apply for TENs to extend your trading hours.

It is too late to apply for the first England game, however, you could still apply for the following key matches:

• 1 X LATE TEN for 23 June and 27 June 2026 (England Games)
• 1 X TEN for Quarter and Semi Finals on 11/12 July and 14/15 July 2026
• 1 X TEN for the Final on 19 July 2026

Or variations of this.  Please see Heidi’s article on TENs for further information on these notices.

Should you have any questions, please do contact Chris on chris@woodswhur.co.uk or your normal Woods Whur contact.

Hopefully, if required, you will have your temporary event notices now in place…

Temporary Event Notices (TENs) are an important feature of the licensing regime under the Licensing Act 2003. They provide a flexible and relatively straightforward process for individuals and premises to carry out licensable activities on a temporary basis without the need to obtain a full premises licence.

The TEN system was designed as a light-touch process to enable small-scale or one off events to take place while still promoting the four licensing objectives:

• The prevention of crime and disorder
• Public safety
• The prevention of public nuisance
• The protection of children from harm

TENs can be used for all a number of different events such as local community events, charity fundraisers, weddings, private parties, sporting celebrations, food festivals and temporary bars.

What is a Temporary Event Notice?

A Temporary Event Notice is a notification given to a local licensing authority by an individual who wishes to carry out licensable activities for a limited period.

Licensable activities include:

• The sale of alcohol by retail
• The supply of alcohol by or on behalf of a club
• The provision of regulated entertainment, such as live music, recorded music or dancing
• The provision of late-night refreshment between 11pm and 5am

A TEN may be used by a premises that does not have the benefit of a premises licence or where an event falls outside the scope of an existing premises licence.

A TEN can only be used where:

• No more than 499 people are present at any one time, including staff and performers.
• The event lasts for no more than 168 hours (seven consecutive days).

If either of these limits are exceeded, a premises licence or other authorisation may be required instead.

Who can apply?

Any individual aged 18 years or over may submit a Temporary Event Notice.

The applicant, known as the “premises user”, does not need to hold a personal licence. A non-personal licence holder may submit up to five TENs per year, however, personal licence holders are permitted to apply for up to fifty TENs each calendar year.

The Process

There are two types of Temporary Event Notice, a standard TEN which must be submitted at least ten clear working days before the event. This excludes the day the application is received and the day of the event itself and a late TEN, which may be submitted between five and nine clear working days before the event.

While Late TENs provide flexibility for organisers, they do carry greater risk. If either the local Police Licensing Team or Environmental Health Authority object to a Late TEN, the notice automatically fails and the event cannot proceed under that notice.

Once a TEN has been submitted, the Police and Environmental Health Authority have an opportunity to review the application. Objections can only be made where the responsible authority believes the event may undermine one or more of the licensing objectives.

Where an objection is received for a standard TEN, the Licensing Authority may hold a hearing to determine whether the event can go ahead, require conditions to be added to the notice or refuse the TEN.

Unlike a premises licence application, a TEN is not “granted” by the licensing authority. Instead, it is deemed accepted unless an objection is made.

Practical Uses of Temporary Event Notices

TENs are widely used to facilitate a variety of temporary activities.

Examples include:

• A village hall hosting a fundraising beer festival.
• A community centre holding a wedding reception with alcohol sales.
• A licensed premises wishing to extend its hours for a special or sporting event.
• A food festival offering alcohol sales from temporary bars.
• A charity event providing live entertainment and refreshments.
• A seasonal event such as a Christmas market, summer festival or New Years Eve.

The flexibility of the TEN process allows organisers to respond quickly to opportunities while ensuring appropriate safeguards remain in place.

Benefits of a TEN

The Temporary Event Notice process offers several advantages:

• Reduces the administrative burden compared with a full premises licence application.
• Significantly lower application costs (£21).
• Greater flexibility for small businesses and community groups.
• The ability to test new events before committing to a permanent licence or change in an existing licence.

The system has become an essential tool for event organisers, particularly where events are infrequent or temporary in nature.

Temporary Event Notices play a vital role within the licensing framework. They provide a practical and proportionate means of authorising licensable activities while maintaining safeguards to protect the surrounding local area, businesses residents.

By balancing flexibility with regulation, the TEN regime enables a wide range of events to take place safely, with the necessary permissions. For event organisers, understanding the scope, limitations and requirements of a Temporary Event Notice is essential to ensuring successful and compliant events.

There is an array of regulatory responsibilities attaching to all gambling premises, whether a casino, betting shop, adult gaming centre, bingo hall or family entertainment centre. Local Authorities play an essential role in making sure there is compliance with these regulatory responsibilities, and many already have a robust inspection agenda.

Whilst each type of premises has slightly different requirements, and it should be immediately obviously what type of premises they are the moment you walk in, there are a number of elements true to all gambling establishments. The Gambling Commission have a toolkit and guide – including a handy form for each premises- which is fantastic place to start. But to go beyond a form, here are our top 5 things to look out for….

1. Signage

All gambling premises have to display a number of documents within their premises and checking that these are up is a great first step to an inspection.

The Premises Licence Summary should be clearly displayed, and you can immediately check whether the premises are complying with any licence conditions which have been attached to their licence.

Underage signage, including No Under 18s and any challenge 25 posters, should all be very clearly visible and should be acting as a deterrent by the main entrance.

Problem gambling signposting is vital in all premises, the right information should be available to customers in a discreet fashion. Problem Gambling Leaflets should be capable of being picked up and taken away, with information on how to seek help prominently available.

Depending on the type of establishment, the rules for each type of gambling on offer should also be readily available, along with any Terms and Conditions.

2. Staff Awareness

Speaking to members of staff is a really good way to get a feel for the overall professionalism and compliance of a venue. Do they seem confident in their role and their knowledge? Can they talk you through their policies and procedures?

Watching what staff do when a customer walks in is a great opportunity to see them in action; how they observe and interact with customers to make sure they are playing in a safe and responsible manner. You can also ask staff various questions to test their knowledge, ask to see different documents and make sure they know who to call or what to do if there is a problem.

A very important question to ask – when were the staff last trained? What were they trained on and did they find it useful? Staff training is one of the most valuable aspects of any gambling premises.

3. Key Documentation 

We’ve already covered the key documents which need to be displayed in the premises, but there are also a number of other documents which should be on hand within the venue that you can ask to see.

The Full Premises Licence, Summary and Plan should be on site, and should be the most up to date version. The plan should match the layout, and it is important to check that gambling is only taking place within the designated area. The Local Area Risk Assessment is probably the second most important document. This should set out the local risks and any mitigating factors deployed by the operator, the first thing you should check is when it was last updated! The LARA should take into account all local risks and evaluate them in relation to the premises. Have they missed any?

Various policies and procedures, including Customer Interaction, Anti-Money Laundering and Customer complaints, should all be readily available. Staff should all know where they are – and more importantly know which one to look in if they encounter any problems.

Record keeping is another vital part of gambling premises, from under 18s attempting access to customer interactions, these should be accurate and up to date. The records might be manual or electronic, but either way the staff should be able to show you where they are and how to complete them. There should also be a record of training logs in the premises, are all members of staff up to date on their training?

4. Licensing Objectives

The three licensing objectives should be a constant mantra for any gambling premises:

The protection of children and vulnerable persons should be achieved through staff training, clear policies and procedures, careful shop design and customer monitoring. Does the operator have robust underage gambling prevention measures in place? How have their last few age verification tests gone, any failures? Arey they effectively interacting with customers and are they able to identify and protect vulnerable customers? Is there a proper self-exclusion scheme in place?

The prevention of crime and disorder is borne out through policies and staff training. Do they have an AML Policy and risk assessment? Is there anything suspicious in the premises, do you know of any links to known crime or disorder in the area? Have they have any issues involving the police?

Keeping gambling fair and open – are the machines all properly maintained? Do they have the right number and category of machines? Is the customer complaints procedure available and easy to follow? Do they have correct ADR provisions? Do the machines display everything they should (category, RTP, problem gambling information etc)? Are there any reward schemes at play?

All operators should be able to answer these questions to your satisfaction, with the licensing objectives underpinning every aspect of the operation.

5. Collaboration and Transparency

And lastly, responsible operators will welcome a Local Authority Officer into their premises with open arms. They want you to come and see what a good job they are doing, they are proud of their premises and proud of their staff.

They are also normally very aware that it is their specialty, but it might not be yours. Questions are welcome and they will gladly walk you through any areas of their operation which might be new to you. It should be a positive and collaborative experience, and if there are any areas you think they need to improve (or where they are not compliant!) the operator should be following up to make sure those changes and quickly and efficiently implemented.

Any operators who resist inspections, are difficult to work with or refuse to cooperate are likely to be treated with suspicion. Keeping a good, open relationship between local authorities and operators is a vital part of the gambling industry and it is very much a two way street.

This is by no means an exhaustive list, and for further information or guidance please do contact amanda@woodswhur.co.uk or your usual Woods Whur contact.

Lotteries tend to fall into three categories:

1. Unregulated prize competitions or Free Draws
2. Local Authority Registered Small Society Lotteries
3. Gambling Commission Licensed Large Society Lotteries

We regularly handle all three types of lotteries, however for National Licensing Week we wanted to provide a reminder of what often feels like the least common type; the Local Authority Registered lotteries.

As a quick recap, a lottery must have payment to enter and prizes which are awarded solely by chance. Take away any of these elements (for example payment to enter) and it is no longer  a lottery, and is likely to be a free draw or prize competition. A lottery which exceeds £250,000 in proceeds in a year, or £20,000 of tickets in a single draw, requires a Gambling Commission operating licence. Following the same path as all other forms of gambling, these operating licences can be expensive, hard to obtain and difficult to maintain (although of course still doable!).

A Local Authority Registered lottery, or small society lottery, provides a neat halfway house. Any lotteries which are below the £250,000 threshold simply require registration. A small society lottery must still be promoted by a non-commercial society for charitable purposes- or any other purpose not for private gain – and a minimum of 20% of proceeds must go to this good cause (with up to 80% able to be claimed for prizes and expenses).

The registration itself must be with the society’s Local Authority, and is normally a simple form with a fee of £40. An application might be refused if the society has previously held a GC licence which was refused or revoked, and any individuals associated with the running of the lottery must declare any relevant convictions. The lottery must be registered for its lifespan and there is normally an annual fee of £20.

There is a common misconception that this is where the role of the Local Authority ends. However, lottery returns must be submitted to the authority within three months of the date of the lottery draw, be signed by two members of the society, and will usually include:

• Dates of tickets sales and draws
  • Arrangement for prizes (rollovers, donations)
  • Proceeds
    • Amounts applied to expenses (promoters etc)
    • Amounts applied to the good cause
    • Amount paid for prizes
  • Any promoters (or change in promoter)

Furthermore, the society must retain written records of all draws, including unsold tickets, must be retained and can be inspected. The authority will inspect the returns, may request other documents to inspect too, and can revoke the licence if they see fit. It is important for local authorities to understand and review returns as they are submitted (and to make sure they were submitted in time).

One or more individuals in the society must ensure they are responsible for the compliance of the lottery, they must be open and honest with the local authority, and will be the ones named on the lottery tickets and signing the returns. They are also the ones who should be making sure that clear policies and procedures are in place to protect the lottery, the society and its customers – from both potential money laundering and the harms of gambling. Any training should be conducted by this individual – and they are the ones who would be called to answer questions from the authority.

A small society lottery, whilst not quite as hotly regulated as a GC operating licence, still has a number of rules it must follow…

The Tickets

• The ticket price must be the same for all tickets and all tickets must be paid for before entry to the draw is allowed. Caution and consideration should be given to payment methods
• Tickets must only be sold to individuals over 16
• Tickets must show the name of the society, the price, the organiser and the draw date
• If it is not a fixed date for the draw then the ticket must have information about how the date will be decided
• Tickets can be sold door to door, online, over the telephone or face to face but they cannot be sold in the street
• Draws must take place when advertised, and results should be communicated to players using the method by which they entered, or the method which they choose

The Prizes

• No single prize may be worth more than £25,000, even if it is donated
• Prizes can be rolled over another lottery run by your society, but that prize cannot be worth more than £25,000

Overall small society lotteries can be a great way to get started, but charities must be aware of the regulatory responsibilities that come with it.

Lots of small societies use External Lottery Managers to help run their lotteries, or feel free to reach out to amanda@woodswhur.co.uk or your usual Woods Whur contact for any help setting up or running a lottery.

Sophia and I had the pleasure of attending the Ethical Gambling Forum this year, held at Flutter’s offices in Leeds and hosted by the organisational powerhouses that are Jo Abergal and Adrian Sladdin. Not to mention the hospitality and efficiency of Bridget and her team at Flutter.

Conferences can be strange places, and their purpose can be diluted at best – completely unknown at worst. The best way to describe the EGF is with reference to one of their panels ‘Conference Overload’. This panel did not land. Designed to evoke conversation about whether we should be travelling internationally to attend conferences, and whether they are worthwhile, the panel fell on deaf ears as all attendees shuffled their feet and decided they absolutely wanted to attend this conference. With clear objectives and carefully curated panels, everyone who I have spoken to following the conference have raved of its success – from operators to gambling harms treatment providers.

The buzzwords, because there are always buzzwords, were collaboration, seatbelts and balance.

Collaboration and balance will be well known to all in the industry; collaboration between all major stakeholders within the gaming ecosystem to strike a balance between commerciality and player protection. The overwhelming theme from the EGF was that the best operators are using player protection measures and safer gambling tools like a seatbelt. You never want to use it, but it’s always there just in case.

Sophia and I have picked out some elements of the conference which resonated with us and pieced together some useful information for operators, including the black market, AI, compliance as a commercial advantage and the public perception of gambling.

For any gambling queries, please contact amanda@woodswhur.co.uk, sophia@woodswhur.co.uk  or your usual Woods Whur contact.

 

I recently wrote an article for Eventus International on the importance of annual audits for operators (https://www.eventus-international.com/post/the-importance-of-an-annual-audit), and I was pleased to see a number of these themes echoed by those speaking at the Ethical Gaming Forum this year. Compliance as a central part of gambling is only increasing in importance, and the EGF provided an opportunity for various stakeholders in the gaming ecosystem to come together and discuss how to reassess and reposition compliance, with a particular focus on responsible gambling and player protection.

The first of these proposals comes from the top; ethical corporate governance. This boils down to one simple mantra; do what is right by the customer.  An operator with a healthy relationship with its players is one which has proactive responsible gambling policies, balances policies with execution, and acknowledges the power and influence of certain individuals within the organisation. Audits, staff training and staff mentoring are all helpful ways of achieving ethical corporate governance. Audits can also help to flush out where problems lie; an organisation which is always fighting fires does not have chance to look and figure out where those fires are actually starting.  The biggest disasters hit companies which did not see it coming.

The second method mooted for championing compliance was to rethink who players really are – and who safer gambling tools should be aimed at.

The recognition and acknowledgment that there is a sliding scale of customers should be the starting point. Customers do not fit neatly into two boxes of ‘problem gambler’ and ‘responsible gambler’. This simple recognition has helped a number of operators to reframe their player protection measures and reposition them earlier in the customer journey to assist with harm minimisation by placing friction in the right places. For example some are now implementing an ‘opt out’ process; the guard rails are automatically in place on an account and a customer must actively remove them. Safer gambling tools should be aimed at all customers. In fact – some go as far as to say that safer gambling tools should NOT be aimed at problem gamblers at all – self-exclusion is there for problem gamblers.

A big objective for most operators present was to have every single customer on their platform utilising player protection measures or safer gambling tools, not just those potentially on the riskier end of the scale. A comment I found particularly interesting was a dislike of the phrase ‘ responsible gambling’, because it implies the existence of irresponsible gaming… And whilst that may exist, this leads to stigmatisation of gaming not considered responsible, and can result in a failure to seek assistance in the form of safer gambling tools.

Here is where the ski helmet (or seatbelt) analogy comes into play. Wearing a helmet for winter sports is now considered the norm. It is now strange and somewhat uncomfortable to see someone without a helmet. And yet not too long ago that was the reverse; but most would agree they would rather have it and not need it than need it and not have it!

These changes in the industry do not need to come from the regulator or the legislation, and it is encouraging to see such positive changes coming from the industry itself.

And finally, a reframing of compliance as a commercially beneficial aspect of operations. Compliance as a commercial element may seem either counter intuitive, or even potentially dangerous, to many operators, however it undoubtedly creates opportunity to leverage commercial advantages when utilised correctly. Better customer trust and loyalty, a reason not to stray into the black market, employee retention, brand image and awareness, and – of course- avoiding regulator intervention to name just a few. As a regulatory lawyer, my focus will always be on the latter, but it is important to mention the other benefits too, particularly with a view to ensuring compliance is always considered a cornerstone of the industry.

These benefits also lead me nicely into another theme (and therefore another article!) from the conference; the public perception of gambling.

Amanda Usher