a: opeRatoR licence fee Remote operating licence


licence


Gross gambling yield


Application fee


Annual fee


Remote betting ............................F .............................................<£0.5m.............................£2,933 ...............................£3,188 (virtual events) ............................G.............................................£0.5m - £5m.......................£7,169 ...............................£9,563 ...................................................H.............................................£5m - £25m........................£11,274..............................£13,529


Remote bingo .............................I ..............................................£25m - £100m ....................£16,551..............................£38,128 ...................................................J..............................................£100m - £250m...................£26,641..............................£74,012


Remote casino .............................K .............................................£250m - £500m...................£37,591..............................£117,746 ...................................................L .............................................>£500m............................£63,671..............................£155,425


Betting (real events).....................F .............................................< £5.5m............................£3,259 ...............................£13,529 ...................................................G.............................................£5.5m - £110m....................£7,169 ...............................£38,128 ...................................................H.............................................£110m - £220m...................£16,274..............................£74,012 ...................................................I ..............................................£220 - £550m .....................£19,551..............................£117,746 ...................................................J..............................................> £550m...........................£28,641..............................£155,425 ANNUAL GROSS SALES


Remote Gambling Software ..........F .............................................< £550,000........................£6,346 ...............................£6,765 ...................................................G.............................................£550,000 - £6.6m................£13,018..............................£19,063 ...................................................H.............................................> £6.6m ...........................£16,274..............................£37,006


Remote Gaming Machine ............F .............................................< £550,000 .......................£977 ..................................£6,765 Technical (full).............................G.............................................£550,000 - £6.6m................£1,627 ...............................£19,063 ...................................................H.............................................> £6.6m............................£16,274..............................£37,006


Remote Gaming Machine ............F .............................................< £550,000........................£977 ..................................£6,765 Technical (supplier) .....................G ............................................£550,000 - £6.6m................£1,627 ...............................£19,063 ...................................................H.............................................> £6.6m............................£4,882 ...............................£37,006


Remote Gaming Machine ............F .............................................< £550,000........................£977 ..................................£6,765 Technical (software).....................G.............................................£550,000 - £6.6m................£4,882 ...............................£19,063 ...................................................H.............................................> £6.6m............................£16,274..............................£37,006


when you submit your operating licence application. The fees vary depending on the type of remote licence and yield. An Operating Licence Annual Fee is also required 30 days after the licence is issued whilst a Personal Management Licence Fee, payable for each application if a personal licence is required, which is £370. This is refreshed every five years.


Application processes usually take between eight and 12 weeks.


technical standaRds The UK Gambling Commission has an interesting approach to structuring its technical standards. The Remote Gambling and Software Technical Standards, August 2009, starts by spelling out a number of ‘aims’. These are high-level objectives, akin to mission statements, such as: “To ensure that the gambling system implements the operator’s rules, game rules and betting rules as they are described to the customer.”


Each ‘aim’ is broken down into any number of specific ‘requirements’, each intended to provide specific compliance parameters relating to the original aim. Finally, each requirement is further fleshed out with ‘implementation guidance’, to provide operators with specific direction on potential approaches to implement for complying with the requirements. This hierarchical structure


helps operators to understand not only what they need to do to achieve compliance, but why compliance is important in each case. As those in the business of compliance know, understanding the objective of a requirement is a key factor in determining how to interpret the requirement.


The UK Gambling Commission goes on to explain in the Testing Strategy for Compliance with Remote Gambling and Software Technical Standards, August 2009, that the technical standards are classified according to risk, which in turn dictates the extent of testing and certification required to verify compliance.


The classification begins with ‘visibility’: low, moderate or high. That is, how easy it is to see whether a system or licencee is compliant. For


most Remote GamBlinG


availaBle to the BRitish is


pRovided By


opeRatoRs Based outside of BRitain.


example, gambling information displayed directly on the operator’s home page is highly visible, while information buried in source code is virtually invisible to all but the highly- trained Engineer.


Next, the ‘impact’ must be classified: I, II or III. That is: the potential impact to the player in the event of a non-compliance. Naturally, issues causing the player to be treated unfairly, or causing financial damage or security exposures, are generally classified at the top of the impact scale.


The visibility and impact classifications are fed into a matrix, which in turn dictates the ‘compliance assurance category’, or ‘CAT’: 1, 2 or 3. CAT-3 requirements require the strongest degree of assurance, namely testing and certification by an approved third-party. CAT-2 requirements require the operator to present evidence of compliance, but not necessarily stemming from a third-party’s testing results. CAT-1 requirements are approached lightly, with compliance assessed by observation by the UK Gambling Commission.


The CAT-3 requirements focus on high-risk areas such as Random Number Generators (RNGs), game fairness, and Information Systems Security (ISS). It is for this reason that third-party test houses in UK are often requested to test and certify only these elements.


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united kinGdom


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