UK LEGAL COMMENT
“This may also be the moment for betting on
esports to really take off, with tournaments able to take place remotely and viewers able to watch via live streaming, even while self isolating ”
William Hill sign: Claudio Divizia/Adobe Stock
as customers may have lost their employment or have a reduced income. The mental strain of social isolation and health anxiety may also put some individuals at greater risk of addictive behaviours. A review of current CDD, EDD and customer monitoring procedures would be worthwhile, to ensure they reflect the fact that customers’ circumstances may have changed. Gambling Commission licensed online providers will also need to ensure they have the correct licences in place for any new products they plan to offer. Sportsbooks looking to move into virtual unicorn race betting need to be aware that virtual betting requires a separate licence type to betting on real events. A variation application can be submitted to add virtual betting and the costs of this are not excessive (the application fee to the Gambling Commission would be £660 for the lowest licence category or £1,613 for either of the next two). The Commission does not currently expect applications to be delayed as staff members continue to work remotely, however this is an application which would typically take around 6-8 weeks to be granted, so it’s not possible for a sportsbook operator to move immediately to other products. One of the general principles the Commission is to
apply in exercising its functions is “promoting economic growth”. This involves having regard to this in deciding what action to take and seeking to “provide a fair regulatory framework within which existing operators and new entrants can compete and grow”. Nevertheless, the Commission has confirmed that it does not propose to
introduce measures such as expedited applications and it is not legally able to reduce or waive fees. One option for licensees, although it is unlikely to make much of a difference, is to vary their licences to a lower fee category if GGY falls significantly. Inevitably, some retail betting shops, bingo halls, land-based casinos and online sportsbooks will want or need to terminate contracts (including sponsorship agreements), lay off staff or even close down to reduce costs. It is important that careful consideration is given to contractual clauses and legal obligations before any such action is taken, to avoid potential claims. Of particular relevance are “force majeure” clauses which may enable companies to avoid performance of contractual obligations, depending on the exact wording. The provisions of these clauses must be followed to the letter, including notice, procedural and mitigation requirements. Insurance policies may also need to be given detailed consideration, to determine the circumstances in which a claim can be made. There are clearly many hurdles to be overcome by the gambling industry in the coming weeks (possibly months), but this is an industry that has always been innovative and has never shied away from rising to new challenges. Once the crisis is over, everyone will surely be very keen to get back to watching and betting on sporting events and attending casinos. Those that can respond to the situation in a creative but thoughtful, responsible and lawful way will, in my view, be best placed to ride out the storm.
Melanie is a gambling regulatory lawyer with 13 years’ experience in the sector. Melanie advises on all aspects of gambling law including licence applications, compliance, advertising, licence reviews and changes of control. She has acted for a wide range of gambling operators including major online and land-based bookmakers and casinos, B2B game and software suppliers and start-ups. She also frequently advises operators of raffl es, prize competitions, free draws and social gaming products. Melanie has a particular interest in the use of new technology for gambling products and novel product ideas.
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