UK LEGAL
IS IT BLACK AND WHITE? The Commission’s comments apply to a range of industry suppliers, including affiliates, webhosting companies, social media platforms, game providers and payment processors. In particular, Miller noted that using affiliates that also drive traffic to the illegal market, and marketing products through platforms that also promote illegal casinos, is “helping to build the illegal market”.
However, Miller’s comments on Meta demonstrate that, from a practical and commercial perspective, operators cannot treat this as the black and white situation the Commission implies it is. He called out the owner of Facebook and Instagram for the ads that appear on these sites for illegal online casinos, including those that target GB users with “not on GamStop” taglines. He is obviously frustrated with the “limited progress” in the Commission’s engagement with Meta and apparent unwillingness to search out illegal ads and remove them. Ultimately, though, gambling operators cannot simply stop advertising on Meta platforms because they are not doing enough to avoid also dealing with black market advertisers. For many, this would be commercial suicide. It is difficult to interpret from Miller’s words whether he expects licensees to stop dealing with any business partners who appear to support the black market, but if he expects them to stop advertising with Meta he is likely to be disappointed.
WHAT SHOULD LICENSED OPERATORS BE DOING? Miller did confirm in his speech that his comments were not “an implied threat of regulatory action against operators that don’t act”, whilst acknowledging that the Commission has and will hold operators accountable for the actions of their commercial partners. It remains somewhat unclear what exactly the Commission’s expectations are.
The practical takeaway is that all
operators licensed by the Commission should review their existing arrangements, including considering where their marketing is being displayed and whether their B2B suppliers also supply illegal operators. A review of third-party due diligence policies and procedures would also be advisable, with a particular focus on what steps are taken take to assess who else suppliers do business with. Ensuring supplier contracts include appropriate termination provisions will also be important, and Commission licensees may want to consider contract provisions prohibiting servicing illegal operators. Making informed, risk-based decisions is what the Commission likes to see, so having written risk assessments, evidence and rationale for decisions made will go a long way to satisfying the regulator, should they come calling.
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 raffles, 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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