UK LEGAL COMMENT


A year ago, Chris Philip MP (the Minister then in charge of


the review) stated that the White Paper would include a “strengthening of age-related measures” and “reforms to prevent the serious harm caused by gambling addiction”. Arguably, this year’s regulatory changes go a long way to addressing these points and a number of the wider issues identified by the Government when commencing its review of the Gambling Act. However, the Commission has specifically left the details of affordability assessment requirements for the White Paper, continuing to keep its consultation on this topic on hold. In 2022 the Commission published details of regulatory action concluded against 20 gambling operators. This included ten fines (which are paid to the Government’s consolidated fund), amounting to a total of just under £17m. In addition, eight financial settlements were agreed (with funds paid by the licensees to causes supporting responsible gambling initiatives and sometimes including funds repaid to victims of crime), amounting to just over £22m. The combined total of £39m of penalties paid by licensees represents an increase of around 60%, compared to the total figure of £24.5m in 2021. The Commission is keen that licensees learn from the


issues identified in published regulatory action and a specific recommendation on this will be include in its customer interaction guidance, subject to completion of the current consultation exercise. The proposed guidance states that licensees should have a process in place to ensure that industry learning, including public statements from casework, is reviewed and implemented into their policies and procedures. In view of this, it is worth revisiting the issues that have arisen during the course of the year and how the Commission’s findings can be incorporated into improved practices. As in previous years, the most common issues identified in the published regulatory action were failures to comply with AML and customer interaction requirements. In particular, many of the assessed operators were pulled up for allowing customers to deposit and/or bet large amounts of money without sufficient scrutiny. A key take away from this year’s regulatory action is that it is insufficient to simply have financial triggers which lead to an interaction taking place with the customer, if the customer is allowed to continue depositing funds and/or gambling pending the interaction taking place and regardless of its outcome. Although not specifically set out even in the new customer interaction requirements, it is clear that, if they are to avoid regulatory action, operators must be proactive in limiting customers’ gambling to an amount they can reasonably justify on the basis of what they know about the customer. Once again, I am willing to predict that next year will be a seminal one for British gambling regulation. Pending further major changes in Government (which can apparently never be discounted) the White Paper should be published in the early part of 2023. Paul Scully MP, the latest Minister to take on this brief, promised on 7 December that he was “keen to publish [the review] in the coming weeks”, although this is a statement which the industry has taken with a fairly large grain of salt! The most anxiously awaited outcome of the Gambling Act review is likely its requirements in relation to affordability


assessments. Whilst there have been indicators that the changes will include stake limits for online slots games which will apply subject to the completion of affordability assessments, operators need wider certainty on this topic. Hopefully the White Paper will include more comprehensive requirements, setting out when affordability assessments should be triggered by deposited or gambled amounts (such as monthly or annual totals). For land-based casinos, there have been some positive signs that the Government is considering a relaxing of current requirements, which may involve increased machine numbers and/or an increased ability to move casino licences to premises in different areas. Such changes would likely do more for the sector than measures such as online stake limits, even if they are presented as creating parity between remote and land-based casinos. The implementation of the proposed changes will take time and many are more likely to come into force in 2024 than 2023. However, for all British gambling operators, certainty as to the future regulatory environment is eagerly anticipated.


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.


JANUARY 2023 37


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