NEWS > ANALYSIS
WHAT’S THE POINT OF
CONSUMPTION?
>> As UK-facing operators and suppliers prepare
for a new regulatory regime, Gerard Starkey takes
a look at the Gambling Bill’s recent progress and
path to implementation in 2014
O
ne of the most contentious topics at the end of
2013 was the proposed changes to UK remote
gaming regulation. Delays and debate have caused
uncertainty among operators, which have understandably
been frantically trying to prepare for the cost and
compliance implications it will bring.
The Gambling (Licensing and Advertising) Bill is
expected to be granted Royal Assent in early 2014. It will
require all operators wishing to take bets from customers
based in Great Britain and/or advertise their services in
Great Britain to obtain a new licence from UK regulator,
the Gambling Commission. Software suppliers to the UK
market will also require licensing under new codes.
The enactment of this Point of Consumption (PoC) regime
is to be swiftly followed by a gross gaming revenue tax, likely
to be set at 15%, on all bets placed by customers who reside
in the UK. The tax, coupled with the regulatory changes,
has gained little favour with the UK-facing online gaming
industry, with Gibraltar-based operators threatening a
judicial review should the proposals get given the go-ahead.
Delayed reaction
The Commission had previously indicated the earliest point
at which the Bill could be implemented would be 1 April 2014;
however, due to a slippage in the parliamentary timetable,
Royal Assent is unlikely to be granted until February.
With the Commission committed to a three-month window
for licence applications, it is doubtful that the PoC regime
will come into force until May or June. This is perhaps good
news all round with operators and suppliers given more time
to prepare for what could be an exhaustive licensing process,
especially with changes to the Licencing Codes and Codes of
Practice also expected to be introduced in the coming months.
“Operators will need to implement new operating policies
and procedures as well as have software and equipment retested against the UK standards,” Julian Harris, gaming
lawyer and partner at Julian Harris law firm, says.
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“Depending on the demands of an operator’s
current regulatory regime, the cost of compliance
may be high. Operators will also be required to
contribute towards British problem gambling and
regulatory costs. It is not therefore simply a question
of making an application, and we are not sure that
many operators have yet appreciated quite how
much work is involved ove