Gambling on Great Britain : future changes to enforcement practices in the UK
by Gemma Boore
O n 1st November 2014 , the day on which the Gambling ( Licensing and Advertising ) Act 2014 came into force , all gambling operators with facilities capable of being used in Great Britain were required to hold a licence from the UK Gambling Commission ( the Commission ). Since that day , many of the operators that wished to continue to operate in the lucrative UK market have succeeded in bearing the additional regulatory burden – some choosing to merge with competitors in order to consolidate operations , and others piggy-backing on third party licences through turnkey white label solutions . However , two years on , the Commission is consulting on its enforcement strategy and spurring further change within the sector . But , why is change still needed , and what else do operators need to do to comply ? In this article , Gemma Boore discusses the new enforcement regime , the reasons why it is being introduced , and its implications for the sector .
Why is change needed ? It ’ s undeniable : the UK gaming industry is under serious scrutiny . 2017 sees the sector in the midst of three ongoing investigations . The UK ’ s Department of Culture Media and Sport ( DCMS ) is undertaking a
review of gaming machines and social responsibility measures , the Competition and Markets Authority ( the CMA ) is investigating whether operators are treating their customers fairly , and the Information Commissioner ’ s Office ( ICO ) is targeting more than 400 companies that it believes to be illegally using people ’ s personal details to promote gaming sites . To top it all off , businesses operating in the sector also need to consider the implications of the transposition of the 4th Anti-Money Laundering Directive on current operations , work out how best to deal with the changes to the treatment of ‘ free plays ’ for remote gaming duty purposes later this year , and keep on top of possible changes to the VAT regime . Rather a lot to be considering on top of the usual operational concerns …
The gaming sector is however , not alone in its plight . Ticket reselling ( or ‘ ticket touting ’) businesses are facing investigations from both the CMA and Her Majesty ’ s Revenue & Customs , the energy market is under scrutiny as ministers condemn suppliers ’ price hikes , and the UK ’ s financial watchdog , the Financial Conduct Authority , is reviewing the £ 2.7bn peer-topeer crowdfunding sector for the second time in two years following widespread concerns over whether consumers who lend and invest money on such platforms truly understand the risks .
2� | European Gaming Lawyer | Spring Issue | 2017