European Gaming Lawyer magazine EGL_Spring2017_opt - Page 24

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
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. Th e UK’s Department of Culture Media and Sport (DCMS) is undertaking a 2 | European Gaming Lawyer | Spring Issue | 2017 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 Offi ce (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… Th e gaming sector is however, not alone in its plight. Ticket reselling (or aѥЁѽѥd͕ͥ)ɔٕѥѥ́ɽѠѡ 5!)5éIٕՔ ѽ̰ѡɝ䁵ɭЁ)չȁ͍ѥ䁅́ѕ́ϊdɥ)̰ѡU/é݅эѡ) ՍЁѡɥ䰁́ɕ٥ݥѡ ȸ݉ȵѼ)ȁɽݑչ͕ѽȁȁѡ͕ѥݼ)啅́ݥݥɕɹٕ́ȁݡѡ)յ́ݡٕЁ䁽Ս)љɵ́ձչхѡɥ̸ͭ